Cash Flows from (Used for) Operating Activities-Direct Method The cash flows from (used for) operating activities are reported by the direct method or the statement of cash flows. Determine the following: a. If sales for the current year were $658,600 and accounts receivable decreased by $34,200 during the year, what was the amount of cash received from customers? $ b. If income tax expense for the current year was $38,400 and income tax payable decreased by $4,900 during the year, what was the amount of cash paid 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 $34,200 during the current year. Cash Paid for Merchandise Purchases The cost of merchandise sold for Patterson Corporation for a recent year was $9,445 million. The balance sheet showed the following current account balances (in millions): Determine the amount of cash paid for merchandise. million Determining Selected Amounts for Cash Flows from (Used for) Operating ActivitiesDirect Method Selected data taken from the accounting records of Ginis Inc. for the current year ended December 31 are as follows: During the current year, the cost of merchandise sold was $455,400, and the operating expenses other than depreciation were $90,500. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows. a. Determine the amount reported on the statement of cash flows for cash paid for merchandise. $ b. Determine the amount reported on the statement of cash flows for cash paid for overating expenses