Description

P14-1A - The income statement of Noah's Ark is shown below.

NOAH'S ARK
Income Statement
For the Year Ended November 30, 2006
Sales		$6,800,000
Cost of goods sold
Beginning inventory	$2,000,000
Purchases	4,300,000
Goods available for sale	6,300,000
Ending inventory	1,400,000
Cost of goods sold		4,900,000
Gross profit		1,900,000
Operating expenses
Selling expenses	450,000
Administrative expenses	600,000	1,050,000
Net income		$ 850,000

Additional information:

Accounts receivable decreased $230,000 during the year.

Prepaid expenses increased $150,000 during the year.

Accounts payable to suppliers of merchandise decreased $200,000 during the year.

Accrued expenses payable decreased $100,000 during the year.

Administrative expenses include depreciation expense of $90,000.

Instructions

Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2006, for Noah's Ark using the indirect method.

Typed answer