Truesdell Brewery Company uses the direct method for its statement of cash flow

Assume Accrued Liabilities relate to Operating Expenses. It reports the following information regarding the year ending December 31, 2017:

Truesdell Brewery Company
Income Statement
For the Year Ended December 31, 2017

Sales Revenue $312,000
Cost of Goods Sold 247,000
Operating expenses 32,500
Net Income $32,500

Truesdell Brewery Company
Partial Balance Sheet
2017 2016
Accounts Receivable (net) $19,500 $15,600
Merchandise Inventory 23,400 28,600
Accrued Liabilities 1,560 3,900
Accounts Payable (Merchandise Inventory) 15,600 9,100

Assume that there were no sales of long-term assets, no interest revenue, and no expenses other than the expenses shown above. Also, assume that Accounts Payable is for purchases of merchandise inventory only. Prepare the operating activities section of the statement of cash flows.

What will be an ideal response

Truesdell Brewery Company
Partial Statement of Cash Flows
For the Year Ended December 31, 2017

Cash Flows from Operating Activities
Receipts
Collections from Customers $308,100
Payments
To Suppliers (270,140 )
Total Cash Payments (270,140 )
Net Cash Provided by Operating Activities $37,960 .Accounts Receivable, beginning balance 15,600
Add: Sales Revenue 312,000
Less: Accounts Receivable ending balance (19,500 )
Collection from Customers $308,100

Merchandise Inventory, ending balance 23,400
Add: Cost of Goods Sold 247,000
Less: Merchandise Inventory, beginning balance (28,600 )
Purchases $241,800
Add: Accounts Payable, beginning balance 9,100
Less: Accounts Payable, ending balance (15,600 )
Cash Paid for Merchandise Inventory $235,300

Accrued Liabilities, beginning balance 3,900
Add: Operating Expenses 32,500
Less: Accrued Liabilities, ending balance (1,560 )
Cash Paid for Operating Expenses $34,840