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. Determine the following:
a. If sales for the current year were $800,000 and accounts receivable increased $36,000 during the year, what was the amount of cash received from customers?
b. If sales salaries expense for the current years was $110,000 and sales salaries payable decreased $30,000 during the year, what was the amount of cash payments for sales salaries?