Prepare Statement of Cash Flows, Indirect, IFRS. Use the information from E22-1 assuming Hockey Apparel Providers, Inc. is an IFRS reporter. Compute cash flows from operating activities for Hockey Apparel Providers under the indirect reporting format assuming Hockey reconciles operating income to operating cash flows.
In E22-1
Hockey Apparel Providers, Inc. provided the follow-ing information for the current year.
Simplified Income Statement Amount
Sales………………………………………………$ 2,452,000
Cost of Goods Sold……………………………… (251,000)
Depreciation Expense……………………………. (178,000)
Selling, General, and Administrative Expenses….. (558,000)
Operating Income………………………………… 465,000
Tax Expense………………………………………. (145,000)
Net Income……………………………………….. $ 320,000
Account Changes from the Balance Sheet
Decrease in Accounts Receivable………………… $ 29,000
Decrease in Inventory…………………………….. $ 43,000
Increase in Prepaid Expenses…………………….. $ 9,000
Decrease in Accounts Payable……………………. $ 34,000
Increase in Income Taxes Payable………………... $ 32,000