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The income statement of Star Vision Co. is presented here. Star Vision Co. Income Statement For the Year Ended November 30, 2020 Sales Revenue 7500000
The income statement of Star Vision Co. is presented here.
Star Vision Co. | |||
Income Statement | |||
For the Year Ended November 30, 2020 | |||
Sales Revenue | 7500000 | ||
Cost of goods sold | |||
Beginning inventory | 1900000 | ||
Purchases | 4400000 | ||
Goods available for sale | 6300000 | ||
Ending inventory | 1400000 | ||
Total cost of goods sold | 4900000 | ||
Gross profit | 2600000 | ||
Operating expenses | 1150000 | ||
Net income | 1450000 |
Additional information:
- Accounts receivable increased $200,000 during the year, and inventory decreased $500,000.
- Prepaid expenses increased $175,000 during the year.
- Accounts payable to suppliers of merchandise decreased $340,000 during the year.
- Accrued expenses payable decreased $105,000 during the year.
- Operating expenses include depreciation expense of $85,000.
Instructions:
Prepare the operating activities section of the Star Vision Co. statement of cash flows for the year ended November 30, 2020 using the indirect method.
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