Question

Russell Co. reports sales revenue of $30,600 and interest revenue of $5,600. Its comparative balance sheet shows that accounts receivable decreased $4,600 and interest receivable increased $1,150. Compute cash provided by operating activities using the direct method

Answer 1

Answer:

Cash provided by operating activities $39,650

Explanation:

The computation of the cash provided by operating activities under the direct method is as follows:

Sales Revenue     $30,600

Decrease in Account Receivable $4,600

Interest Revenue $5,600

Increase in Interest Receivable - $1,150

Cash provided by operating activities $39,650

We simply applied the above sequence so that the correct value could come

And, the same is to be considered