Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The income statement of Marin Company is shown below. MARIN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,870,000 Cost of

The income statement of Marin Company is shown below.

MARIN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020

Sales revenue

$6,870,000

Cost of goods sold

Beginning inventory

$1,920,000

Purchases

4,370,000

Goods available for sale

6,290,000

Ending inventory

1,600,000

Cost of goods sold

4,690,000

Gross profit

2,180,000

Operating expenses

Selling expenses

450,000

Administrative expenses

700,000

1,150,000

Net income

$1,030,000

Additional information:

1. Accounts receivable decreased $400,000 during the year.
2. Prepaid expenses increased $160,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $260,000 during the year.
4. Accrued expenses payable decreased $110,000 during the year.
5. Administrative expenses include depreciation expense of $60,000.

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

image text in transcribed

Prepare the operating activities section of the statement of cash flows using the direct method, MARIN COMPANY statement of Cash Flows (Partial) eTextbook and Media Save for lates

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Practice Of Modern Internal Auditing

Authors: Lawrence B Sawyer

2nd Edition

0894130927, 978-0894130922

More Books

Students also viewed these Accounting questions

Question

Identify the components of an invest- ment policy statement.

Answered: 1 week ago

Question

What must a creditor do to become a secured party?

Answered: 1 week ago

Question

When should the last word in a title be capitalized?

Answered: 1 week ago

Question

Choose an appropriate organizational pattern for your speech

Answered: 1 week ago

Question

Writing a Strong Conclusion

Answered: 1 week ago