Following are the income statement and some additional information for Parson Corporation for 2018. All sales were on credit and accounts receivable increased by $600 in 2018 compared to 2017. Merchandise purchases were on credit with an increase in accounts payable of $400 during the year. Ending inventory was $500 larger than beginning inventory. Income taxes payable increased $300 during the year. All operating expenses were paid for in cash.
Required:
Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Question

Following are the income statement and some additional information for Parson Corporation for 2018.  All sales were on credit and accounts receivable increased by $600 in 2018 compared to 2017. Merchandise purchases were on credit with an increase in accounts payable of $400 during the year. Ending inventory was $500 larger than beginning inventory. Income taxes payable increased $300 during the year. All operating expenses were paid for in cash.
Required:
Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Quizplus · Accepted Answer

The Answer of Following are the income statement and some additional information for Parson Corporation for 2018.  All sales were on credit and accounts receivable increased by $600 in 2018 compared to 2017. Merchandise purchases were on credit with an increase in accounts payable of $400 during the year. Ending inventory was $500 larger than beginning inventory. Income taxes payable increased $300 during the year. All operating expenses were paid for in cash.
Required:
Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Following Are the Income Statement and Some Additional Information for Parson