Operating Cash Flows $($Direct Method$)$

Calculate the cash flow in each of the following cases:

a$.$ Cash paid for rent:

Rent expense$$62,000$Prepaid rent, January $110,000$Prepaid rent, December $316,000$Cash FlowAnswer $1$

b$.$ Cash received as interest:

Interest income$$16,000$Interest receivable, January $16,000$Interest receivable, December $313,700$Cash FlowAnswer $2$

c$.$ Cash paid for merchandise purchased:

Cost of goods sold$$98,000$Inventory, January $119,000$Inventory, December $3122,000$Accounts payable, January $111,000$Accounts payable, December $316,000$Cash FlowAnswer $3$