The income statement of Pearl Company is shown below. PEARL COMPANY INCOME STATEMENT...
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The income statement of Pearl Company is shown below. PEARL COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,570,000 Cost of goods sold Beginning inventory $1,870,000 Purchases 4,350,000 Goods available for sale 6,220,000 Ending inventory 1,590,000 Cost of goods sold 4,630,000 Gross profit 1,940,000 Operating expenses Selling expenses 490,000 Administrative expenses 680,000 1,170,000 $770,000 Net income 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 $250,000 during the year. 4. Accrued expenses payable decreased $120,000 during the year. 5. Administrative expenses include depreciation expense of $60,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Pearl 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).) PEARL COMPANY Statement of Cash Flows (Partial) Adjustments to reconcile net income to 24
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