income statement of Sohar Company is presented here. SOHAR COMPANY Income Statement For the Year Ended November 30, 2012 Sales revenue $7,700,000 Cost of goods sold Beginning inventory $1,900,000 Purchases 4,400,000 Goods available for sale 6,300,000 Ending inventory 1,400,000 Total cost of goods sold 4,900,000 Gross profit 2,800,000 Operating expenses 1,150,000 Net income $1,650,000 Additional information: Accounts receivable decreased $250,000 during the year, and inventory increased $500,000. Prepaid expenses increased $150,000 during the year. Accounts payable to suppliers of merchandise increased $340,000 during the year. Accrued expenses payable decreased $100,000 during the year. Operating expenses include depreciation expense of $90,000. Instructions Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2012, for Sohar Company, using the indirect method.
income statement of Sohar Company is presented here.
SOHAR COMPANY
Income Statement
For the Year Ended November 30, 2012
Sales revenue $7,700,000
Cost of goods sold
Beginning inventory $1,900,000
Purchases 4,400,000
Goods available for sale 6,300,000
Ending inventory 1,400,000
Total cost of goods sold 4,900,000
Gross profit 2,800,000
Operating expenses 1,150,000
Net income $1,650,000
Additional information:
Accounts receivable decreased $250,000 during the year, and inventory increased $500,000.- Prepaid expenses increased $150,000 during the year.
- Accounts payable to suppliers of merchandise increased $340,000 during the year.
- Accrued expenses payable decreased $100,000 during the year.
- Operating expenses include
depreciation expense of $90,000.
Instructions
Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2012, for Sohar Company, using the indirect method.
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