The following accounts and corresponding balances were drawn from Pixi Company's 2014 and 2013 year-end balance sheets:
.png)
The following accounts and corresponding balances were drawn from Pixi Company's 2014 and 2013 year-end balance sheets:
Income Statement:
Sales .............. $650,000
Salary expense ........... (420,000)
Other operating expenses ...... (110,000)
Operating income ......... 120,000
Non operating items: Interest revenue ... 15,000
Net income ........... $135,000
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.