Problem - Computation of Operating Activities-Direct Method
Situation A: Chenowith Co. reports revenues of $200,000 and operating expenses of $110,000 in its first year of operations, 2010. Accounts receivable and accounts payable at year-end were $71,000 and $39,000, respectively. Assume that the accounts payable related to operating expenses. Ignore income taxes.
Instructions - Using the direct method, compute net cash provided (used) by operating activities and is it provided or used?