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The income statement of Bonita Company is shown below. BONITA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,570,000 Cost of
The income statement of Bonita Company is shown below.
BONITA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 | ||||
Sales revenue | $6,570,000 | |||
Cost of goods sold | ||||
Beginning inventory | $1,870,000 | |||
Purchases | 4,350,000 | |||
Goods available for sale | 6,220,000 | |||
Ending inventory | 1,590,000 | |||
Cost of goods sold | 4,630,000 | |||
Gross profit | 1,940,000 | |||
Operating expenses | ||||
Selling expenses | 490,000 | |||
Administrative expenses | 680,000 | 1,170,000 | ||
Net income | $770,000 |
Additional information:
1. | Accounts receivable decreased $300,000 during the year. | |
2. | Prepaid expenses increased $170,000 during the year. | |
3. | Accounts payable to suppliers of merchandise decreased $250,000 during the year. | |
4. | Accrued expenses payable decreased $120,000 during the year. | |
5. | Administrative expenses include depreciation expense of $60,000. |
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Bonita Company, using the indirect method.
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