Blair Corporation Reported the Following for Year 2:
Required:
A)

Blair Corporation reported the following for Year 2:
Required:
a) Use the reconciliation approach to compute the appropriate figures for cash flows from operating activities.b) Present in good form the cash flows from operating activities section of a statement of cash flows using the direct method. $\begin{array}{|l|r|r|}\hline &\text {Beginning}&\text {Ending}\\\hline \text {Accounts receivabl }&\$ 40,000 & \$ 38,000\\\hline \text { Merchandise inventory } & 32,000 & 36,000 \\\hline \text { Prepaid insurance } & 200 & 140 \\\hline \text { Interest receivable } & 1,800 & 600 \\\hline \text { Accounts payable } & 2,500 & 4,200 \\\hline \text { Salaries payable } & 4,000 & 3,600 \\\hline\\\hline \text { Other information:}&\\\hline \text {Sales (all on account) }&\$280,000\\\hline \text {Interest revenue }&10,000\\\hline \text {Cost of goods sold }&160,000\\\hline \text { Salaries expense}&24,000\\\hline \text { Insurance expense}&2,200\\\hline \end{array}$