The income statement of Paxson Company is presented here. PA Income Statement Fo

Question

The income statement of Paxson Company is presented here. PA Income Statement For the Year Ended November 30, 2014 Sales revenue $7,768,300 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory $2,311,700 6,610,800 1,373,600 Total cost of goods sold Gross profit 2,531,100 462,100 748,6001,210 700 Selling expenses Administrative expenses Net income $1,320,400 Additional information: 1. Accounts receivable decreased $433,800 during the year, and inventory decreased $938,100. 2. Prepaid expenses increased $158,000 during the year 3. Accounts payable to suppliers of merchandise decreased $356,200 during the year. 4. Accrued expenses payable decreased $110,000 during the year 5. Administrative expenses include depreciation expense of $155,400 Prepare the operating activities sea Prepare the operating activities section of the statement of cash flows for the year either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) ended November 30, 2014, for Paxson Company, using the indirect method. PAXSON COMPANY Partial Statement of Cash Flows For the Year Ended November 30, 2014 Adjustments to reconcile net income to

Explanation / Answer

PAXON Company Cash Flow Statement (partial) for the Year ended Nov 30 2014. Details Amt $ Cash Flow From Operating Activities Net Income          1,320,400 Adjustments to Net Income to Derive Cash Flow from Operations; Add : Depreciation            155,400 Add: Decreased Accounts Receivable            433,800 Add: Decreased Inventory            938,100 Less: Increased Prepaid Expenses         (158,000) Less : Decrease in Accounts Payable         (356,200) Less: Decrease in Accrued Expenses         (110,000) Total : Cash Flow from Operating Activities        2,223,500

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