Question

The income statement of Marin Inc. is presented here.

Marin Inc. Income Statement For the Year Ended November 30, 2017
Sales revenue				$7,579,100
Cost of goods sold
Beginning inventory		$1,866,300
Purchases		4,483,800
Goods available for sale		6,350,100
Ending inventory		1,573,100
Total cost of goods sold				4,777,000
Gross profit				2,802,100
Operating expenses
Selling expenses		446,400
Administrative expenses		690,100		1,136,500
Net income				$1,665,600

Additional information:

1.		Accounts receivable decreased $372,700 during the year, and inventory decreased $293,200.
2.		Prepaid expenses increased $148,500 during the year.
3.		Accounts payable to suppliers of merchandise decreased $346,700 during the year.
4.		Accrued expenses payable decreased $98,900 during the year.
5.		Administrative expenses include depreciation expense of $109,200.

Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2017, for Marin Inc., 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).)

Answer 1

Cash flow from operating activities
Net income		1665600
Adjustment to reconcile net income to net Cash flow from operating activities
Depreciation expense	109200
Decrease account receivable	372700
Inventory Decrease	293200
Prepaid expense increase	-148500
Account payable Decrease	-346700
Accrued expense payable Decrease	-98900
		181000
Net Cash flow from operating activities		1846600