Pierce Company reported net income of $200,000 for the current year. Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
End of YearBeginning of Year
Income taxes payable1,6001,200
Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.
The income statement of Haslett Company is shown below:
For the Year Ended December 31, 2008
Cost of goods sold 5,400,000
Amortization expense 30,000 1,320,000
1.Accounts receivable increased $500,000 during the year.
2.Inventory increased $250,000 during the year.
3.Prepaid expenses increased $200,000 during the year.
4.Accounts payable to merchandise suppliers increased $150,000 during the year.
5.Accrued expenses payable increased $180,000 during the year. Instructions
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2008, for Haslett Company, using the direct...