The independent cases are listed below that includes all items relevant to operating activities: Case A Case B Case C Sales revenue $ 70,000 $ 60,000 $ 101,000 Cost of goods sold 37,500 28,500 67,500 Depreciation expense 10,500 2,500 26,500 Salaries and wages expense 5,500 13,500 8,500 Net income (loss) 16,500 15,500 (1,500) Accounts receivable increase (decrease) (1,200) 4,500 3,500 Inventory increase (decrease) 2,500 0 (3,500) Accounts payable increase (decrease) 0 3,000 (1,200) Salaries and wages payable increase (decrease) 1,750 (2,500) 1,200 Compute cash flows from operating activities using the direct method. (Amounts to be deducted should be indicated with a minus sign.)

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