The income statement of Elbert Company is presented here.
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ELBERT COMPANY |
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Sales |
$7,700,000 |
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Cost of goods sold |
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Beginning inventory |
$1,900,000 |
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Purchases |
4,400,000 |
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Goods available for sale |
6,300,000 |
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Ending inventory |
1,400,000 |
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Total cost of goods sold |
4,900,000 |
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Gross profit |
2,800,000 |
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Operating expenses |
1,150,000 |
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Net income |
$1,650,000 |
Additional information:
1. Accounts receivable increased $250,000 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 $340,000 during the year.
4. Accrued expenses payable decreased $100,000 during the year.
5. Operating expenses include depreciation expense of $90,000.
Instructions
Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2010, for Elbert Company, using the indirect method.