Compute the cash flows from operating activities

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Power Corporation owns 75 percent of Surge Company's stock; no intercompany purchases or sales were made in 20X4. For the year, Power and Surge reported sales of $360,000 and $210,000 and cost of goods sold of $140,000 and $99,750, respectively. Power's inventory increased by $21,000, but Surge's decreased by $18,000. Power's accounts receivable increased by $19,000 and its accounts payable decreased by $15,000 during 20X4. Surge's accounts receivable decreased by $13,000 and its accounts payable increased by $8,000.

Required:

Problem 1: Assuming there were no other cash flows from operations, using the direct method of computing cash flows from operating activities, compute the following:

A. Cash Received From Customers
B. Cash Payments to Suppliers
C. Cash Flows From Operating Activities

Reference no: EM132955208

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