Ragg Shop, Inc. (RSI), recognized $3,800 of sales revenue on account and collected $2,950 of cash from

Question:

Ragg Shop, Inc. (RSI), recognized $3,800 of sales revenue on account and collected $2,950 of cash from accounts receivable. Further, RSI recognized $1,200 of operating expenses on account and paid $900 cash as partial settlement of accounts payable.

Required

Based on this information alone:

a. Prepare the operating activities section of the statement of cash flows under the direct method.

b. Prepare the operating activities section of the statement of cash flows under the indirect method.

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Fundamental financial accounting concepts

ISBN: 978-0078025365

8th edition

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

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Question Posted: Oct 12, 2013 05:33 AM

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Ragg Shop, Inc. (RSI), recognized $3,800 of sales revenue on account and collected $2,950 of cash from

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a Operating Activities Direct Method Cash receipts from customers 2950 Cas...View the full answer

Fundamental financial accounting concepts

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