Brief Exercise 23-5

Skysong Corporation had the following 2017 income statement.

Sales revenue		$180,000
Cost of goods sold		115,000
Gross profit		65,000
Operating expenses (includes depreciation of $23,000)		54,000
Net income		$11,000

The following accounts increased during 2017: Accounts Receivable $13,000, Inventory $10,000, Accounts Payable $14,000. Prepare the cash flows from operating activities section of Skysongs 2017 statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Skysong Corporation Statement of Cash Flows-Indirect Method (Partial) For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Depreciation expense Decrease in Accounts Payable Increase in Accounts Payable