The following information was taken from the comparative financial statements of Altec Industries, Inc., for the years ended December 31, 2002 and 2003:
|
Net income for 2003 |
$175,000 |
|
Sales revenue |
750,000 |
|
Cost of goods sold |
425,000 |
|
Depreciation expense for 2003 |
45,000 |
|
Amortization of goodwill for 2003 |
5,000 |
|
Interest expense on short term debt for 2003 |
8,000 |
|
Dividends declared and paid in 2003 |
30,000 |
|
Utilities expense. |
3,000 |
|
Dec. 31, |
Dec. 31, |
|
|
2003 |
2002 |
|
|
Accounts receivable (net) |
$45,000 |
$57,000 |
|
Inventory |
62,500 |
50,000 |
|
Accounts payable |
70,000 |
51,500 |
Use the direct method to compute cash flows provided by operating activities in 2003. (HINT: You need to calculate cash paid for operating expenses.)