Reference no: EM132628515

An income statement for the first year of operations for Patti Company appears below:

sales 390,000

dividend revenue 39,000

Interest revenue 24,050

cost of goods sold -208,000

salary expense -26000

depreciation expense -70,200

income tax expense -109,200

net income 39,650

Additional information:

1. Accounts payable, end of year, $13,000.
2. Salaries payable, end of year, $8,450.
3. Inventories, end of year, $26,000.
4. Accounts receivable, end of year, $32,500.

Problem 1: Use the direct approach to calculate the cash provided (used) by operating activities for Patti Company