Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2013:
From the income statement:
Assume that there were no sales of long-term assets, no interest revenue, and no expenses other than the expenses shown above. Please also assume that accounts payable are for purchases of inventory only.
On the statement of cash flows, what amount will be shown for cash flow from operating activities?

Question

Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2013:
From the income statement:
   Assume that there were no sales of long-term assets, no interest revenue, and no expenses other than the expenses shown above. Please also assume that accounts payable are for purchases of inventory only.
On the statement of cash flows, what amount will be shown for cash flow from operating activities?

Quizplus · Accepted Answer

The Answer of Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2013:
From the income statement:
   Assume that there were no sales of long-term assets, no interest revenue, and no expenses other than the expenses shown above. Please also assume that accounts payable are for purchases of inventory only.
On the statement of cash flows, what amount will be shown for cash flow from operating activities?

Parmesan Company Uses the Direct Method for Its Statement of Cash