Quitzaus Supplies Inc.s income statement for the year ended December 31, 2021, follows: Additional information: Accounts

Question:

Quitzau’s Supplies Inc.’s income statement for the year ended December 31, 2021, follows:

Additional information: 

■ Accounts receivable decreased $20,000 during the year. 

■ Accounts payable increased $15,000 during the year. 

■ Prepaid expenses increased $5,000 during the year. 

■ Income taxes payable decreased $3,000 during the year. 

■ Accrued interest payable increased $2,000 during the year. 

■ Quitzau has adopted a policy of reporting the cash flows arising from the receipt and payment of dividends and interest as an operating activity. 


Required:

Prepare the operating section of Quitzau’s statement of cash flows for the year ended December 31, 2021, using the direct method.

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