Question

The following information is taken from the 2015 general ledger of Swisher Company.

Rent Rent expense $48,990
Prepaid rent, January 1 5,710
Prepaid rent, December 31 9,100
Salaries Salaries and wages expense $54,240
Salaries and wages payable, January 1 10,720
Salaries and wages payable, December 31 8,960
Sales Sales revenue $169,980
Accounts receivable, January 1 16,160
Accounts receivable, December 31 6,950
In each case, compute the amount that should be reported in the operating activities section of the statement of cash flows under the direct method.
Cash payments for rent $_____
Cash payments for salaries $_____
Cash receipts from customers $_____

Answer 1

See below

Step-by-step explanation:

1. Cash payments for rent

= Rent expense + Ending prepaid rent - Beginning prepaid rent

= $48,990 + $9,100 - $5,710

= $52,380

2. Cash payments for salaries

= Salary expense + Beginning salaries payable - Ending salaries payable

= $54,240 + $10,720 - $8,960

= $56,000

3. Cash receipts from customers

= Sales revenue + Beginning accounts receivable - Ending account receivable

= $169,980 + $16,160 - $6,950

= $179,190