Question

The accounting records of Best Pharmaceuticals, Inc., reveal the following Click the icon to view the accounting records.) Requirement Compule cash fows from operating activities by the directeethod. Also evaluate Bests operating cash flow. Give the reason for your evaluation Start by completing the cash flows from operating activos (Use parentheses or a minus sign for numbers to be subtracted, for payments, and for a nel decrease in cash) Cash flows from operating activities: Receipts 0 Accounting records Total cash recots Payments $ 44000 16,000 Payment of salaries and wages Depreciation expense Decrease in current Hatte Decrease in current assets other than cash Payment of dividends Collection of accounts Not income $ 40,000 Payment of income tax 24,000 Collection of dividend revenue 32.000 Payment of interest Cash sales 35.000 Loss on sale of land 9.000 Ausbon of land win cash.... Payment of accounts 110.000 p l cash provided by used for ring active Evolute Bessering cash flow veteran for your evaluation The operating cash flow is This is shown by the 8.000 15,000 35,000 6,000 33,000 53.000 Print Done

Answer 1

Cash flow from operating activities:
Receipts:
Cash sales		$35,000
Collection of accounts receivable		110,000
Total cash receipts		145,000
Payments:
Payment of salaries and wages	40,000
Payment of income tax	16,000
Payment of accounts payable	53,000
Payment of interest	15,000
Total cash payments		124,000
Net cash provided by (used for) operating activities		$21,000

The operating cash flow is positive. This is shown by the Cash flow statement.