The income statement of Sandhill Co. is presented here. Sandhill Co. Income Stat
ID: 2586516 • Letter: T
Question
The income statement of Sandhill Co. is presented here.
Sandhill Co.
Income Statement
For the Year Ended November 30, 2017
$7,668,300
$1,904,300
4,482,600
6,386,900
1,584,800
4,802,100
2,866,200
450,100
713,000
1,163,100
$1,703,100
Additional information:
Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2017, for Sandhill Co., 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).)
Adjustments to reconcile net income to
Sandhill Co.
Income Statement
For the Year Ended November 30, 2017
$7,668,300
Cost of goods sold Beginning inventory$1,904,300
Purchases4,482,600
Goods available for sale6,386,900
Ending inventory1,584,800
Total cost of goods sold4,802,100
Gross profit2,866,200
Operating expenses Selling expenses450,100
Administrative expenses713,000
1,163,100
Net income$1,703,100
Explanation / Answer
Cash flow from operating activities
Net income 1703100
Adjustments:
Depreciation 108000
Decrease in accounts receivable 375000
Decrease in inventory 319500
Increase in prepaid expense (147000)
Decrease in accounts payable (343500)
Decrease in accrued expenses (100700) 211300
Net cash flow from operating activities 1914400
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