Exercise 23-3 The income statement of Nash Company is shown below. NASH COMPANY INCOME STATEMENT FOR

Exercise 23-3

The income statement of Nash Company is shown below.

NASH COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue

$6,980,000 Cost of goods sold    Beginning inventory

$1,850,000    Purchases

4,580,000    Goods available for sale

6,430,000    Ending inventory

1,570,000    Cost of goods sold

4,860,000 Gross profit

2,120,000 Operating expenses    Selling expenses

410,000    Administrative expenses

760,000

1,170,000 Net income

$950,000

Additional information: 1. Accounts receivable decreased $300,000 during the year. 2. Prepaid expenses increased $170,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $260,000 during the year. 4. Accrued expenses payable decreased $120,000 during the year. 5. Administrative expenses include depreciation expense of $70,000.

Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Nash 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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