Question

Problem 12 3A The income statement of Buffalo Industries is presented here. Buffalo Industries Income Statement For the Year Ended November 30, 2017 Sales revenue $7,561,700 Cost of goods sold $1,927,000 4,337,800 6,264,800 1,618,200 Beginning inventory Goods available for sale Ending inventory Total cost of goods sold Gross profit Operating expenses 4,646,600 2,915,100 450,700 713,800 Selling expenses 1,164,500 $1,750,600 Administrative expenses Net income Additional information: 1. Accounts receivable decreased $373,100 during the year, and inventory decreased $308,800 2. Prepaid expenses increased $148,400 during the year 3. Accounts payable to suppliers of merchandise decreased $350,400 during the year 4. Accrued expenses payable decreased $100,500 during the year 5. Administrative expenses indude deprecation expense of 110,800. Version 4.2 olicy I All Rights Reserved. A Division of 3hn iley&.Ss

Answer 1

Buffalo Industries Partial Statement of Cash Flows (Indirect Method) Cash Flows from Operating Activities Net Income 1750600 Adjustments to reconcile net income Depreciation Accounts Receivable decreased Inventory decreased Prepaid Expenses Increased Accounts Payable decreased Accrued Expense payable decreased 110800 373100 308800 -148400 350400 100500 193400 Net Cash provided by Operating Activities 1944000