The income statement for the Mendelin Corporation is as follows:

Revenues $ $395,000$

Less: Cost of goods sold:

Beginning inventory $ $49,000$

Purchases $182,000$

Ending inventory $(30,000)(201,000)$

Less: Patent amortization $(17,000)$

Advertising $(13,500)$

Depreciation expense $(55,000)$

Wages expense $(31,500)$

Insurance expense $(11,000)$

Bad debt expense $(6,300)$

Interest expense $(7,800)$

Net income $ $51,900$

Additional information is as follows:

A$.$ Interest expense includes $$2,000$ of discount amortization.

B$.$ The prepaid insurance expense account decreased by $$1,800$ during the year.

C$.$ Wages payable decreased by $$3,300$ during the year.

D$.$ Accounts payable increased by $$8,000($this account is for purchase of merchandise only$).$

E$.$ Accounts receivable increased by $$9,900($net of allowance for doubtful accounts$).$

F$.$ Inventory decreased by $$15,500.$

 

 

Required:

Prepare a schedule of operating cash flows using the indirect method.

Refer to the list below for the exact wording of an amount description within your Statement of Cash Flows.

Amount Descriptions

Decrease in accounts payable

Decrease in accounts receivable

Decrease in inventory

Decrease in prepaid insurance

Decrease in wages payable

Depreciation expense

Discount amortization

Increase in accounts payable

Increase in accounts receivable

Increase in inventory

Increase in prepaid insurance

Increase in wages payable

Net cash from operating activities

Net income

Net loss

Patent amortization

Prepare a schedule of operating cash flows using the indirect method. $($Note: Use a minus sign to indicate any decreases in cash or cash outflows. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.$)$

Mendelin Corporation

Operating Cash Flows Using the Indirect Method

$1$

Cash flows from operating activities:

$2$

$3$

Add $($deduct$)$ adjusting items:

$4$

$5$

$6$

$7$

$8$

$9$