The income statement of Hauser Company is presented on the next page.

Additional information:

1. Accounts receivable decreased $290,000 during the year, and inventory increased

$140,000.

2. Prepaid expenses increased $175,000 during the year.

3. Accounts payable to merchandise suppliers increased $63,000 during the year.

4. Accrued expenses payable increased $145,000 during the year.

Instructions Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2012, for Hauser Company, using the indirect method.

Transcribed Image Text:

Sales HAUSER COMPANY Income Statement For the Year Ended December 31, 2012 $5,200,000 Cost of goods sold Beginning inventory $1,780,000 Purchases 3,430,000 Goods available for sale 5,210,000 Ending inventory 1,920,000 Total cost of goods sold 3,290,000 Gross profit 1,910,000 Operating expenses Selling expenses 420,000 Administrative expense 525,000 Depreciation expense 105,000 Amortization expense 15,000 1,065,000 Net income $ 845,000