The income statement of Asquith Company is presented on the next page.
Additional information:
1. Accounts receivable decreased $230,000 during the year, and inventory increased $120,000.
2. Prepaid expenses increased $125,000 during the year.
3. Accounts payable to merchandise suppliers increased $50,000 during the year.
4. Accrued expenses payable increased $155,000 during the year.

Instructions
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2014, for Asquith Company, using the indirectmethod.

Transcribed Image Text:

Asquith Company Income Statement For the Year Ended December 31, 2014 Sales revenle $5,250,000 Cost of goods sold $1,780,000 3,430,000 5,210,000 1,900,000 Beginning inventory Purchases Goods available for sale Ending inventory Total cost of goods sold Gross profit Operating expenses 3,310,000 1,940,000 Depreciation expense Amortization expense Other expenses 95,000 20,000 945,000 1,060,000 Net income 880,000