The income statement of Cullumber Company is presented here Cullumber Company In

Question

The income statement of Cullumber Company is presented here Cullumber Company Income Statement For the Year Ended November 30, 2017 Sales revenue $7,451,100 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory $1,912,300 4,389,700 6,302,000 1,591,500 4,710,500 Total cost of goods sold Gross profit Operating expenses 2,740,600 Selling expenses Administrative expenses 453,900 701,000 1,154,900 Net income $1,585,700 Additional information: 1. Accounts receivable decreased $377,500 during the year, and inventory decreased $320,800 2. Prepaid expenses increased $148,900 during the year 3. Accounts payable to suppliers of merchandise decreased $353,900 during the year. 4. Accrued expenses payable decreased $101,100 during the year 5. Administrative expenses include depreciation expense of $110,100

Explanation / Answer

Prepare operating activities section in statement of cash flow :

Cash flow from operating activities Net income 1585700 Adjustment to reconcile net income Depreciation expense 110100 Decrease account receivable 377500 Decrease inventory 320800 Increase prepaid expense (148900) Decrease account payable (353900) Decrease accured expense payable (101100) 204500 Net cash flow from operating activities 1790200

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