Calculating Operating Cash Flows (Direct Method):

Compute Chakravarthy's current-year cash received from customers and cash paid for merchandise purchased.

Calculating Operating Cash Flows (Direct Method) Chakravarthy Company's current year income statement reports the following: Sales Isis1.23? 500 I Cost of goods sold 825, 000 Gross prot I $41 2 500 I Chakravarthy's comparative balance sheets show the following (accounts payable relate to merchandise purchases): End of Year Beg. of Year Accounts receivable I $106,500 I $90,000 _ Inventory 7| 1631500I 1441000! Accounts payable I 46,500I 55,500I Compute Chakravarthy's current-year cash received from customers and cash paid for merchandise purchased. Cash received from customers I $ 0 I Cash paid for merchandise I$ OI