The following accounts and corresponding balances were drawn from Marinelli Company’s Year 2 and Year 1 year-end balance sheets:

The Year 2 income statement is shown next: Income Statement
Sales ......................................................................$530,000
Salary expense .....................................................(214,000)
Other operating expenses .................................(175,000)
Operating income .................................................141,000
Nonoperating items: Interest revenue .................16,500
Net income...........................................................$157,500

Required
a. Use the direct method to compute the amount of cash inflows from operating activities.
b. Use the direct method to compute the amount of cash outflows from operating activities.

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Year 1 Account Title Accounts receivable Interest receivable Other operating expenses payable Salaries payable Year 2 $35,200 4,200 $31,600 18,500 21,000 6,500 7,200