16.The income statement of Bonita Company is shown below.BONITA COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020Sales revenue $6,470,000Cost of goods sold Beginning inventory $2,050,000 Purchases 4,300,000 Goods available for sale 6,350,000 Ending inventory 1,650,000 Cost of goods sold 4,700,000Gross profit 1,770,000Operating expenses Selling expenses 430,000 Administrative expenses 700,000 1,130,000Net income $640,000Additional information:1. Accounts receivable decreased $290,000 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 $70,000.Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Bonita Company, 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).)BONITA COMPANYStatement of Cash Flows (Partial)choose the accounting period select an opening section name select an item $enter a dollar amount Adjustments to reconcile net income to select a subsection name select an item $enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount enter a subtotal of the adjustmentsselect a closing section name $enter a total amount for the section

Answered: Prepare the operating activities…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.8MCP

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16.

The income statement of Bonita Company is shown below.

BONITA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue		$6,470,000
Cost of goods sold
Beginning inventory	$2,050,000
Purchases	4,300,000
Goods available for sale	6,350,000
Ending inventory	1,650,000
Cost of goods sold		4,700,000
Gross profit		1,770,000
Operating expenses
Selling expenses	430,000
Administrative expenses	700,000	1,130,000
Net income		$640,000

Additional information:

1.		Accounts receivable decreased $290,000 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 $70,000.

Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Bonita Company, 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).)

BONITA COMPANY Statement of Cash Flows (Partial) choose the accounting period
select an opening section name
select an item		$enter a dollar amount
Adjustments to reconcile net income to
select a subsection name
select an item	$enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
		enter a subtotal of the adjustments
select a closing section name		$enter a total amount for the section

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