Data for Munsun Company are presented in P12-3A.

In P12-3A,

The income statement of Munsun Company is presented

Instructions
Prepare the operating activities section of the statement of cash flows using the direct 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