The current sections of Scoggin Inc.’s balance sheets at December 31, 2016 and 2
ID: 2529261 • Letter: T
Question
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 $151,700. Depreciation expense was $24,300.
2017
2016
$103,000
$98,300
108,400
77,900
157,700
171,100
26,500
25,100
$395,600
$372,400
$15,400
$9,100
85,200
95,300
$100,600
$104,400
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).)
2017
2016
Current assets Cash$103,000
$98,300
Accounts receivable108,400
77,900
Inventory157,700
171,100
Prepaid expenses26,500
25,100
Total current assets$395,600
$372,400
Current liabilities Accrued expenses payable$15,400
$9,100
Accounts payable85,200
95,300
Total current liabilities$100,600
$104,400
Explanation / Answer
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.
Net income 151700 Adjustment to reconcile net income Depreciation expense 24300 Increase account receivable -30500 Decrease inventory 13400 Increase prepaid expense -1400 Increase accured expense payable 6300 Decrease account payable -10100 2000 Net cash flow from operating activities 153700Related Questions
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