Exercise 13-5 The current sections of Scoggin Inc.’s balance sheets at December
ID: 2527873 • Letter: E
Question
Exercise 13-5
The current sections of Scoggin Inc.’s balance sheets at December 31, 2016 and 2017, are presented here.
Scoggin’s net income for 2017 was $150,300. Depreciation expense was $23,900.
2017
2016
$103,300
$97,000
108,900
80,100
157,700
172,900
26,900
25,600
$396,800
$375,600
$14,000
$8,100
85,900
95,400
$99,900
$103,500
Prepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2017, 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).)
Adjustments to reconcile net income to
2017
2016
Current assets Cash$103,300
$97,000
Accounts receivable108,900
80,100
Inventory157,700
172,900
Prepaid expenses26,900
25,600
Total current assets$396,800
$375,600
Current liabilities Accrued expenses payable$14,000
$8,100
Accounts payable85,900
95,400
Total current liabilities$99,900
$103,500
Explanation / Answer
Cash Flow from Operating Activities for Scoggin Inc $ Net Income as per P&L A/c 150300 Add: Depreciation 23900 A 174200 Adjustments for Movement in Working Capital Less: Increase in Account Receivable -28800 Add: Decrease in Inventory 15200 Less: Increase in Prepaid Expenses -1300 Add: Increase in Accured Exps Payable 5900 Less: Decrease in Accounts Payable -9500 B -18500 Cash Flow from Operating Activities (A+B) 155700
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.