Toby Zed Company Income Statement For the Year Ended November 30, 2014 $7,562,10

Question

Toby Zed Company
Income Statement
For the Year Ended November 30, 2014 $7,562,100 $1,860,700 4,440,500 6,301,200 1,353,600 4,947,600 2,614,500 1,000,600 $1,613,900 TOBY ZED COMPANY
Partial Statement of Cash Flows
For the Year Ended November 30, 2014 Adjustments to reconcile net income to Open Show Work Toby Zed Company
Income Statement
For the Year Ended November 30, 2014 Sales revenue


$7,562,100 Cost of goods sold



    Beginning inventory
$1,860,700

    Purchases
4,440,500

    Goods available for sale
6,301,200

    Ending inventory
1,353,600

Total cost of goods sold


4,947,600 Gross profit


2,614,500 Operating expenses


1,000,600 Net income


$1,613,900 The income statement of Toby Zed Company is presented here. Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2014, for Toby Zed Company, using the indirect method.

Explanation / Answer

Cash Flow from Operating Activities

Net Income................................................. 1613900

Add Depreciation Expense............................... 81000

Add Decrease in Inventory................................ 507100

Less Increase in Accounts Receivable.......... -195500

Less Increase in Prepaid Expenses................. -174200

Less Decrease in Accounts Payable................ -348000

Less Decrease in Accrued Expenses Payable. -100200

Net Cash Provided by Operating Activities.......... 1384100

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