Qusetion: Data for Munsun Company are presented in Problem.
Instructions: Prepare the operating activities section of the statement of cash flows using the direct method
Problem: The income statement of Munsun Company is presented here.
Additional information: 1. Accounts receivable decreased $380,000 during the year, and inventory decreased $300,000.
2. Prepaid expenses increased $150,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $350,000 during the year.
4. Accrued expenses payable decreased $100,000 during the year.
5. Administrative expenses include depreciation expense of $110,000.
Instructions: Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2017, for Munsun Company, using the indirect method.