The income statement of Toby Zed NV is presented here.

Additional information:

1. Accounts receivable increased €200,000 during the year, and inventory decreased €500,000.

2. Prepaid expenses increased €175,000 during the year.

3. Accounts payable to suppliers of merchandise decreased €340,000 during the year.

4. Accrued expenses payable decreased €105,000 during the year.

5. Operating expenses include depreciation expense of €85,000.

Instructions

Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2020, for Toby Zed, using the indirect method.

Transcribed Image Text:

Toby Zed NV Income Statement For the Year Ended November 30, 2020 Sales revenue €7,500,000 Cost of goods sold Beginning inventory €1,900,000 4,400,000 Purchases Goods available for sale 6,300,000 Ending inventory 1,400,000 Total cost of goods sold 4,900,000 Gross profit Operating expenses 2,600,000 1,150,000 Net income €1,450,000