Question
During a recent year, Nicoles Getaway Spa (NGS) reported net income of $2,950. The company reported the following activities: Increase in inventory of $370. Depreciation
During a recent year, Nicoles Getaway Spa (NGS) reported net income of $2,950. The company reported the following activities:
Increase in inventory of $370.
Depreciation of $2,700.
Increase of $2,140 in prepaid expenses.
Payments of $4,300 on long-term debt.
Purchased new spa equipment for $7,552.
Payments on accounts payable exceeded purchases by $290.
Collections on accounts receivable exceeded credit sales by $829.
Issued $11,000 of common stock.
Required: Based on this information, prepare a statement of cash flows for the year ended December 31 using the indirect method. Assume the cash balance at the beginning of the year was $6,700. (Amounts to be deducted should be indicated with a minus sign.)
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