PAXSON COMPANY Income Statement For the Year Ended November 30, 2014 $7,712,000

Question

PAXSON COMPANY
Income Statement
For the Year Ended November 30, 2014 $7,712,000 $2,436,200 4,503,500 6,939,700 1,520,100 5,419,600 2,292,400 423,200 726,500 1,149,700 $1,142,700 PAXSON COMPANY
Partial Statement of Cash Flows
For the Year Ended November 30, 2014 The income statement of Paxson Company is presented here.

PAXSON COMPANY
Income Statement
For the Year Ended November 30, 2014 Sales revenue $7,712,000 Cost of goods sold     Beginning inventory $2,436,200     Purchases 4,503,500     Goods available for sale 6,939,700     Ending inventory 1,520,100 Total cost of goods sold 5,419,600 Gross profit 2,292,400 Operating expenses     Selling expenses 423,200     Administrative expenses 726,500 1,149,700 Net income $1,142,700
Additional information:

1. Accounts receivable decreased $417,900 during the year, and inventory decreased $916,100. 2. Prepaid expenses increased $149,500 during the year. 3. Accounts payable to suppliers of merchandise decreased $352,300 during the year. 4. Accrued expenses payable decreased $118,800 during the year. 5. Administrative expenses include depreciation expense of $148,400.
Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

PAXSON COMPANY
Partial Statement of Cash Flows
For the Year Ended November 30, 2014 $ : $ $ The income statement of Paxson Company is presented here. Accounts receivable decreased $417,900 during the year, and inventory decreased $916,100. Prepaid expenses increased $149,500 during the year. Accounts payable to suppliers of merchandise decreased $352,300 during the year. Accounts payable to suppliers of merchandise decreased $352,300 during the year. Administrative expenses include depreciation expense of $148,400. Prepare the operating activities section of the statement of cash flows using the direct method.

Explanation / Answer

Hi Plz find the Cash flows in requested format.

Indirect Method PARTICULARS AMOUNT AMOUNT Operating Activities Net Income $1,142,700 Add : Depreciation for the year $148,400.00 $1,291,100 Add: loss on sale of Investments Changes in Assets and liabilities Add : Increase in A/c receivable 417,900 Add : Increase in Inventory 916100 Less: Increase in Prepaid Expenses 149,500 Less: Decrease in Accounts payables 352300 Less: Decrease in Accrued Expenses 118800 Cash from operating activities 2004500

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