Compute the cash received from customers

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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 $300,000 and $240,000 and cost of goods sold of $150,000 and $114,000, respectively. Power's inventory increased by $25,000, but Surge's decreased by $15,000. Power's accounts receivable increased by $16,000 and its accounts payable decreased by $16,000 during 20X4. Surge's accounts receivable decreased by $14,000 and its accounts payable increased by $5,000.

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: EM132842198

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