Problem 12-3A The income statement of Headlands Industries is presented here Hea
ID: 2582206 • Letter: P
Question
Problem 12-3A The income statement of Headlands Industries is presented here Headlands Industries Income Statement For the Year Ended November 30, 2017 Sales revenue $7,593,600 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory $1,907,000 4,403,100 6,310,100 1,616,600 4,693,500 Total cost of goods sold Gross profit Operating expenses 2,900,100 452,100 711,300 Selling expenses Administrative expenses 1,163,400 Net income $1,736,700 Additional information: 1. Accounts receivable decreased $381,200 during the year, and inventory decreased $290,400 2. Prepaid expenses increased $149,400 during the year 3. Accounts payable to suppliers of merchandise decreased $347,500 during the year. . Accrued expenses payable decreased $101,100 during the year 5. Administrative expenses include depreciation expense of $111,000 Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2017, for Headlands Industries, using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000).)Explanation / Answer
Partial statement of cash flow :
Cash flow from operating activities Net income 1736700 Adjustment to reconcile net income Depreciation expenses 111000 Decrease account receivable 381200 Decrease inventory 290400 Increase prepaid expenses (149400) Decrease account payable (347500) Decrease accured expenses (101100) Net cash flow from operating activities 1921300