Please see attached file.
12-3A) the income statement of Elbert Company is presented here:
For the year ended November 30,2007
Goods available for sale $6,300,000
Ending inventory $1,400,000
Total of goods sold $ 4,900,000
Gross Profit $ 2,800,000
Selling expenses $450,000
Administrative Exp. $700,000 $ 1,150,000
Net Income $ 1,650,000
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.
Prepare the operating activities section of the cash flows using the direct method, same year ending.
This solution prepares the operating activities section of the cash flow statement.