23--4 SAGE COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales r

Question

23--4

SAGE COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,930,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold $1,900,000 4,350,000 6,250,000 1,610,000 4,640,000 Gross profit Operating expenses 2,290,000 Selling expenses Administrative expenses 460,000 700,000 1,160,000 Net income $1,130,000 Additional information: 1. Accounts receivable decreased $360,000 during the year. 2. Prepaid expenses increased $150,000 during the year 3. Accounts payable to suppliers of merchandise decreased $280,000 during the year. 4. Accrued expenses payable decreased $110,000 during the year. 5. Administrative expenses include depreciation expense of $60,000 Prepare the operating activities section of the statement of cash flows using the direct method SAGE COMPANY Statement of Cash Flows (Partial) For the Year Ended December 31, 2017

Explanation / Answer

Statement of cash flow (partial)

Cash flow from operating activitiess Cash received from customer 7290000 Cash paid to supplier -4630000 Cash paid for expense -1360000 -5990000 Net cash flow from operating activities 1300000

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