Ch$.22$ Homework

Question $3$ of $5$

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The income statement of Pina

Question $3$ of $5$

$-120$

$\backslash$table$[[$Selling expenses,$430,000,],[$Administrative expenses,$700,000,1,130,000$Company is shown below.

Sales revenue

$$6,470,000$

Cost of goods sold

$\backslash$table$[[$Beginning inventory,$$2,050,000,],[$Purchases$,4,300,000,],[$Goods available for sale,$6,350,000,],[$Ending inventory,$1,650,000,],[$Cost of goods sold,,$4,700,000$ Additional information:

Accounts receivable decreased $$290,000$ during the year.

Prepaid expenses increased $$170,000$ during the year.

Accounts payable to suppliers of merchandise decreased $$280,000$ during the year.

Accrued expenses payable decreased $$130,000$ during the year.

Administrative expenses include depreciation expense of $$70,000.$

Prepare the operating activities section of the statement of cash flows for the year ended December $31,2025,$ for Pina Company,

using the indirect method. $($Show amounts that decrease cash flow with either a $-$ sign e$.$g$.-15,000$ or in parenthesis e$.$g$.(15,000)).)$

PINA COMPANY

Partial Statement of Cash Flows