The income statement of Nash Company is shown below. NASH COMPANY INCOME STATEMENT FOR THE YEAR ENDED
Fantastic news! We've Found the answer you've been seeking!
Question:
The income statement of Nash Company is shown below.
NASH COMPANY | ||||
Sales revenue | $6,980,000 | |||
Cost of goods sold | ||||
Beginning inventory | $1,850,000 | |||
Purchases | 4,580,000 | |||
Goods available for sale | 6,430,000 | |||
Ending inventory | 1,570,000 | |||
Cost of goods sold | 4,860,000 | |||
Gross profit | 2,120,000 | |||
Operating expenses | ||||
Selling expenses | 410,000 | |||
Administrative expenses | 760,000 | 1,170,000 | ||
Net income | $950,000 |
Additional information:
1. | Accounts receivable decreased $300,000 during the year. | |
2. | Prepaid expenses increased $170,000 during the year. | |
3. | Accounts payable to suppliers of merchandise decreased $260,000 during the year. | |
4. | Accrued expenses payable decreased $120,000 during the year. | |
5. | Administrative expenses include depreciation expense of $70,000. |
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Nash Company, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date: