Solution-Cash flows under the direct method

Cash flows under the direct method

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Reference no: EM13918355

Expert Electronics, Inc. (EEI), recognized $3,800 of sales revenue on account and collected $2,100 of cash from accounts receivable. Further, EEI recognized $900 of operating expenses on account and paid $700 cash as partial settlement of accounts payable.

Required:

Based on this information alone:

a. Prepare the operating activities section of the statement of cash flows under the direct method.

b. Prepare the operating activities section of the statement of cash flows under the indirect method.

Reference no: EM13918355

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Cash flows under the direct method

Reference no: EM13918355

Reference no: EM13918355

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