The income statement of Paxson 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 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, 2014, for Paxson Company, using the indirectmethod.

Transcribed Image Text:

PAXSON COMPANY Income Statement For the Year Ended November 30, 2014 $7,600,000 Sales revenue Cost of goods sold Beginning inventor 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