The income statement of Bonita Company is shown below. Bonita Company Income Statement For the Year...

Transcribed Image Text:

The income statement of Bonita Company is shown below. Bonita Company Income Statement For the Year Ended December 31, 2025 Sales revenue $7,430,000 Cost of goods sold Beginning inventory $2,090,000 Purchases 4,770,000 Goods available for sale 6,860,000 Ending inventory 1,440,000 Cost of goods sold 5,420,000 Gross profit 2,010,000 Operating expenses Selling expenses 440,000 Administrative expenses 690,000 1,130,000 Net income $880,000 Additional information: 1. Accounts receivable decreased $350,000 during the year. 2. Prepaid expenses increased $150,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $260,000 during the year. 4. 5. Accrued expenses payable decreased $130,000 during the year. Administrative expenses include depreciation expense of $60,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 202 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthes Partial Statement of Cash FlOWS Adjustments to reconcile net income to $ The income statement of Bonita Company is shown below. Bonita Company Income Statement For the Year Ended December 31, 2025 Sales revenue $7,430,000 Cost of goods sold Beginning inventory $2,090,000 Purchases 4,770,000 Goods available for sale 6,860,000 Ending inventory 1,440,000 Cost of goods sold 5,420,000 Gross profit 2,010,000 Operating expenses Selling expenses 440,000 Administrative expenses 690,000 1,130,000 Net income $880,000 Additional information: 1. Accounts receivable decreased $350,000 during the year. 2. Prepaid expenses increased $150,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $260,000 during the year. 4. 5. Accrued expenses payable decreased $130,000 during the year. Administrative expenses include depreciation expense of $60,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 202 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthes Partial Statement of Cash FlOWS Adjustments to reconcile net income to $