HI! I require assistance with this question and please provide explanations because it’s not a strong topic of mine (Cash flows using the direct method)
The question: Leslie Mills Pty Ltd completed its first year of operations on 30 June 2012. Its income statement showed that the business had revenues of $170 000 and operating expenses of $80 000 including Bad Debts Expense of $1000. Accounts Receivable and Accounts Payable at year-end were $43 000 and $33 000, respectively. Assume that accounts payable related to operating expenses. Ignore income tax. The Allowance for Doubtful Debts is $1000. There has been no direct write-off of accounts receivable.Required: Calculate net cash provided by operating activities using the direct method.
Required: Calculate net cash provided by operating activities using the direct method.