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Problem 13-2A a The income statement for Ivanhoe Ltd., a private company following ASPE, is presented here: IVANHOE LTD. Income Statement Year Ended November 30,
Problem 13-2A a
The income statement for Ivanhoe Ltd., a private company following ASPE, is presented here:
IVANHOE LTD. Income Statement Year Ended November 30, 2018 | |||
Sales | $8,100,000 | ||
Cost of goods sold | 4,300,000 | ||
Gross profit | 3,800,000 | ||
Operating expenses | 2,040,000 | ||
Income from operations | 1,760,000 | ||
Interest expense | 150,000 | ||
Income before income tax | 1,610,000 | ||
Income tax expense | 400,000 | ||
Net income | $1,210,000 |
Additional information:
1. | Operating expenses include $79,000 of depreciation expense and a $103,000 impairment loss on property, plant, and equipment. | ||
2. | Accounts receivable increased by $187,000. | ||
3. | Inventory decreased by $55,000. | ||
4. | Prepaid expenses related to operating expenses increased by $42,000. | ||
5. | Accounts payable to suppliers of merchandise decreased by $189,000. | ||
6. | Accrued liabilities related to operating expenses decreased by $90,000. | ||
7. | Interest payable decreased by $10,000. | ||
8. | Unearned revenue that was received from customers decreased by $21,000. | ||
9. | Income tax payable increased by $28,000. |
(a) (a) Prepare the operating activities section of the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
IVANHOE LTD. Statement of Cash Flows (Partial)-Indirect Method Year Ended November 30, 2018 | ||
Operating activities | ||
Adjustments to reconcile net income to |
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