Reference no: EM132288977

Question - Objectives to prepare the cash flows from operating activities section of a statement of cash flows using the direct method. The following information is available for Gene's Clothing Store for 20X2

Sales $280,000

Cost of Goods Sold 123,000

Selling Expenses 20,000

General Expenses $34,160

Depreciation Expense $1,450

Interest Expense $5,425

Income Tax $19,455

Balance, December 31, 20X2 Balance, January 1, 20X2

Merchandise $14,360 $24,350

Accounts Receivable $13,578 $ 11,435

Prepaid Rent $2,500 -0-

Accounts Payable $31,450 $21,422

Income $1,890 $2,400

Directions - Using the direct method, prepare the cash flows from Operating Activities section of the statement of cash flows.