Preparation of Operating Activities Section—Indirect Method, Periodic Inventory) The income statement of Dunne Company is shown below.Dunne Company Income Statement For the Year Ended December 31, 2020Sales revenue $ 8,900,000 Cost of goods sold 5,700,000 Gross profit 3,200,000 Operating expenses Selling expenses 550,000 Administrative expenses 725,000 1,275,000 Net income 1,925,000 1. Accounts receivable increased 340,000 during the year2. Inventory decreased $200,000 during the year3. Prepaid expenses increased $150,000 during the year4. Accounts payable to suppliers decreased $310,000 during the year5. Accrued expenses payable increased $70,000 during the year6. Administrative expenses include depreciation expense of $60,000 Prepare the operating activities section of the statement of cash flows for the year ended Dec 31, 2020 for Dunne company, using the indirect method
Preparation of Operating Activities Section—Indirect Method, Periodic Inventory) The income statement of Dunne Company is shown below.Dunne Company Income Statement For the Year Ended December 31, 2020Sales revenue $ 8,900,000 Cost of goods sold 5,700,000 Gross profit 3,200,000 Operating expenses Selling expenses 550,000 Administrative expenses 725,000 1,275,000 Net income 1,925,000 1.
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