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NICOLE'S GETAWAY SPA Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities Changes in Current Assets and Current Liabilities
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During a recent year, Nicoles Getaway Spa (NGS) reported net income of $3,050. The company reported the following activities:
| a. | Increase in inventory of $350. |
| b. | Depreciation of $2,500. |
| c. | Increase of $2,120 in prepaid expenses. |
| d. | Payments of $4,100 on long-term debt. |
| e. | Purchased new spa equipment for $7,532. |
| f. | Payments on accounts payable exceeded purchases by $270. |
| g. | Collections on accounts receivable exceeded credit sales by $809. |
| h. | Issued $10,000 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 $6,500. (Amounts to be deducted should be indicated with a minus sign.) | |
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