Answer:
$2,217
Explanation:
The preparation of the cash flows from operating activities using the direct method is shown below:
Cash flow from Operating Activities - Direct Method
Cash Receipt from Customers $20,850
(Sales revenue + reduction in Account receivable)
Less: Cash Payment to supplier -$9,129
(Cost of Goods sold - increment in Account payable + Increment in inventory)
Less: Cash Payment for Salaries -$4,142
(Salaries Expense - Increment in Salaries Payable)
Less: Cash Payment for Rent -$2,827
(Rent Expense - Increment in Rent Payable - reduction in Prepaid Rent)
Less: Cash Payment for Insurance -$935
(Insurance Expense + Increment in Prepaid Insurance)
Less: Cash Payment for Utilities -$870
(Utilities Expense - Increment in Utilities Payable)
Less: Cash Payments for Bond interest -$730
Net Cash Provided by Operating Activities $2,217
