Question
The income statement of Splish Brothers Inc. is presented here. Splish Brothers Inc. Income Statement For the Year Ended November 30, 2020 Sales revenue $7,491,300
The income statement of Splish Brothers Inc. is presented here. Splish Brothers Inc. Income Statement For the Year Ended November 30, 2020 Sales revenue $7,491,300 Cost of goods sold Beginning inventory $1,801,400 Purchases 4,309,700 Goods available for sale 6,111,100 Ending inventory 1,419,800 Total cost of goods sold 4,691,300 Gross profit 2,800,000 Operating expenses 1,174,300 Net income $1,625,700 Additional information: 1. Accounts receivable increased $190,100 during the year, and inventory decreased $381,600. 2. Prepaid expenses increased $180,200 during the year. 3. Accounts payable to suppliers of merchandise decreased $347,600 during the year. 4. Accrued expenses payable decreased $104,100 during the year. 5. Operating expenses include depreciation expense of $89,000. Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2020, for Splish Brothers Inc., using the indirect method.
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