M12-12 Computing Cash Flows from Operating Activities (Direct Method) [LO 12-6]

The independent cases are listed below that includes all items relevant to operating activities:

	Case A			Case B			Case C
Sales revenue	$	72,000		$	62,000		$	103,000
Cost of goods sold		38,500			29,500			68,900
Depreciation expense		10,700			2,700			26,700
Salaries and wages expense		5,700			13,700			8,700
Net income		17,100			16,100			(1,300	)
Accounts receivable increase (decrease)		(1,100	)		4,700			3,700
Inventory increase (decrease)		2,700			0			(3,700	)
Accounts payable increase (decrease)		0			3,200			(1,100	)
Salaries and wages payable increase (decrease)		1,850			(2,700	)		1,100

Compute cash flows from operating activities using the direct method. (Amounts to be deducted should be indicated with a minus sign.)

	Case A	Case B	Case C
Cash Collected from Customers	$73,100	$57,300	$99,300
Cash Payments to Suppliers	38,500		(70,000)
Cash Payments for Salaries and Wages
Net Cash Provided by Operating Activities	$111,600	$57,300	$29,300

M12-12 Computing Cash Flows from Operating Activities (Direct Method) [LO 12-6] The independent cases are listed below that includes all items relevant to operating activities Case A Case B Case C 72,000 62,000 103,000 Sales revenue Cost of goods sold 38,500 29,500 68,900 Depreciation expense 10,700 2,700 26,700 Salaries and wages expense 5,700 13,700 8,700 Net income 17,100 16,100 (1,300) (1,100) 4,700 3,700 2,700 0 (3,700) Accounts receivable increase (decrease) Inventory increase (decrease) Accounts payable increase (decrease) 0 3,200 (1,100) Salaries and wages payable increase (decrease) 1,850 (2,700) 1,100 Compute cash flows from operating activities using the direct method. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete Case A Case B Case C 73,100 57,300 99,300 Cash Collected from Customers x (70,000) X 38,500 Cash Payments to Suppliers Cash Payments for Salaries and Wages Net Cash Provided by Operating Activities S 111,600 S 57,300 29,300