Vlieg Corporation engaged in the transactions that follow in 2014. Using the direct method, compute the various cash flows from operating activities as required

a. During 2014, Vlieg had cash sales of $41,300 and sales on credit of $123,000. During the same year, accounts receivable decreased by $18,000. Determine the cash receipts from sales during 2014.

b. During 2014, Vlieg’s cost of goods sold was $119,000. During the same year, merchandise inventory increased by $12,500 and accounts payable decreased by $4,300. Determine the cash payments for purchases during 2014.

c. During 2014, Vlieg had operating expenses of $45,000, including depreciation of $15,600. Also during 2014, related prepaid expenses decreased by $3,100 and relevant accrued liabilities increased by $1,200. Determine the cash payments for operating expenses to suppliers of goods and services during 2014.

d. Vlieg’s income tax expense for 2014 was $4,300. Income taxes payable decreased by $230 that year. Determine the cash payments for income taxes during 2014.

Answer rating: 100% (QA)

a Cash receipts from sales during 2014 Calculate the total sales for 2014 Total sales Ca... View the full answer