For liscal year 2018. Riffe Enterprises had the following summary information concerning its operating activities. The company had no investing or financing activities this year.

REQUIRED:

a. Enter the items above into the Financial Statement Effects Template. Under noncash assets, use three separate columns for accounts receivable and prepaid rent and the accumulated depreciation contra-asset. Calculate the totals for each column.

b. What was the company's net income for the year? What was the cash flow from operating activities? (Use the direct method.)

c. Indicate the direction and amounts by which each of the following accounts changed during the year.

1. Accounts receivable

2. Prepaid rent

3. Accumulated depreciation

4. Wages payable

d. Using your results above, prepare the operating activities section of the statement of cash flows using the indirect format.

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Sales of services to customers on credit . 2. 1. $769,200 Sales of services to customers for cash. Employee compensation earned.... Cash payment in advance to landiord for affices Cash paid to employees for compensation ... Rental expense for offices used over the year.. 46.200 526,700 149,100 521,600 117,900 3. 4, 5. 6. 7. Collections from customers on accounts receivable 724,100 .. 8. Operaling expenses (all paid in cash) Depreciation expense,... 122,800 9. 23,000