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Use the Income Statement and Additional Information presented below to determine Cash Flow from Operations : Income Statement For the Year Ended December 31, 2020
Use the Income Statement and Additional Information presented below to determine Cash Flow from Operations : Income Statement For the Year Ended December 31, 2020 Sales $7,100,000 Cost of Goods Sold: Beginning Inventory $1,700,000 Purchases Less: Ending Inventory_ Cost of Goods Sold 5,430,000 1,775,000 5,355,000 Gross Profit 1,745,000 Operating Expenses 1,000,000 Loss on Sale of Equipment (10,000) Net Income $ 735,000 Additional Information: 1. Accounts receivable increased $110,000 during the year. 2 Prepaid expenses increased $60,000 during the year 3. Accounts payable to merchandise suppliers increased $50,000 during the year. 4. Accrued expenses decreased $80,000 during the year. 5. Accumulated depreciation increased by $10,000 during the year. Equipment was sold during the year that had an original cost of $45,000 and accumulated depreciation of $22,000. Determine Cash Flow from Operating Activities: $
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