Sales revenue Cost of goods sold Beginning inventory $1,840,000 Purchases Goods available for sale Ending inventory $6,630,000 4,520,000 6,360,000 1,530,000 Cost of goods sold 4,830,000 Gross profit 1,800,000 Operating expenses Selling expenses 450,000 Administrative 660,000 1,110,000 expenses $690,000 Net income Additional information: 1. Accounts receivable decreased $290,000 during the year. 2. Prepaid expenses Increased $180,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $260,000 during the year. 4. Accrued expenses payable decreased $120,000 during the year. 5. Administrative expenses include depreciation expense of $60,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Monty 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).) MONTY COMPANY Statement of Cash Flows (Partial) Adjustments to reconcile net income to $
Sales revenue Cost of goods sold Beginning inventory $1,840,000 Purchases Goods available for sale Ending inventory $6,630,000 4,520,000 6,360,000 1,530,000 Cost of goods sold 4,830,000 Gross profit 1,800,000 Operating expenses Selling expenses 450,000 Administrative 660,000 1,110,000 expenses $690,000 Net income Additional information: 1. Accounts receivable decreased $290,000 during the year. 2. Prepaid expenses Increased $180,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $260,000 during the year. 4. Accrued expenses payable decreased $120,000 during the year. 5. Administrative expenses include depreciation expense of $60,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Monty 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).) MONTY COMPANY Statement of Cash Flows (Partial) Adjustments to reconcile net income to $
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 58E: Analyzing Inventory The recent financial statements of McLelland Clothing Inc. include the following...
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