Answer:
Cash flow :
For Case A = $27,450
Case B = $14,000
Case C = $25,000
Explanation:
As per the data given in the question,
Case A Case B Case C
Cash collected from customers $712,000 $555,000 $97,500
Cash payment to suppliers -$40,000 -$25,500 -$65,200
Cash payment for operating expense -$3,750 -$16,000 -$7,300
Net cash provided by operating activities $27,450 $14,000 $25,000
Where,
Cash received from customers = Net sales + dec. in account receivable - inc. in accounts receivable
Cash paid to suppliers = COG sold + inc. in inventory + dec. in accounts payable - dec. in inventory - inc. in accounts payable
Cash paid for operating expense = operating expense - Depreciation + inc. in prepaid expense + dec. in accrued expenses payable - inc. in accounts payable - inc. in accrued expenses payable
