Additional information:1. Accounts receivable decreased $360,000 during the year.2. Prepaid expenses increased $170,000 during t
he year.3. Accounts payable to suppliers of merchandise decreased $275,000 during the year.4. Accrued expenses payable decreased $100,000 during the year.5. Administrative expenses include depreciation expense of $60,000.Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Vince Gill Company, using the indirect method.
1 answer:
Answer and Explanation:
The preparation of cash flows from operating activities is shown below:-
Net Loss $1,050,000
Add:
Decrease in accounts receivable $360,000
Add: Decrease in inventory $300,000
Less: Increase in prepaid expenses ($170,000)
Less: Decrease in accounts payable ($275,000)
Less: Decrease in accrued expenses
payable ($100,000)
Add: Depreciation $60,000 $175,000
Cash flows from operating activities $1,225,000
You might be interested in
Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
