Explanation:
The preparation of the cash flows from operating activities section is shown below:-
Working note:-
Sales $330
Add Decrease in Accounts Receivables $7
Cash collected from customers $337
Cost of goods sold $130
Add Increase in inventory $13
Less Increase in accounts payable $19
Paid cash to suppliers $124
Salary expenses $41
Less Increase in payable salaries $7
Paid cash to employees $34
Insurance expenses $21
Less Decrease in prepaid insurance $5
Paid cash for insurance $16
Income tax expenses $65
Less Increase in income tax payable $11
Paid cash for income tax $54
Interest expenses $13
Less Decrease in bond expenses $2
Paid cash for interest expense $11
Statement of Cash Flow
Cash collected from customers $337
Gain on sale of cash equivalents $3
less: Paid cash to suppliers $124
less: Paid cash to employees $34
less: Paid cash to insurance $16
less: Paid cash for interest $11
less: Paid cash for income tax $54
Net cash provided by operating activities $101
