Financial Statement Analysis HOLLOWAY INDUSTRIES – CASH FLOW FROM OPERATIONS Direct Method $$ Cash Inflows Sales Less: increase in A/R Cash collected from customers Direct cash outflows Cost of goods sold Add: decrease in inventory Purchases Add: increase in A/P Cash paid to suppliers Operating expense (wages) Less: decrease in salaries payable Cash paid to employees LOS 33 b compute and interpret a statement of cash flows, using the direct method and the indirect method; LOS 32 c calculate and interpret, using the indirect method, the net cash provided or used by operating activities;
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