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The income statement of Vaughn Company is shown below. VAUGHN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,250,000 Cost of
The income statement of Vaughn Company is shown below. VAUGHN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,250,000 Cost of goods sold Beginning inventory $1,990,000 Purchases 4,470,000 Goods available for sale 6,460,000 Ending inventory 1,700,000 Cost of goods sold 4,760,000 Gross profit 1,490,000 Operating expenses Selling expenses 410,000 Administrative expenses 700,000 1,110,000 Net income $380,000 1. Accounts receivable decreased $280,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $250,000 during the year. 4. Accrued expenses payable decreased $110,000 during the year. 5. Administrative expenses include depreciation expense of $60,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Vaughn 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).) VAUGHN COMPANY Statement of Cash Flows (Partial) $ Adjustments to reconcile net income to
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