The Cash Flows from Operating Activities Are Reported by the Direct

Short Answer

The cash flows from operating activities are reported by the direct method on the statement of cash
flows.
1)2)Determine the following:
If sales for the current year were $695,000 and accounts receivable decreased by $43,500 during the year, what was the amount of cash received from customers?
If income tax expense for the current year was $56,000 and income tax payable
decreased by $5,200 during the year, what was the amount of cash payments of income tax?