Cash Flows from Operating Activities-Direct Method The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following: a. If sales for the current year were $657,900 and accounts receivable decreased by $46,700 during the year, what was the amount of cash received from customers? b. If income tax expense for the current year was $41,400 and income tax payable decreased by $4,300 during the year, what was the amount of cash payments for income taxes? C. Briefly explain why the cash received from customers in part (a) is different from sales. Because the customers paid than the amount of sales for the period, cash received from customers sales made on account by $46,700 during the current year.