Problem 13-9

Below is an income statement for Roger Products for the year ended December 31, 2017, and a schedule listing the companys current assets and current liabilities at the end of 2016 and 2017:

Roger Products Income Statement For the Year Ended December 31, 2017
Sales					$131,700
Cost of goods sold					55,314
Gross profit					76,386
Operating expenses:
	Selling & general expenses		$12,100
	Depreciation expense		2,520		14,620
Operating income					61,766
Loss on sale of land					3,246
Income before income tax					58,520
Income tax expense					20,482
	Net income				$38,038

Schedule of Current Assets and Current Liabilities		December 31, 2016			December 31, 2017
Cash		$12,200			$14,400
Accounts receivable		3,350			4,510
Inventory		5,860			6,420
Prepaid expenses		2,800			2,390
Accounts payable		1,690			2,350
Accrued liabilities		2,600			1,980

Prepare the operating activities section of the statement of cash flows using the indirect method. (Enter amounts that decrease cash flow either with a negative sign preceding the number, e.g. -15,000 or parenthesis e.g. (15,000).)

Roger Products Partial Statement of Cash flows Indirect method December 31, 2017For the Month Ended December 31, 2017For the Year Ended December 31, 2017
Operating activities
Decrease in accounts payableIncrease in accounts receivableIncrease in prepaid expensesLoss on sale of landIncrease in inventoryDepreciation expenseNet IncomeNet cash used in operating activitiesGain on sale of landIncrease in accrued liabilitiesDecrease in accrued liabilitiesDecrease in accounts receivableDecrease in inventoryIncrease in accounts payableDecrease in prepaid expensesNet cash provided by operating activitiesAdjustment of net income to cash basis		$
Increase in inventoryDecrease in inventoryIncrease in accounts receivableNet cash provided by operating activitiesNet cash used in operating activitiesDecrease in accounts payableDecrease in accrued liabilitiesLoss on sale of landIncrease in accounts payableDecrease in accounts receivableAdjustment of net income to cash basisIncrease in prepaid expensesDepreciation expenseGain on sale of landDecrease in prepaid expensesIncrease in accrued liabilitiesNet Income :
Increase in accounts receivable Net cash used in operating activities Decrease in accounts receivable Increase in accrued liabilities Decrease in accrued liabilities Increase in accounts payable Net cash provided by operating activities Increase in inventory Decrease in inventory Decrease in accounts payable Increase in prepaid expenses Gain on sale of land Adjustment of net income to cash basis Net Income Decrease in prepaid expenses Depreciation expense Loss on sale of land
Decrease in prepaid expenses Decrease in accounts payable Increase in accounts receivable Increase in accrued liabilities Decrease in accrued liabilities Net cash provided by operating activities Decrease in accounts receivable Net cash used in operating activities Gain on sale of land Depreciation expense Increase in prepaid expenses Net Income Adjustment of net income to cash basis Increase in inventory Loss on sale of land Decrease in inventory Increase in accounts payable
Decrease in prepaid expenses Increase in prepaid expenses Increase in accounts payable Net cash used in operating activities Increase in accounts receivable Decrease in accrued liabilities Increase in accrued liabilities Net Income Net cash provided by operating activities Adjustment of net income to cash basis Depreciation expense Increase in inventory Gain on sale of land Loss on sale of land Decrease in inventory Decrease in accounts payable Decrease in accounts receivable
Increase in prepaid expenses Decrease in inventory Increase in inventory Net cash used in operating activities Increase in accounts payable Net Income Loss on sale of land Adjustment of net income to cash basis Depreciation expense Decrease in accounts payable Decrease in accrued liabilities Gain on sale of land Decrease in prepaid expenses Increase in accrued liabilities Net cash provided by operating activities Increase in accounts receivable Decrease in accounts receivable
Depreciation expense Gain on sale of land Loss on sale of land Increase in accounts receivable Net cash used in operating activities Net cash provided by operating activities Decrease in accounts receivable Increase in inventory Decrease in inventory Increase in accounts payable Decrease in accounts payable Net Income Increase in prepaid expenses Adjustment of net income to cash basis Decrease in prepaid expenses Increase in accrued liabilities Decrease in accrued liabilities
Net cash provided by operating activities Decrease in inventory Increase in inventory Decrease in accounts payable Decrease in prepaid expenses Net cash used in operating activities Decrease in accrued liabilities Increase in accounts payable Net Income Loss on sale of land Gain on sale of land Adjustment of net income to cash basis Increase in prepaid expenses Depreciation expense Increase in accounts receivable Decrease in accounts receivable Increase in accrued liabilities
Gain on sale of land Decrease in accrued liabilities Increase in accrued liabilities Adjustment of net income to cash basis Increase in accounts payable Net cash provided by operating activities Depreciation expense Loss on sale of land Decrease in inventory Increase in prepaid expenses Increase in inventory Net cash used in operating activities Net Income Increase in accounts receivable Decrease in accounts receivable Decrease in accounts payable Decrease in prepaid expenses
Increase in accrued liabilitiesDecrease in accrued liabilitiesDecrease in inventoryIncrease in accounts payableLoss on sale of landAdjustment of net income to cash basisNet IncomeDepreciation expenseGain on sale of landNet cash provided by operating activitiesIncrease in accounts receivableDecrease in prepaid expensesIncrease in prepaid expensesDecrease in accounts receivableDecrease in accounts payableNet cash used in operating activitiesIncrease in inventory		$