Refer to the information in Problem 17-1A. Other information regarding Talware Networx Inc.:
a. All sales are credit sales
b. All credits to accounts receivable are receipts from customers.
c. All purchases of merchandise are on credit.
d. All debits to accounts payable result from payments for merchandise.
e. Other operating expenses are cash expenses.
f. The only decrease in income taxes payable is for payment of taxes.

Required
Prepare a statement of cash flows for 2014 using the direct method to report cash inflows and outflows from operatingactivities.

Transcribed Image Text:

Talware Networx Inc. Comparative Balance Sheet Information Talware Networx Inc Income Statement For Year Ended December 31, 2014 December 31 Assets 2014 2013 Sales Cost of goods sold... $929,600 557,200 372,400 37,800 Merchandise inventory284,200 249,200 Equipment...155,400 138,600 43,400 Operating expenses Depreciation expense $ 25,200 Total operating expenses.... 259,000 $113,400 19,600 S 93,800 Liabilities and Equity Income from operations.. Accounts payable...$ 32,200 44,800 11,200 12,600 40,600