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Question
Balances of the current asset and current liability accounts at the end and beginning of the year are as follows:
| End | Beginning | |
| Cash | $ 67,000 | $73,000 |
| Accounts Receivable (net) | 73,000 | 60,000 |
| Inventories | 54,000 | 37,000 |
| Accounts Payable | ||
| (merchandise creditors) | 43,000 | 37,000 |
| Salaries Payable | 1,800 | 3,800 |
| Sales (on account) | 210,000 | ― |
| Cost of Merchandise Sold | 70,000 | ― |
| Operating Expenses Other Than Depreciation | 67,000 | ― |
Use the direct method to prepare the operating activities section of a statement of cash flows.
Answer
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