The income statement of Grider Company is presented here. GRIDER COMPANY Income

Question

The income statement of Grider Company is presented here. GRIDER COMPANY Income Statement For the Year Ended November 30, 2010 Sales $7,700,000 Cost of goods sold 4,900,000 Gross profit 2,800,000 Operating expenses Selling expenses 450,000 Administrative expenses 700,000 1,150,000 Net income $1,650,000 Additional information: 1. Accounts receivable increased $300,000 during the year, and inventory decreased $500,000. 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 $80,000. Instructions Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2010, for Grider Company, using the indirect method.

Explanation / Answer

Net Income 1650000 Add depreciation 80000 Net cash flow from operating activities $1730000

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