Operating Cash Flows (Direct Method) Calculate the cash flow in each of the following cases: a. Cash paid for advertising: Advertising expense Prepaid advertising, January 1 Prepaid advertising, December 31 Cash Flow $71,000 11,000 15,000 $ b. Cash paid for income taxes: Income tax expense Income tax payable, January 1 Income tax payable, December 31 Cash Flow $380,000 7,100 4,900 $ c. Cash paid for merchandise purchased: Cost of goods sold Inventory, January 1 Inventory, December 31 Accounts payable, January 1 Accounts payable, December 31 Cash Flow $189,000 30,000 25,000 10,000 12,000 $