The income statement of Grider Company is presented here.

Additional information:
1. Accounts receivable increased $300,000 during the year, and inventory decreased $500,000.
2. Prepaid expenses increased $150,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $350,000 during the year.
4. Accrued expenses payable decreased $100,000 during the year.
5. Administrative expenses include depreciation expense of $80,000.
Instructions
Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2010, for Grider Company, using the indirectmethod.

Transcribed Image Text:

GRIDER COMPANY Income Statement For the Year Ended November 30, 2010 Sales Cost of goods sold $7,700,000 Beginning inventory Purchases Goods available for sale Ending inventory $1,900,000 4,400,000 6,300,000 1,400,000 Total cost of goods sold Gross profit Operating expenses 4,900,000 2,800,000 Selling expenses Administrative expenses 450,000 700,000 1,150,000 1,650,000 Net income