The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following: (a) If sales for the current year were $\$ 695,000$ and accounts receivable decreased by $\$ 43,500$ during the year, what was the amount of cash received from customers?
(b) If income tax expense for the current year was $\$ 56,000$ and income tax payable decreased by $\$ 5,200$ during the year, what was the amount of cash payments of income tax?

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The Answer of The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following: (a) If sales for the current year were $\$ 695,000$ and accounts receivable decreased by $\$ 43,500$ during the year, what was the amount of cash received from customers?
(b) If income tax expense for the current year was $\$ 56,000$ and income tax payable decreased by $\$ 5,200$ during the year, what was the amount of cash payments of income tax?

The Cash Flows from Operating Activities Are Reported by the Direct