The income statement of Paxson Company is presented here PAXSON COMPANY Income S

Question

The income statement of Paxson Company is presented here PAXSON COMPANY Income Statement For the Year Ended November 30, 2014 $7,631,100 Sales revenue Cost of goods sold Beginning inventory $2,219,800 Purchases 4,235,600 6,455,400 Goods available for sale Ending inventory 1,337,800 Total cost of goods sold 5,117,600 2,513,500 Gross profit Operating expenses 431,900 Selling expenses 1,175,500 Administrative expenses 743,600 $1,338,000 Net income Additional information: 1. Accounts receivable decreased $448,700 during the year, and inventory decreased $882,000. 2. Prepaid expenses increased $152,700 during the year. 3. Accounts payable to suppliers of merchandise decreased $352,900 during the year. 4. Accrued expenses payable decreased $109,100 during the year. 5. Administrative expenses include depreciation expense of $160,800

Explanation / Answer

**Payment for expense= 1175500-152700 - 160800 +109100 = 971100

cash flow from operating activity Collection from receivable (7631100+ 448700) 8079800 less:cash payment payment to suppliers =(purchase 4235600 + decrease in payable 352900 ) (4588500) Payment for expense ** (971100) Total cash payment (5559600) cash from operating activity 2520200

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