MARIN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenu

Question

MARIN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,250,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold $1,990,000 4,470,000 6,460,000 1,700,000 4,760,000 Gruss profil Operating expenses 1,490,000 410,000 Selling expenses Administrative expenses 700,000 1,110,000 Net income $380,000 Additional information: 1. Accounts receivable decreased $280,000 during the year 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $250,000 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 for the year ended December 31, 2017, for Marin Company, 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).) MARIN COMPANY Statement of Cash Flows (Partial) or the Year Ended December 31, 2017 sh Flows from Operating Activities Net Incom Adjustments to reconcile net income to Net Cash Provided by Operating Activities $1380,000 reciation expens ease in Accounts Receivable ease in Invento 60,000 280,000 290,000 Increase in Prepaid Expense 160,000 ease in Accounts Payabl 250,000 ease in Accrued Expenses Payable 110,000 1,150,000 Net Cash Provided by Operating Activities

Explanation / Answer

Statement of cash flow from operating activities :

Cash flow from operating activities Net income 380000 Adjustment to reconcile net income to Net cash provided by operating activities Depreciation expense 60000 Decrease in account receivable 280000 Decrease in inventory 290000 Increase prepaid expense -160000 Decrease account payable -250000 Decrease accured expense payable -110000 110000 Net cash flow from operating activities 490000

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