$($Appendix $11$A$)$ Preparing Net Cash Flows from Operating Activities$$Direct Method

Colassard Industries has the following data available for preparation of its statement of cash flows:

Sales revenue $$341,200$ Inventory, increase $$5,710$

Cost of goods sold $182,500$ Prepaid insurance, increase $2,100$

Wages expense $58,400$ Accounts payable, increase $5,680$

Insurance expense $8,300$ Notes payable, increase $32,000$

Interest expense $20,800$ Interest payable, increase $3,125$

Income taxes expense $17,210$ Wages payable, decrease $5,400$

Accounts receivable, decrease $14,300$

Required:

Prepare the cash flows from operating activities section of the statement of cash flows, using the direct method. Use a minus sign to indicate any decreases in cash or cash outflows.

Colassard Industries

Statement of Cash Flows $($Partial$)$

Using Direct Method

Cash flows from operating activities:

Cash collected from customers $fill in the blank $1$

$355,500$

Cash paid to suppliers fill in the blank $2$

Cash payments to employees fill in the blank $3$

Cash payments for insurance fill in the blank $4$

Cash payments for interest fill in the blank $5$

Cash payments for income taxes fill in the blank $6$

Net cash provided by operating activities $fill in the blank $7$