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Question: The income statement for Piura Merchandising Corporation is as follows:
Other information is as follows:
a. Accounts payable decreased by $20,000 during the year.
b. Accounts receivable increased by $20,000.
c. All wages were paid at the beginning of the year; at the end of the year, wages payable had a balance of $12,000.
d. Prepaid insurance increased by $24,000 during the year.
Operating Cash Flows, Direct Method Refer to the information for Piura Merchandising Corporation on the previous page.
Required: Prepare a schedule of operating cash flows using the direct method.
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