Net income for the Hot Springs Company for the most recent year was $150,000,consisting of $865,000 of revenues,$360,000 of cost of goods sold,and $365,000 of operating expenses.The following changes in current assets and current liabilities have been identified:
1.Accounts receivable increased by $85,000.
2.Inventory decreased by $37,500.
3.Accounts payable increased by $82,500.
4.Accrued operating expenses payable decreased by $45,000.
Required:
Calculate the cash flows from operating activities for the year,applying the direct method.Identify the individual amounts that would be disclosed in the statement of cash flows where possible.

Question

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The Answer of Net income for the Hot Springs Company for the most recent year was $150,000,consisting of $865,000 of revenues,$360,000 of cost of goods sold,and $365,000 of operating expenses.The following changes in current assets and current liabilities have been identified:
1.Accounts receivable increased by $85,000.
2.Inventory decreased by $37,500.
3.Accounts payable increased by $82,500.
4.Accrued operating expenses payable decreased by $45,000.
Required:
Calculate the cash flows from operating activities for the year,applying the direct method.Identify the individual amounts that would be disclosed in the statement of cash flows where possible.

Net Income for the Hot Springs Company for the Most