The independent cases are listed below that includes all items
relevant to operating activities:
| Case A | Case B | Case C | ||||||||||
| Sales revenue | $ | 65,000 | $ | 55,000 | $ | 96,000 | ||||||
| Cost of goods sold | 35,000 | 26,000 | 65,000 | |||||||||
| Depreciation expense | 10,000 | 2,000 | 26,000 | |||||||||
| Salaries and wages expense | 5,000 | 13,000 | 8,000 | |||||||||
| Net income (loss) | 15,000 | 14,000 | (3,000 | ) | ||||||||
| Accounts receivable increase (decrease) | (1,000 | ) | 4,000 | 3,000 | ||||||||
| Inventory increase (decrease) | 2,000 | 0 | (3,000 | ) | ||||||||
| Accounts payable increase (decrease) | 0 | 2,500 | (1,000 | ) | ||||||||
| Salaries and wages payable increase (decrease) | 1,500 | (2,000 | ) | 1,000 | ||||||||
Compute cash flows from operating activities using the direct
method. (Amounts to be deducted should be indicated with a
minus sign.)
| Case A | Case B | Case C | |
| Cash Collected from Customers | |||
| Cash Payments to Suppliers | |||
| Cash Payments for Salaries and Wages | |||
| Net Cash Provided by Operating Activities |
Compute cash flows from operating activities using the direct method. (Amounts to be deducted should be indicated with a minus sign.)
| Case A | Case B | Case C | |
| Cash Collected from Customers | 65000+1000 = 66000 | 55000-4000 = 51000 | 96000-3000 = 93000 |
| Cash Payments to Suppliers | 35000+2000 = -37000 | 26000-2500 = -23500 | -63000 |
| Cash Payments for Salaries and Wages | 5000-1500 = -3500 | 13000+2000= -15000 | -7000 |
| Net Cash Provided by Operating Activities | 25500 | 12500 | 23000 |
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