Question 3 The income statement for Cullumber Ltd., a private company following ASPE, is presented here CULLUMBER LTD. Income Statement Year Ended November 30, 2018 Sales $8,000,000 Cost of goods sold 4,500,000 Gross profit 3,500,000 Operating expenses 2,010,000 Income from operations 1,490,000 Interest expense 125,000 Income before income tax 1,365,000 Income tax expense 320,000 Net Income $1,045,000 Additional information: 1. 2. 3. 4. 5. 6. Operating expenses include $77,000 of depreciation expense and a $105,000 impairment loss on property, plant, and equipment Accounts receivable Increased by $189,000. Inventory decreased by $55,000. Prepaid expenses related to operating expenses increased by $48,000. Accounts payable to suppliers of merchandise decreased by $190,000 Accrued liabilities related to operating expenses decreased by $99,000 signment PRINTER VERSION BACK Net Income $1,045,000 Additional information: "1. Operating expenses include $77,000 of depreciation expense and a $105,000 impairment loss on property, plant, and equipment. 2. Accounts receivable increased by $189,000. 3. Inventory decreased by $55,000. 4. Prepaid expenses related to operating expenses increased by $48,000. 5. Accounts payable to suppliers of merchandise decreased by $190,000. Accrued liabilities related to operating expenses decreased by $99,000 7. Interest payable decreased by $19,000 8. Unearned revenue that was received from customers decreased by $20,000 9. Income tax payable increased by $22,000. 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 -15,000 or in parenthesis g. (15,000). CULLUMBER LTD. Statement of Cash Flows (Partial)-Indirect Method Year Ended November 30, 2018 Operating activities Adjustments to reconcile net income to PRINTER VERSION BACK Prepare the operating activities section of the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a - signe - 15,000 or in parenthesis e.g. (15,000).) CULLUMBER LTD. Statement of Cash Flows (Partial)-Indirect Method Year Ended November 30, 2018 Operating activities Adjustments to reconcile net income to RESOURCES 2. (Ch 11- by Study Question Attemp ALLA