The income statement of Sage Company is shown below.

SAGE COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2017

Sales revenue$6,380,000

Cost of goods soldBeginning inventory$2,080,000

Purchases4,350,000

Goods available for sale6,430,000

Ending inventory1,460,000

Cost of goods sold4,970,000

Gross profit1,410,000

Operating expensesSelling expenses430,000

Administrative expenses670,000

1,100,000

Net income$310,000

Additional information:

1.Accounts receivable decreased $300,000during the year.2.Prepaid expenses increased $150,000during the year.3.Accounts payable to suppliers of merchandise decreased $280,000during the year.4.Accrued expenses payable decreased $110,000during 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 Sage 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).)

Question 30 The income statement of Sage Company is shown below. SAGE COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,380,000 Cost of goods sold Beginning inventory $2,080,000 Purchases 4,350,000 Goods available for sale 6,430,000 Ending inventory 1,460,000 Cost of goods sold 4,970,000 Gross profit 1,410,000 Operating expenses Selling expenses 430,000 Administrative expenses 670,000 1,100,000 Net income $310,000 Additional information: . Accounts receivable decreased $300,000 during the year. 2. Prepaid expenses increased $150,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $280,000 during the year. 4. Accrued expenses payable decreased $110,000 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 Sage 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).)flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) SAGE COMPANY Statement of Cash Flows (Partial) S Adjustments to reconcile net income to