The income statement of Mazor Company is presented here.
|
MAZOR COMPANY |
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|
Sales |
$7,600,000 |
|
|
Cost of goods sold |
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|
Beginning inventory |
$1,900,000 |
|
|
Purchases |
4,400,000 |
|
|
Goods available for sale |
6,300,000 |
|
|
Ending inventory |
1,600,000 |
|
|
Total cost of goods sold |
4,700,000 |
|
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Gross profit |
2,900,000 |
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|
Operating expenses |
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Selling expenses |
450,000 |
|
|
Administrative expenses |
700,000 |
1,150,000 |
|
Net income |
$1,750,000 |
|
Additional information:
1. Accounts receivable decreased $380,000 during the year, and inventory decreased $300,000.
2. Prepaid expenses increased $150,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $350,000 during the year.
4. Accrued expenses payable decreased $100,000 during the year.
5. Administrative expenses include depreciation expense of $110,000.
Instructions
Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2012, for Mazor Company, using the indirect method.