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The income statement of Adil Company is presented here. Adil Company Income Statement For the Year Ended December 31, 2021 Sales revenue $ 5,400,000 Cost of goods sold $ 1,750,000 3,430,000 Beginning inventory Purchases Goods available for sale 5,180,000 1,900,000 Ending inventory Total cost of goods sold Gross profit Operating expenses Selling Expense Administrative Expense 3,280,000 2,120,000 420,000 525,000 100,000 Depreciation Expense Amortization Expense 20,000 1,065,000 Net income $ 1,055,000 Additional information: (1). Accounts receivable decreased $320,000 during the year, and inventory increased $150,000. (2). Prepaid expenses increased $170,000 during the year. (3). Accounts payable to merchandise suppliers increased $50,000 during the year. (4). Accrued expenses payable increased $155,000 during the year. Instructions Prepare the operating activities section of the statement of cash flows for the Year Ended December 31, 2021, for Adil Company, using the indirect method.

The income statement of Adil Company is presented here. Adil Company Income Statement For the Year Ended December 31, 2021 Sales revenue $ 5,400,000 Cost of goods sold $ 1,750,000 3,430,000 Beginning inventory Purchases Goods available for sale 5,180,000 1,900,000 Ending inventory Total cost of goods sold Gross profit Operating expenses Selling Expense Administrative Expense 3,280,000 2,120,000 420,000 525,000 100,000 Depreciation Expense Amortization Expense 20,000 1,065,000 Net income $ 1,055,000 Additional information: (1). Accounts receivable decreased $320,000 during the year, and inventory increased $150,000. (2). Prepaid expenses increased $170,000 during the year. (3). Accounts payable to merchandise suppliers increased $50,000 during the year. (4). Accrued expenses payable increased $155,000 during the year. Instructions Prepare the operating activities section of the statement of cash flows for the Year Ended December 31, 2021, for Adil Company, using the indirect method.

Financial & Managerial Accounting
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter5: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 5.35EX: Cost of merchandise sold and related items The following data were extracted from the accounting...
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Q 8 – The income statement of Adil Company is presented here. Adil Company Income Statement For the Year Ended December 31, 2021 Sales revenue $ 5,400,000 Cost of goods sold Beginning inventory $ 1,750,000 3,430,000 5,180,000 Purchases Goods available for sale 1,900,000 Ending inventory Total cost of goods sold Gross profit Operating expenses Selling Expense Administrative Expense 3,280,000 2,120,000 420,000 525,000 100,000 Depreciation Expense Amortization Expense 20,000 1,065,000 $ 1,055,000 Net income Additional information: (1). Accounts receivable decreased $320,000 during the year, and inventory increased $150,000. (2). Prepaid expenses increased $170,000 during the year. (3). Accounts payable to merchandise suppliers increased $50,000 during the year. (4). Accrued expenses payable increased $155,000 during the year. Instructions Prepare the operating activities section of the statement of cash flows for the Year Ended December 31, 2021, for Adil Company, using the indirect method.
Transcribed Image Text:Q 8 – The income statement of Adil Company is presented here. Adil Company Income Statement For the Year Ended December 31, 2021 Sales revenue $ 5,400,000 Cost of goods sold Beginning inventory $ 1,750,000 3,430,000 5,180,000 Purchases Goods available for sale 1,900,000 Ending inventory Total cost of goods sold Gross profit Operating expenses Selling Expense Administrative Expense 3,280,000 2,120,000 420,000 525,000 100,000 Depreciation Expense Amortization Expense 20,000 1,065,000 $ 1,055,000 Net income Additional information: (1). Accounts receivable decreased $320,000 during the year, and inventory increased $150,000. (2). Prepaid expenses increased $170,000 during the year. (3). Accounts payable to merchandise suppliers increased $50,000 during the year. (4). Accrued expenses payable increased $155,000 during the year. Instructions Prepare the operating activities section of the statement of cash flows for the Year Ended December 31, 2021, for Adil Company, using the indirect method.
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