Acc557 Financial Accounting: P13-3A The income statement of Toby Zed Company is presented here

Acc557 Financial Accounting

PROBLEM 13-3A
The income statement of Toby Zed Company is presented here
Toby Zed Company
Income Statement
For the Year Ended November 30, 2014
Sales revenue 7,500,000
Cost of goods sold
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 profit 2,600,000
Operating expenses 1,150,000
Net income 1,450,000

Additional information:
1. Accounts receivable increased $200,000 during the year, and inventory decreased $500,000.
2. Prepaid expenses increased $175,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $340,000 during the year.
4. Accrued expenses payable decreased $105,000 during the year.
5. Operating expenses include depreciation expense of $85,000.

Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2014, for Toby Zed Company, 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).)
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