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Macgregor Company completed its first year of operations on December 31, 2020. Its initial income statement showed that Macgregor had revenues of $192,000 and operating expenses of $78,000. Accounts receivable and accounts payable at year-end were $60,000 and $23,000, respectively. Assume that accounts payable related to operating expenses. Ignore income taxes. Compute net cash provided by operating activities using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash provided by operating activities

Sagot :

ayokenny2001

Answer:

See nelow

Explanation:

We will start off with the computation of cash receipts from suppliers and cash paid to suppliers

Revenues

$192,000

Less:

Accounts receivables

($60,000)

Cash receipts from customers

$132,000

Operating expenses

$78,000

Less: Accounts payable

($23,000)

Cash paid to suppliers

$55,000

Cash flow from operating activities

Cash receipts from customers

$132,000

Less:

Cash paid to suppliers

($55,000)

Net cash from operating activities

$77,000

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