Operating Cash Flows (Direct Method)

Calculate the cash flow in each of the following cases: a. Cash paid for advertising:

Advertising expense	$62,000
Prepaid advertising, January 1	13,000
Prepaid advertising, December 31	15,000
Cash Flow	Answer

b. Cash paid for income taxes:

Income tax expense	$31,000
Income tax payable, January 1	7,100
Income tax payable, December 31	5,900
Cash Flow	Answer

c. Cash paid for merchandise purchased:

Cost of goods sold	$180,000
Inventory, January 1	30,000
Inventory, December 31	24,000
Accounts payable, January 1	10,000
Accounts payable, December 31	11,000
Cash Flow	Answer