Exercise 13-5 The current sections of Scoggin Inc.\'s balance sheets at December

Question

Exercise 13-5 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 $152,700. Depreciation expense was $24,300 2017 2016 Current assets Cash Accounts receivable Inventory Prepaid expenses $107,100 109,200 157,800 26,100 $400,200 $95,300 78,300 171,100 25,300 $370,000 Total current assets Current liabilities Accrued expenses payable Accounts payable $15,300 84,700 $100,000 $9,900 95,300 $105,200 Total current liabilities 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).) SCOGGIN INC Partial Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to

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SOLUTION

SCOGGIN INC.

Partial statement of cash flows

For the year ended December 31, 2017

Amount ($) Amount ($) Cash flows from Operating Activities Net Income 152,700 Adjustments to reconcile net income to net cash provided by operating activities- Depreciation Expenses 24,300 Decrease in inventory ($171,100 - $157,800) 13,300 Increase in accrued expense payable (15,300 - 9,900) 5,400 Increase in pre -paid expenses (26,100 - 25,300) (800) Decrease in accounts payable (95,300 - 84,700) (10,600) Increase in accounts receivable (109,200 - 78,300) (30,900) 700 Net Cash provided by operating activities 153,400

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