The income statement of Munsun Company is presented

Additional information:
1. Accounts receivable decreased $380,000 during the year, and inventory decreased $300,000.
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 $110,000.
Instructions
Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2017, for Munsun Company, using the indirect method.

Transcribed Image Text:

MUNSUN COMPANY Income Statement For the Year Ended November 30, 2017 Sales revenue Cost of goods sold $7,600,000 Beginning inventory Purchases Goods available for sale Ending inventory 1,900,000 4,400,000 6,300,000 1,600,000 Total cost of goods sold Gross profit Operating expenses 4,700,000 2,900,000 Selling expenses Administrative expenses 450,000 700,000 1,150,000 $1,750,000 Net income