QUESTION 31

1. Selected balance sheet information and the income statement for Pioneer Industries for the current year are presented below.

   Selected Balance Sheet Accounts

   Prior Year Current Year

   Accounts Receivable $24,000 $16,000

   Merchandise Inventory 32,000 35,200

   Prepaid Rent 1,600 0

   Accounts Payable 17,600 22,400

   Salaries and Wages Payable 3,200 4,800

   Income Statement

   Sales Revenue $480,000

   Expenses:

   Cost of Goods Sold 288,000

   Depreciation Expense 32,000

   Salaries Expense 48,000

   Rent Expense 19,200

   Insurance Expense 19,200

   Interest Expense 17,600

   Utilities Expense 16,000

   Net Income $40,000

   Required:

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