Answer:
Sales revenue $1,235,000
Cost of goods sold $871,000
Wages expense $273,000
Rent expense $54,600
<u>Utilities expense $19,500 </u>
Net income $16,900
End of Year Beginning of Year
Accounts receivable $83,200 $76,700 ($6,500)
Inventory $78,000 $111,800 $33,800
Prepaid rent $10,400 $9,100 ($700)
Accounts payable $28,600 $36,400 ($7,800)
Wages payable $11,700 $7,800 $3,900
Arcadia Company
<u>Cash flow from Operating Activities</u>
Net Income $16,900
Adjusting entries to reconcile net income $22,700
- Decrease in inventory $33,800
- Increase in wages payable $3,900
- Increase in accounts receivable ($6,500)
- Increase in prepaid rent ($700)
- Decrease in accounts payable ($7,800)
Net cash flow from operating activities $36,900
