VINCE GILL COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,900,000 Cost of goods sold Beginning inventory Purchases $1,900,000 4,400,000 Goods available for sale 6,300,000 1,600,000 Ending inventory Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses 4,700,000 2,200,000 450,000 700,000 1,150,000 Net income $1,050,000
(Preparation of Operating Activities Section—Indirect Method, Periodic Inventory) The income statement of Vince Gill Company is shown below.
Check the below image for income statements
Additional information:
1.
2. Prepaid expenses increased $170,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $275,000 during the year.
4. Accrued expenses payable decreased $100,000 during the year.
5. Administrative expenses include
Instructions
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Vince Gill Company, using the indirect method.
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