The income statement of Guesser Company is shown below.

Additional information:
1. Accounts receivable decreased $63,000 during the year.
2. Inventory increased $38,000 during the year.
3. Prepaid expenses increased $12,000 during the year.
4. Accounts payable to increased $25,000 during the year.
5. Accrued expenses payable increased $6,000 during the year.
6. Administrative expenses include depreciation expense of $20,000.

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

Transcribed Image Text:

GUESSER COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014 Sales Cost of goods sold Gross proft $755,000 543,000 212,000 Operating expenses Selling expenses Administrative expenses $52,000 89,000 141,000 S 71,000 Net income