Prepare the operating activities section of the statement of cash flows for 2014. Use the indirect method.
The current sections of Sanford Inc.%u2019s balance sheets at December 31, 2013 and 2014, are presented here. Sanford%u2019s net income for 2014 was $153,000. Depreciation expense was $27,000.
Prepare the operating activities section%u2014indirect method.
|
2014 |
2013 |
|
|---|---|---|
|
Current assets |
||
|
Cash |
$105,000 |
$ 99,000 |
|
Accounts receivable |
80,000 |
89,000 |
|
Inventory |
168,000 |
172,000 |
|
Prepaid expenses |
27,000 |
22,000 |
|
Total current assets |
$380,000 |
$382,000 |
|
Current liabilities |
||
|
Accrued expenses payable |
$ 15,000 |
$%u2002%u20025,000 |
|
Accounts payable |
85,000 |
92,000 |
|
Total current liabilities |
$100,000 |
$ 97,000 |