Chapter 13, Problem 13.14BE

To determine

Cash flows from operating activities:

These refer to the cash received or cash paid in day-to-day operating activities of a company.

Direct method:

This method uses the basis of cash for preparing the cash flows statement. In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.

Cash Payments:

Cash payments encompass all the cash payments that are made to suppliers of goods and all expenses that are paid.

To determine: The amount of cash payments for operating expenses in 2017.