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.
Instructions
Compute net cash provided by operating activities using the direct method.
Solution
Macgregor Company
Statement of Cash Flows - direct Method (Partial)
For the Year Ended December 31, 2020
Statement of Cash Flows - direct Method (Partial)
For the Year Ended December 31, 2020
