Computing Cash Flows from Operating Activities (Direct Method)

The income statement and selected balance sheet information for Direct Products Company for the year ended December 31, 2011, follow.

Income Statement

Sales revenue

$51,300

Expenses

Cost of goods sold

20,400

Depreciation expense

1,810

Salaries expense

8,400

Rent expense

4,400

Insurance expense

1,760

Interest expense

1,740

Utilities expense

1,250

Loss on sale of land

920

Net income

$10,620

Selected Balance Sheet Accounts
	2011	2010
Accounts receivable	$554	$581
Merchandise inventory	992	766
Accounts payable	438	469
Salaries payable	110	58
Utilities payable	21	15
Prepaid rent	31	14
Prepaid insurance	12	37

Required:

Prepare the cash flows from operating activities section of the 2011 statement of cash flows using the direct method.

Statement of cash flows	for year end 31, 2011
Cash flows from operating activities:
options(Cash payments for utilities, cash payments for rent, C.P for rent, C.P for utilities, C.P for interest, C.P to suppliers, C.P to purchase land, Cash receipts to customers, C.P to purchase equipment)	XX
Cash payments for utilities, cash payments for rent, C.P for rent, C.P for utilities, C.P for interest, C.P to suppliers, C.P to purchase land, Cash receipts to customers, C.P to purchase equipment	XX
Cash payments for utilities, cash payments for rent, C.P for rent, C.P for utilities, C.P for interest, C.P to suppliers, C.P to purchase land, Cash receipts to customers, C.P to purchase equipment	XX
Cash payments for utilities, cash payments for rent, C.P for rent, C.P for utilities, C.P for interest, C.P to suppliers, C.P to purchase land, Cash receipts to customers, C.P to purchase equipment	XX
Cash payments for utilities, cash payments for rent, C.P for rent, C.P for utilities, C.P for interest, C.P to suppliers, C.P to purchase land, Cash receipts to customers, C.P to purchase equipment	XX
Cash payments for utilities, cash payments for rent, C.P for rent, C.P for utilities, C.P for interest, C.P to suppliers, C.P to purchase land, Cash receipts to customers, C.P to purchase equipment	XX
Cash payments for utilities, cash payments for rent, C.P for rent, C.P for utilities, C.P for interest, C.P to suppliers, C.P to purchase land, Cash receipts to customers, C.P to purchase equipment	XX
Net Cash provided by operating activities:	XX