The income statement and a partial balance sheet of Hart Alloy Company for the year ended December 31, 2017 is presented below

Prepare the operating activities section of the statement of cash flows using the direct method. Accrued Liabilities relate to miscellaneous operating expenses.

Hart Alloy Company
Income Statement
For the Year Ended December 31, 2017

Sales Revenues $1,500,000
Cost of Goods Sold 1,170,000
Gross Profit $330,000
Operating Expenses:
Salaries Expense $210,000
Depreciation Expense 60,000
Miscellaneous Expenses 30,000 300,000
Net Income $30,000

Hart Alloy Company
Partial Balance Sheet
2017 2016
Cash $240,000 $195,000
Accounts Receivable (net) 150,000 150,000
Inventories 306,000 258,000
Accrued Liabilities 13,500 15,000
Accounts Payable Merchandise Inventory) 174,000 153,000
Salaries Payable 22,500 18,000

What will be an ideal response

Hart Alloy Company
Partial Statement of Cash Flows
For the Year Ended December 31, 2017

Cash Flows from Operating Activities:
Receipts
Collections from Customers 1,500,000
Payments
To Suppliers $(1,228,500 )
To Employees (205,500 )
Total Cash Payments (1,434,000 )
Net Cash Provided by Operating Activities $66,000 .Accounts Receivable, beginning balance $150,000
Add: Sales Revenue 1,500,000
Less: Accounts Receivable, ending balance (150,000 )
Collection from Customers $1,500,000

Merchandise Inventory, ending balance 306,000
Add: Cost of Goods Sold 1,170,000
Less: Merchandise Inventory, beginning balance (258,000 )
Purchases 1,218,000
Add: Accounts Payable, beginning balance 153,000
Less: Accounts Payable, ending balance (174,000 )
Cash Paid for Merchandise Inventory $1,197,000

Accrued Liabilities, beginning balance 15,000
Add: Miscellaneous Operating Expenses 30,000
Less: Accrued Liabilities, ending balance (13,500 )
Cash Paid for Operating Expenses $31,500

Salaries Payable, beginning balance 18,000
Add: Salary Expense $210,000
Less: Salaries Payable, ending balance (22,500 )
Cash Paid to Employees $205,500