Prepare the operating activities section-indirect method. The income statement o
ID: 2477441 • Letter: P
Question
Prepare the operating activities section-indirect method. The income statement of Paxson Company is presented here. Additional information: Accounts receivable decreased $380,000 during the year, and inventory decreased $300,000. Prepaid expenses increased $150,000 during the year. Accounts payable to suppliers of merchandise decreased $350,000 during the year. Accrued expenses payable decreased $100,000 during the year. 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 indirect method. Net cash provided $1,940,000Explanation / Answer
Statement of Cash Flows (Indirect Method) For the Year Ended Cash flows from operating activities Net income 1750000 working capital adjustments decrease in accounts receivable 380000 decrease in inventory 300000 increase in prepaid expenses -150000 decrease in accounts payable -350000 decrease in accrued exp payable -100000 depreciation 110000 190000 Net cash provided by operating activities 1,940,000