Georgia Products Co. had the following positive cash flows during the current year: received cashfrom customers of $750,000; received bank loans of $35,000; and received cash from the sale ofcommon stock of $145,000. During the same year, cash was paid out to purchase inventory for$335,000, to employees for $230,000, and for the purchase of plant assets of $190,000. Calculatethe amount of cash provided by or used for operating activities by the direct method.
Georgia Products Co. had the following positive cash flows during the current year: received cashfrom customers of $750,000; received bank loans of $35,000; and received cash from the sale ofcommon stock of $145,000. During the same year, cash was paid out to purchase inventory for$335,000, to employees for $230,000, and for the purchase of plant assets of $190,000. Calculatethe amount of cash provided by or used for operating activities by the direct method.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 10E
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Georgia Products Co. had the following positive
from customers of $750,000; received bank loans of $35,000; and received cash from the sale of
common stock of $145,000. During the same year, cash was paid out to purchase inventory for
$335,000, to employees for $230,000, and for the purchase of plant assets of $190,000. Calculate
the amount of cash provided by or used for operating activities by the direct method.
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