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The income statement of Frank Company is shown below: FRANK COMPANY Income Statement For the Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expense Depreciation expense Amortization expense Net income Additional information: 1. 2. 3. 4. 5. $500,000 700,000 90,000 30,000 $8,400,000 5,400,000 3,000,000 1,320,000 $1,680,000 Accounts receivable increased $400,000 during the year. Inventory increased $250,000 during the year. Prepaid expenses increased $200,000 during the year. Accounts payable to merchandise suppliers increased $100,000 during the year. Accrued expenses payable increased $160,000 during the year. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Frank Company, using the direct method. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).)

The income statement of Frank Company is shown below: FRANK COMPANY Income Statement For the Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expense Depreciation expense Amortization expense Net income Additional information: 1. 2. 3. 4. 5. $500,000 700,000 90,000 30,000 $8,400,000 5,400,000 3,000,000 1,320,000 $1,680,000 Accounts receivable increased $400,000 during the year. Inventory increased $250,000 during the year. Prepaid expenses increased $200,000 during the year. Accounts payable to merchandise suppliers increased $100,000 during the year. Accrued expenses payable increased $160,000 during the year. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Frank Company, using the direct method. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The income statement of Frank Company is shown below: FRANK COMPANY Income Statement For the Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Selling expenses Net income Additional information: 1. 2. 3. Administrative expense Depreciation expense Amortization expense 4. 5. $500,000 700,000 90,000 30,000 $8,400,000 5,400,000 3,000,000 1,320,000 $1,680,000 Accounts receivable increased $400,000 during the year. Inventory increased $250,000 during the year. Prepaid expenses increased $200,000 during the year. Accounts payable to merchandise suppliers increased $100,000 during the year. Accrued expenses payable increased $160,000 during the year. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Frank Company, using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Transcribed Image Text:The income statement of Frank Company is shown below: FRANK COMPANY Income Statement For the Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Selling expenses Net income Additional information: 1. 2. 3. Administrative expense Depreciation expense Amortization expense 4. 5. $500,000 700,000 90,000 30,000 $8,400,000 5,400,000 3,000,000 1,320,000 $1,680,000 Accounts receivable increased $400,000 during the year. Inventory increased $250,000 during the year. Prepaid expenses increased $200,000 during the year. Accounts payable to merchandise suppliers increased $100,000 during the year. Accrued expenses payable increased $160,000 during the year. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Frank Company, using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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