Operating Cash Flows $($Direct Method$)$

Calculate the cash flow in each of the following cases:

a$.$ Cash paid for advertising:

Advertising expense$$67,000$Prepaid advertising, January $111,000$Prepaid advertising, December $3115,000$Cash FlowAnswer $1$

b$.$ Cash paid for income taxes:

Income tax expense$$34,000$Income tax payable, January $17,100$Income tax payable, December $314,900$Cash FlowAnswer $2$

c$.$ Cash paid for merchandise purchased:

Cost of goods sold$$185,000$Inventory, January $130,000$Inventory, December $3125,000$Accounts payable, January $110,000$Accounts payable, December $3112,000$Cash FlowAnswer $3$