Super Sales, Inc., shows the following information in its accounting records at year end:
|
Sales revenue |
$890,000 |
|
Interest revenue |
12,000 |
|
Cost of goods sold. |
425,000 |
|
Wages expense. |
225,000 |
|
Depreciation expense |
50,000 |
|
Other (cash) operating expenses |
84,000 |
|
Dividends declared. |
40,000 |
Selected balance sheet data are as follows:
|
Beginning |
End of |
|
|
of Year |
Year |
|
|
Accounts receivable (net) |
$ 55,000 |
$ 78,000 |
|
Interest receivable |
10,000 |
12,000 |
|
Inventory |
225,000 |
220,000 |
|
Accounts payable |
42,000 |
35,000 |
|
Wages payable |
20,000 |
25,000 |
|
Dividends payable |
35,000 |
40,000 |
Required
1.Using the direct method, compute the net cash flows provided by (used in) operating activities for Super Sales, Inc.
2. Interpretive Question: Explain the main differences between the net amount of cash flows from operations and net income (loss).