Prepare the operating activities section of the statement of cash flows using the direct method.

Exercise 23-4 Page 1 of 2 Print by: Kelly Casebier AC302: Intermediate Accounting III - 1602B-01 / AC302 Unit 9 HW Assignment *Exercise 23-4 Your answer is partially correct. Try again. The income statement of Vince Gill Company is shown below. VINCE GILL COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014 Sales revenue $6,901,360 Cost of goods sold Beginning inventory $1,897,290 Purchases 4,474,890 Goods available for sale 6,372,180 Ending inventory 1,603,370 4,768,810 Cost of goods sold Gross profit 2,132,550 Operating expenses Selling expenses 443,610 Administrative expenses 694,630 1,138,240 $994,310 Net income Additional information: 1. 2. 3. 4. 5. Accounts receivable decreased $317,920 during the year. Prepaid expenses increased $172,770 during the year. Accounts payable to suppliers of merchandise decreased $265,410 during the year. Accrued expenses payable decreased $117,480 during the year. Administrative expenses include depreciation expense of $64,260. Prepare the operating activities section of the statement of cash flows using the direct method. VINCE GILL COMPANY Statement of Cash Flows (Partial) For the Year Ended December 31, 2014 Cash Flows from Operating Activities Cash Receipts from Customers Cash Payments for Operating Expenses $ $ Cash Payments to Suppliers Net Cash Provided by Operating Activities $ Question Attempts: 1 of 3 used http://edugen.wiley.com/edugen/shared/assignment/test/qprint.uni 5/27/2016 Exercise 23-4 Page 2 of 2 Copyright 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wiley.com/edugen/shared/assignment/test/qprint.uni 5/27/2016