The current sections of Scoggin Inc.’s balance sheets at December 31, 2016 and 2
ID: 2497726 • Letter: T
Question
The current sections of Scoggin Inc.’s balance sheets at December 31, 2016 and 2017, are presented here.
Scoggin’s net income for 2017 was $154,300. Depreciation expense was $24,000. 2017 2016
Current assets 2017 2016
Cash $108,700 $99,800
Accounts receivable 111,300 78,900
Inventory 158,700 172,300
Prepaid expenses 26,100 25,300
Total current assets $404,800 $376,300
Current liabilities
Accrued expenses payable $15,900 $9,300
Accounts payable 85,100 95,400
Total current liabilities $101,000 $104,700
Prepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Explanation / Answer
The net cash provided by operating activities section of the company’s statement of
cash flows for the year ended December 31, 2017
Particulars Cash flow $ Net Income during 2017 154,300 Accounts receivable (32,400) Inventory 13,600 Prepaid expenses (800) Accrued expenses payable 6,600 Accounts payable (10,300) Depreciation 24,000 NET CASH PROVIDED BY OPERATING ACTIVITIES 2017 155,000Related Questions
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