ring activitiesP12-3A The income statement of Munsun Company is presented here.

Question

ring activitiesP12-3A The income statement of Munsun Company is presented here. method. (LO 2), AP MUNSUN COMPANY Income Statement For the Year Ended November 30, 2017 XLS Sales revenue Cost of goods sold $7,600,000 Beginning inventory $1,900,000 4,400,000 6,300,000 1,600,000 Goods available for sale Ending inventory Total cost of goods sold Gross proft Operating expenses 4,700,000 2,900,000 Selling expenses Administrative expenses 450,000 700,000 1,150,000 $1,750,000 Net income Additional information: . Accounts receivable decreased $380,000 during the year, and inventory decreased $300,000 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 $110,000. Instructions Net cash provided $1,940,000 Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2017, for Munsun Company, using the indirect method.

Explanation / Answer

Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2017, for Munsun Company, using the indirect method.  

Cash flow from operating activities Net income 1750000 Adjustment to reconcile net income Depreciation expenses 110000 Account receivable decreased 380000 Inventory decreased 300000 Increase prepaid expenses (150000) Decrease account payable (350000) Decrease accured expenses (100000) Net cash flow from operating activities 1940000

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