Operating Cash Flows (Direct Method) Calculate the cash flow for each of the following cases.

a.Cash paid for rent:	Answer
Rent expense	$162,500
Prepaid rent, beg. year	27,500
Prepaid rent, end of year	20,000
b. Cash received as interest:	Answer
Interest income	$38,750
Interest receivable, beg. year	7,500
Interest receivable, end of year	9,500
c. Cash paid for merchandise purchased:	Answer
Cost of goods sold	$217,500
Inventory, beg. year	47,500
Inventory, end of year	57,500
Account payable, beg. year	27,500
Accounts payable, end of year	20,000