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The income statement of Nash Company is shown below. NASH COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,980,000 Cost of


The income statement of Nash Company is shown below.

NASH COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2017

Sales revenue

$6,980,000

Cost of goods sold
   Beginning inventory

$1,850,000

   Purchases

4,580,000

   Goods available for sale

6,430,000

   Ending inventory

1,570,000

   Cost of goods sold

4,860,000

Gross profit

2,120,000

Operating expenses
   Selling expenses

410,000

   Administrative expenses

760,000

1,170,000

Net income

$950,000


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 $260,000 during the year.
4. Accrued expenses payable decreased $120,000 during the year.
5. Administrative expenses include depreciation expense of $70,000.


Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Nash Company, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

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