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00 The income statement of Indigo Company is shown below. Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Operating expenses Selling expenses Indigo Company Income Statement For the Year Ended December 31, 2025 Administrative expenses Net income Additional information: 1. 2 3. $1,920,000 4,390,000 6,310,000 1,580,000 460,000 710,000 $6,840,000 Accounts receivable decreased $350,000 during the year. Prepaid expenses increased $160,000 during the year. Accounts payable to suppliers of merchandise decreased $280,000 during the year.. 4. Accrued expenses payable decreased $100,000 during the year. 5. Administrative expenses include depreciation expense of $50,000. 4,730,000 2,110,000 1,170,000 $940,000

00 The income statement of Indigo Company is shown below. Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Operating expenses Selling expenses Indigo Company Income Statement For the Year Ended December 31, 2025 Administrative expenses Net income Additional information: 1. 2 3. $1,920,000 4,390,000 6,310,000 1,580,000 460,000 710,000 $6,840,000 Accounts receivable decreased $350,000 during the year. Prepaid expenses increased $160,000 during the year. Accounts payable to suppliers of merchandise decreased $280,000 during the year.. 4. Accrued expenses payable decreased $100,000 during the year. 5. Administrative expenses include depreciation expense of $50,000. 4,730,000 2,110,000 1,170,000 $940,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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20 The income statement of Indigo Company is shown below. Indigo Company Income Statement For the Year Ended December 31, 2025 Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses Net income Additional information: 2 $1,920,000 4,390,000 6,310,000 1,580,000 460,000 710,000 $6,840,000 4,730,000 2,110,000 1,170,000 $940,000 1. Accounts receivable decreased $350,000 during the year. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $280,000 during the year. 4. Accrued expenses payable decreased $100,000 during the year. 5. Administrative expenses include depreciation expense of $50,000.
Transcribed Image Text:20 The income statement of Indigo Company is shown below. Indigo Company Income Statement For the Year Ended December 31, 2025 Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses Net income Additional information: 2 $1,920,000 4,390,000 6,310,000 1,580,000 460,000 710,000 $6,840,000 4,730,000 2,110,000 1,170,000 $940,000 1. Accounts receivable decreased $350,000 during the year. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $280,000 during the year. 4. Accrued expenses payable decreased $100,000 during the year. 5. Administrative expenses include depreciation expense of $50,000.
Prepare the operating activities section of the statement of cash flows using the direct method. INDIGO COMPANY Partial Statement of Cash Flows eTextbook and Media < < > S $ Assistance Used
Transcribed Image Text:Prepare the operating activities section of the statement of cash flows using the direct method. INDIGO COMPANY Partial Statement of Cash Flows eTextbook and Media < < > S $ Assistance Used
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