Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The income statement of Vaughn Company is shown below VAUGHN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,610,000 Cost of
The income statement of Vaughn Company is shown below VAUGHN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,610,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold $1,850,000 4,330,000 6,180,000 1,540,000 4,640,000 Gross profit Operating expenses 1,970,000 410,000 690,000 Selling expenses 1,100,000 $870,000 Administrative expenses Net income Additional information: 1. Accounts receivable decreased $320,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $240,000 during the year. 4. Accrued expenses payable decreased $130,000 during the year. 5. Administrative expenses include depreciation expense of $50,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, 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).)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started