Help with this please ... 1. Net income for Malamud Greeting Card Company was $7

Question

Help with this please ...

1.            Net income for Malamud Greeting Card Company was $79,500, depreciation expense was $21,430, and there was a loss on the sale of investments of $5,800. Relevant accounts from the balance sheet for December 31, 19x2 and 10x1 are as follows:

   19x2                            19x1

                        Accounts Receivable (net)                                     $18,530                      $23,670

                        Inventory                                                                   39,640                      34,990

                        Prepaid Expenses                                                       2,400                          8,900

                        Accounts Payable                                                   34,940                      22,700

                        Accrued Liabilities                                                       4,690                          8,830

                        Income Taxes Payable                                               4,750                      17,600

            Using the indirect method, prepare a schedule of cash flows from operating activities.

Explanation / Answer

Hi,

Please find the answer as follows:

Thanks.

Net Income 79500 Add Depreciation Expense 21430 Loss on Sale of Investments 5800 Decrease in Accounts Receivable 5140 Decrease in Prepaid Expenses 6500 Increase in Accounts Payable 12240 Less Increase in Inventory -4650 Decrease in Accrued Liabilties -4140 Decrease in Income Taxes Payable -12850 Cash Flows from Operating Activities 108970

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