Question

For the year 2018, a company sold 400 units for $100 per unit. The cost of goods sold is
$62.50 per unit aiid the shipping charges paid are $3 per unit. The additional information is summarized as follows:
Desci iption Amount
Beginning inventory S9,3 75
Ending inventory S6.250



Advertising cxpense S2,500
Bank Fees S100
Tel• r ••• e exr eiises S1.000
Utilities S500
Office Supplies expense 5500
Sale o1’ equipments 53.000
Repavinent o1 note payable 55.000
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

Answer:

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