The following accounts and corresponding balances were drawn from Marinelli Company's 2014 and 2013 year end balance sheets:
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The 2014 income statement is shown below:
Income Statement:
Sales ..................$530,000
Salary expense ..............$(214,000)
Other operating expenses ..........$(175,000)
Operating income .............$141,000
Non operating items:
Interest revenue ....$16,500
Net income ..............$157,500
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.