Question

For the year 2018, a company sold 400 units for $100 per unit. The cost of goods sold is
$62.50 per unit and the shipping charges paid are $3 per unit. The additional information
is summarized as follows:
Amount
$9,375
$6,250
Description
Beginning inventory
Ending inventory
Operating expenses.
Advertising expense
Bank Fees
Telephone expenses
Utilities
Office Supplies expense
Sale of equipments
Repayment of note payable
$2,500
$100
$1,000
$500
$500
$3,000
$5,000
The income taxes paid for the year are $2,500. Compute the cash flows from the operating
activities using the direct method.
a. The cash flows from the operating activities is $12,325.
b. The cash flows from the operating activities is $11,025.
c. The cash flows from the operating activities is $9,825.
d. The cash flows from the operating activities is $12,825.​

Answer 1

Explanation:

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