The cash flows from (used for) operating activities are reported by the direct method on...
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Accounting
The cash flows from (used for) operating activities are reported by the direct method on the statement of cash flows. Determine the following:
a. If sales for the current year were $727,400 and accounts receivable decreased by $40,700 during the year, what was the amount of cash received from customers? $fill in the blank 1
b. If income tax expense for the current year was $54,100 and income tax payable decreased by $6,900 during the year, what was the amount of cash paid for income taxes? $fill in the blank 2
c. Briefly explain why the cash received from customers in part (a) is different from sales. Because the customers paid
less or more
than the amount of sales for the period, cash received from customers
exceeded or is less than
sales made on account by $40,700 during the current year.
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