Cash Flows from (Used for) Operating ActivitiesDirect Method

The cash flows from (used for) 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 $740,900 and accounts receivable decreased by $55,600 during the year, what was the amount of cash received from customers? $fill in the blank 1

b. If income tax expense for the current year was $39,800 and income tax payable decreased by $4,200 during the year, what was the amount of cash paid for income taxes? $fill in the blank 2

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 $55,600 during the current year.