The income statement of Bridgeport Company is shown below BRIDGEPORT COMPANY INC
ID: 2562677 • Letter: T
Question
The income statement of Bridgeport Company is shown below BRIDGEPORT COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $7,410,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold $1,880,000 4,360,000 6,240,000 1,500,000 4,740,000 Gross profit Operating expenses 2,670,000 460,000 630,000 Selling expenses Administrative expenses 1,090,000 Net income $1,580,000 Additional information: 1. Accounts receivable decreased $300,000 during the year 2. Prepaid expenses increased $170,000 during the year 3. Accounts payable to suppliers of merchandise decreased $280,000 during the year 4. Accrued expenses payable decreased $130,000 during the year 5. Administrative expenses include depreciation expense of $60,000Explanation / Answer
Answer
A. Cash Flows from Operating Activities
Net Income (given)
1580000
Adjustments to reconcile net income to
Depreciation expense (added, as non-cash item)
60000
Decrease in accounts receivables
300000
Increase in Prepaid expenses
-170000
Decrease in accounts payables
-280000
Decrease in Accrued expenses
-130000
-220000
Net cash provided by Operating Activities
1360000
A. Cash Flows from Operating Activities
Net Income (given)
1580000
Adjustments to reconcile net income to
Depreciation expense (added, as non-cash item)
60000
Decrease in accounts receivables
300000
Increase in Prepaid expenses
-170000
Decrease in accounts payables
-280000
Decrease in Accrued expenses
-130000
-220000
Net cash provided by Operating Activities
1360000
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