The income statement of Grider Company is presented here.
|
GRIDER COMPANY |
|
|
Sales |
$7,700,000 |
|
Cost of goods sold |
|
|
Beginning inventory |
$1,900,000 |
|
Purchases |
4,400,000 |
|
Goods available for sale |
6,300,000 |
|
Ending inventory |
1,400,000 |
|
Total cost of goods sold |
4,900,000 |
|
Gross profit |
2,800,000 |
|
Operating expenses |
450,000 |
|
Selling expenses |
700,000 |
|
Administrative expenses |
1,150,000 |
|
Net income |
$1,650,000 |
Additional information:
1. Accounts receivable increased $300,000 during the year, and inventory decreased $500,000.
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 $80,000.
Instructions
Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2010, for Grider Company, using the indirect method.