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Cash Flow Statement

Please see attached file.

12-3A) the income statement of Elbert Company is presented here:

Elbert Company
Income Statement
For the year ended November 30,2007

Sales $ 7,700,000
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 of goods sold $ 4,900,000

Gross Profit $ 2,800,000
Operating Expenses
Selling expenses $450,000
Administrative Exp. $700,000 $ 1,150,000

Net Income $ 1,650,000

Additional Information:
1) Accounts receivable increased $250,000 during the year and inventory decreased $500,000.
2) Prepaid expenses increased $150,000 during the year.
3) Accounts payable to suppliers of merchandise decreased $340,000 during the year.
4) Accrued expenses payable decreased $100,000 during the year.
5) Administrative expenses include depreciation expense of $90,000.

Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2007, for Ebert Company using the indirect method.

12-4A)

Prepare the operating activities section of the cash flows using the direct method, same year ending.

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Solution Summary

This solution prepares the operating activities section of the cash flow statement.

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