The income statement of Tina Maria Company is shown below:

Additional information:
1. Accounts receivable increased \(\$ 510,000\) during the year.
2. Prepaid expenses increased \(\$ 170,000\) during the year.
3. Accounts payable to merchandise suppliers increased \(\$ 50,000\) during the year.
4. Accrued expenses payable decreased \(\$ 180,000\) during the year.
\section*{Instructions}
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 1996, for Tina Maria Company, using the indirect method.

Transcribed Image Text:

Sales TINA MARIA COMPANY Income Statement For the Year Ended December 31, 1996 $7,100,000 Cost of goods sold Beginning inventory $1,700,000 Purchases 5,430,000 Goods available for sale 7,130,000 Ending inventory 1,920,000