The following accounts and corresponding balances were drawn from Marinelli Company's 2017 and 2016 year-end balance sheets:
Account Title 2017 2016
Accounts receivable........................................ $35,200............... $31,600
Interest receivable............................................. 4,200.................. 4,800
Other operating expenses payable.......................... 21,000................. 18,500
Salaries payable................................................ 6,500.................. 7,200
The 2017 income statement is shown below:
Income Statement
Sales................................................................ $ 530,000
Salaries expense................................................... (214,000)
Other operating expenses........................................ (175,000)
Operating income................................................... 141,000
Non operating 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.