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The following accounts and corresponding balances were drawn from Marinelli Companys Year 2 and Year...

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Accounting

The following accounts and corresponding balances were drawn from Marinelli Companys Year 2 and Year 1 year-end balance sheets.

Account Title

Year 2

Year 1

Accounts receivable

$46,400

$39,900

Interest receivable

4,900

6,600

Other operating expenses payable

30,200

19,300

Salaries payable

10,550

15,450

The Year 2 income statement is shown next.

Income Statement

Sales

$680,000

Salary expense

(167,000)

Other operating expenses

(264,500)

Operating income

248,500

Nonoperating items: Interest revenue

23,700

Net income

$272,200

Required a. Use the direct method to compute the amount of cash inflows from operating activities. b. Use the direct method to compute the amount of cash outflows from operating activities.

Outline:

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The following accounts and corresponding balances were drawn from Marinelli Company's Year 2 and Year 1 year-end balance sheets. The Year 2 income statement is shown next. Required a. Use the direct method to compute the amount of cash inflows from operating activities. b. Use the direct method to compute the amount of cash outflows from operating activities

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