1. What question is direct format of statement of cash flows designed to reply?
2. What question is indirect format of the statement of cash flows designed to answer? Describe.
3. Following information is available for Sentry Company for first month of year.
|
Revenues
|
$ 17,000
|
|
Expenses
|
8,000
|
|
Increase in accounts receivable
|
800
|
|
Decrease in inventory
|
1,200
|
|
Decrease in supplies
|
400
|
|
Increase in accounts payable
|
1,050
|
|
Decrease in wages payable
|
900
|
|
Depreciation expense
|
1,100
|
|
Patent expense
|
250
|
Determine the cash flow from operating activities for the month.