The income statement of Toby Zed NV is presented here. Additional information: 1. Accounts receivable increased 200,000

Question:

The income statement of Toby Zed NV is presented here.

Toby Zed NV Income Statement For the Year Ended November 30, 2020 €7,500,000 Sales revenue Cost of goods sold Beginnin

Additional information:
1. Accounts receivable increased €200,000 during the year, and inventory decreased €500,000.
2. Prepaid expenses increased €175,000 during the year.
3. Accounts payable to suppliers of merchandise decreased €340,000 during the year.
4. Accrued expenses payable decreased €105,000 during the year.
5. Operating expenses include depreciation expense of €85,000.

Instructions
Prepare the operating activities section of the statement of cash flows for the year ended November 30, 020, for Toby Zed, using the indirect method.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...

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