HEADLAND COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2025 Adjustments to reconcile net income to A LA SA $ The income statement of Headland Company is shown below. Headland Company Income Statement For the Year Ended December 31, 2025 Sales revenue $7,360,000 Cost of goods sold Beginning inventory $1,900,000 Purchases 4,200,000 Goods available for sale 6,100,000 Ending inventory 1,610,000 Cost of goods sold 4,490,000 Gross profit 2,870,000 Operating expenses Selling expenses 490,000 Administrative expenses 740,000 1,230,000 Net income $1,640,000 Additional information: 1. Accounts receivable decreased $300,000 during the year. 2. Prepaid expenses increased $180,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $310,000 during the year. 4. Accrued expenses payable decreased $120,000 during the year. 5. Administrative expenses include depreciation expense of $70,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2025, for Headland Company, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) HEADLAND COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2025
HEADLAND COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2025 Adjustments to reconcile net income to A LA SA $ The income statement of Headland Company is shown below. Headland Company Income Statement For the Year Ended December 31, 2025 Sales revenue $7,360,000 Cost of goods sold Beginning inventory $1,900,000 Purchases 4,200,000 Goods available for sale 6,100,000 Ending inventory 1,610,000 Cost of goods sold 4,490,000 Gross profit 2,870,000 Operating expenses Selling expenses 490,000 Administrative expenses 740,000 1,230,000 Net income $1,640,000 Additional information: 1. Accounts receivable decreased $300,000 during the year. 2. Prepaid expenses increased $180,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $310,000 during the year. 4. Accrued expenses payable decreased $120,000 during the year. 5. Administrative expenses include depreciation expense of $70,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2025, for Headland Company, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) HEADLAND COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2025
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...
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Transcribed Image Text:HEADLAND COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2025
Adjustments to reconcile net income to
A
LA
SA
$
Transcribed Image Text:The income statement of Headland Company is shown below.
Headland Company
Income Statement
For the Year Ended December 31, 2025
Sales revenue
$7,360,000
Cost of goods sold
Beginning inventory
$1,900,000
Purchases
4,200,000
Goods available for sale
6,100,000
Ending inventory
1,610,000
Cost of goods sold
4,490,000
Gross profit
2,870,000
Operating expenses
Selling expenses
490,000
Administrative expenses
740,000
1,230,000
Net income
$1,640,000
Additional information:
1.
Accounts receivable decreased $300,000 during the year.
2.
Prepaid expenses increased $180,000 during the year.
3.
Accounts payable to suppliers of merchandise decreased $310,000 during the year.
4.
Accrued expenses payable decreased $120,000 during the year.
5.
Administrative expenses include depreciation expense of $70,000.
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2025,
for Headland Company, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g.
-15,000 or in parenthesis e.g. (15,000).)
HEADLAND COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2025
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