Exercise 12-5A (Algo) Use the direct method to determine cash flows from operating activities LO 12-2

The following accounts and corresponding balances were drawn from Marinelli Companys Year 2 and Year 1 year-end balance sheets.

Account Title	Year 2	Year 1
Accounts receivable	$50,000	$39,200
Interest receivable	4,950	6,100
Other operating expenses payable	27,200	21,800
Salaries payable	11,200	16,950

The Year 2 income statement is shown next.

Income Statement
Sales	$750,000
Salary expense	(158,000)
Other operating expenses	(262,000)
Operating income	330,000
Nonoperating items: Interest revenue	22,600
Net income	$352,600

Required a. Use the direct method to compute the amount of cash inflows from operating activities. b. Use the direct method to compute the amount of cash outflows from operating activities.