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Converting from Cash Flows to Revenues and Expenses
Determine the amounts of revenue or expense associated with each of the following cash flows:
1. Cash received from customers was $8.5 million; accounts receivable increased by $1.6 million.
2. Paid salaries of $3 million; salaries payable decreased by $.6 million.
3. Paid cash of $4.5 million to suppliers; supplier accounts payable increased by $.5 million. Inventories decreased by $1 million.
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