The accounting records of Michigan Fur Traders include these accounts:

Requirement
1. Compute Michigan€™s net cash provided by (used for) operating activities during December. Use the indirect method. Do you see any potential problems in Michigan€™s cash flows from operations? How can youtell?

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Cash Accounts Receivable Dec 5,000 Dec 1 100,000 Receipts 526,000 Payments 438,000 Receipts 528 Dec 31 188,000 Collections 526,000 Dec 3 7,000 l Accumulated Deprec.-Equipment Dec 60,000 9,000 Dec 31 69,000 Equipment Dec 181,000 Acquisition 10,000 Dec 31 191,000 Accrued Liabilities Retained Earnings Dec 1 19,000 Quarterly Dec 1 67,000 25,000 Dividend 19,000 Net Income 10,000 Dec 31 58,000 Payments 29,000 Recei Dec 31 15,000 Dec 1 Purchases 451,000 Cost of Sales 448,000 Dec 31 Inventory 6,000 9,000 Accounts Pavable 14,500 Payments 331,000 Purchases 451,000 Dec 31 134,500 Dec 1