Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The income statement of Pina Colada Corp. is presented here. Pina Colada Corp. Income Statement For the Year Ended November 30, 2022 Sales revenue $7,463,500

The income statement of Pina Colada Corp. is presented here.

Pina Colada Corp. Income Statement For the Year Ended November 30, 2022

Sales revenue

$7,463,500

Cost of goods sold

Beginning inventory

$2,030,200

Purchases

4,481,800

Goods available for sale

6,512,000

Ending inventory

1,768,500

Total cost of goods sold

4,743,500

Gross profit

2,720,000

Operating expenses

Selling expenses

448,000

Administrative expenses

705,000

1,153,000

Net income

$1,567,000

Additional information:

1. Accounts receivable decreased $405,000 during the year, and inventory decreased $261,700.
2. Prepaid expenses increased $183,900 during the year.
3. Accounts payable to suppliers of inventory decreased $331,300 during the year.
4. Accrued expenses payable decreased $108,900 during the year.
5. Administrative expenses include depreciation expense of $111,400.

Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2022, for Pina Colada Corp., 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).)

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_2

Step: 3

blur-text-image_3

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 Management System Auditors Handbook

Authors: Joe Kausek

1st Edition

087389670X, 978-0873896702

More Books

Students also viewed these Accounting questions

Question

c. What were you expected to do when you grew up?

Answered: 1 week ago

Question

d. How were you expected to contribute to family life?

Answered: 1 week ago

Question

e. What do you know about your ethnic background?

Answered: 1 week ago