Problem:
The income statement of Elbert Company is presented here:
Elbert Corporation
Income Statement
For the Year Ended November 30 2010
|
Sales
Cost of Goods Sold
|
|
$7,700,000
|
|
Beginning Inventory
|
$1,900,000
|
|
|
Purchases
|
4,400,000
|
|
|
Goods Available for Sale
|
6,300,000
|
|
|
Ending Inventory
|
1,400,000
|
|
|
Total Cost of Goods Sold
|
|
4,900,000
|
|
Gross ProfitOperating
|
|
2,800,000
|
|
Expenses Net
|
|
1,150,000
|
|
Income
|
|
$1,650,000
|
Additional information:
1). Accounts receivable increased $250030 during the year, and inventory decreased $500000.
2). Prepaid expenses increased $150,C00 during the year.
3). Accounts payable to suppliers of merchandise decreased $340,000 during theyear.
4). Accrued expenses payable decreased $100000 during the year
5). Administrative expenses include depreciation expense of $90,C00.
Instructions:
Complete the operating activities section of the statement of cash flows for theyear ended November 30, 2010, for Ebert Company, using the indrect method.