Exercise 23-3 The income statement of Coronado Company is shown below. CORONADo

Question

Exercise 23-3 The income statement of Coronado Company is shown below. CORONADo cO MPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue Cost of goods sold 7,360,000 $2,000,000 4,260,000 Goods availabl for 6,260,000 1,680,000 Ending inventory Cost of goods sold 4,590,000 2,790,00O Gross profit Operating expenses Seling expenses 460,000 690,000 1,150,000 Net income $1,630,000 Additional infonmation 1. Accounts receivable decreased $270,000 during the ycar. 2. Prepaid expenses increased $160,000 during the year 3. Accounts payeble to suppliers of merchandise decreased $300,000 during the year 4. Accrucd axpenses payable decreased $130,000 during the year S. Administrative expenses include depreciation expense of $60,000 Prepare the operating activit es section of the statement of cash flows for he year ended December 31, 2017, or Coronado Company using the i direct method Show amounts that decrease cash flow th e her sign e g, 15 O orin parenthesis e (1 00 ) Statement of Cash Flows (Partial) Adjustments to reconcile net income to

Explanation / Answer

Statement of cash flow under indirect method :

1630000

Cash flow from operating activities Net income

1630000

Adjustment to reconcile net income to Account receivable decrease 270000 Prepaid expense increase (160000) Account payable decrease (300000) Accured expense decrease (130000) Depreciation expense 60000 (260000) Net cash flow from operating activities 1370000

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.