Net Income for the Frost Company for the Most Recent

Essay

Net income for the Frost Company for the most recent year was $150,000, consisting of $875,000 of revenues, $360,000 of cost of goods sold, and $365,000 of operating expenses. The following changes in current assets and current liabilities have been identified:

Required:
Calculate the cash flows from operating activities for the year, applying the direct method. Identify the individual amounts that would be disclosed in the statement of cash flows where possible.