aughn Company completed its first year of operations on December 31, 2022. Its initial income statement showed that Vaughn had sales revenue of $196,100 and operating expenses of $89,100. Accounts receivable and accounts payable at year-end were $53,500 and $27,700, respectively. Assume that accounts payable related to operating expenses. Ignore income taxes. Compute net cash provided by operating activities using the direct metho
Vaughn Company completed its first year of operations on December 31, 2022. Its initial income statement showed that Vaughn had sales revenue of $196,100 and operating expenses of $89,100. Accounts receivable and accounts payable at year-end were $53,500 and $27,700, respectively. Assume that accounts payable related to operating expenses. Ignore income taxes.
Compute net cash provided by operating activities using the direct method. (Show amounts that decrease
Operating Activities: These are the functions that are directly related to its goods or services. These activities get included in the cash flow statement and help in the inflow or outflow of cash.
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