The income statement of Monty Company is shown below MONTY COMPANY INCOME STATEM

Question

The income statement of Monty Company is shown below MONTY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $7,070,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold $1,980,000 4,820,000 6,800,000 1,510,000 5,290,000 1,780,000 Gross profit Operating expenses Selling expenses Administrative expenses 480,000 640,000 1,120,000 $660,000 Net income Additional information: 1. Accounts receivable decreased $300,000 during the year 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $300,000 during the year. 4. Accrued expenses payable decreased $100,000 during the year. 5. Administrative expenses include depreciation expense of $60,000

Explanation / Answer

Partial Statement of Cash Flows For the Year Ended December 31 2017 Cash Flows from Operating Activities Net Income 660000 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 60000 Decrease in Accounts Receivable 300000 Increase in Prepaid Expenses -160000 Decrease in Accrued Expenses Payable -100000 Decrease in Accounts Payable -300000 -200000 Net Cash Provided by Operating Activities 460000

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