The income statement of Munsun Company is presented here.

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 inventory 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, 2025, for Munsun Company, using the indirect method.

Transcribed Image Text:

Sales revenue Cost of goods sold Munsun Company Income Statement For the Year Ended November 30, 2025 Beginning inventory Purchases Goods available for sale Ending inventory Total cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses Net income $1,900,000 4,400,000 6,300,000 1,600,000 450,000 700,000 $7,600,000 4,700,000 2,900,000 1,150,000 $1,750,000