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Exercise 23-4 The income statement of Marigold Company is shown below. Additional information: 1. Accounts receivable decreased $370,000 during the year. 2. Prepaid expenses increased
Exercise 23-4
The income statement of Marigold Company is shown below.
Additional information:
1. | Accounts receivable decreased $370,000 during the year. | |
2. | Prepaid expenses increased $160,000 during the year. | |
3. | Accounts payable to suppliers of merchandise decreased $250,000 during the year. | |
4. | Accrued expenses payable decreased $90,000 during the year. | |
5. | Administrative expenses include depreciation expense of $70,000. |
Prepare the operating activities section of the statement of cash flows using the direct method.
MARIGOLD COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,850,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold $1,920,000 4,410,000 6,330,000 1,600,000 4,730,000 2,120,000 Gross profit Operating expenses Selling expenses Administrative expenses 450,000 1,150,000 $970,000 700,000 Net income MARIGOLD COMPANY Statement of Cash Flows (Partial)Step by Step Solution
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