The income statement of Hauser Company is presented on the next page. Additional information:
1. Accounts receivable decreased $290,000 during the year, and inventory increased $140,000.
2. Prepaid expenses increased $175,000 during the year.
3. Accounts payable to merchandise suppliers increased $63,000 during the year.
4. Accrued expenses payable increased $145,000 during the year.
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HAUSER COMPANY |
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Sales |
$5,200,000 |
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Cost of goods sold |
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Beginning inventory |
$1,780,000 |
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Purchases |
3,430,000 |
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Goods available for sale |
5,210,000 |
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Ending inventory |
1,920,000 |
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Total cost of goods sold |
3,290,000 |
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Gross profit |
1,910,000 |
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Operating expenses |
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Selling expenses |
420,000 |
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Administrative expense |
525,000 |
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Depreciation expense |
105,000 |
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Amortization expense |
15,000 |
1,065,000 |
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Net income |
$ 845,000 |
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Instructions
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2012, for Hauser Company, using the indirect method.