The income statement of Sheridan Company is shown below. Sheridan Company Income Statement For the Year Ended December 31, 2025 Sales revenue $7,030,000 Cost of goods sold Beginning inventory $1,950,000 Purchases 4,600,000 Goods available for sale 6,550,000 Ending inventory 1,680,000 Cost of goods sold 4,870,000 Gross profit 2,160,000 Operating expenses Selling expenses 500,000 Administrative expenses 640,000 1,140,000 Net income $1,020,000 Additional information: 1. Accounts receivable decreased $330,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $270,000 during the year. 4. Accrued expenses payable decreased $120,000 during the year. 5. Administrative expenses include depreciation expense of $60,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2025, for Sheridan 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).)
The income statement of Sheridan Company is shown below. Sheridan Company Income Statement For the Year Ended December 31, 2025 Sales revenue $7,030,000 Cost of goods sold Beginning inventory $1,950,000 Purchases 4,600,000 Goods available for sale 6,550,000 Ending inventory 1,680,000 Cost of goods sold 4,870,000 Gross profit 2,160,000 Operating expenses Selling expenses 500,000 Administrative expenses 640,000 1,140,000 Net income $1,020,000 Additional information: 1. Accounts receivable decreased $330,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $270,000 during the year. 4. Accrued expenses payable decreased $120,000 during the year. 5. Administrative expenses include depreciation expense of $60,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2025, for Sheridan 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).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![The income statement of Sheridan Company is shown below.
Sheridan Company
Income Statement
For the Year Ended December 31, 2025
Sales revenue
$7,030,000
Cost of goods sold
Beginning inventory
$1,950,000
Purchases
4,600,000
Goods available for sale
6,550,000
Ending inventory
1,680,000
Cost of goods sold
4,870,000
Gross profit
2,160,000
Operating expenses
Selling expenses
500,000
Administrative expenses
640,000
1,140,000
Net income
$1,020,000
Additional information:
1. Accounts receivable decreased $330,000 during the year.
2.
Prepaid expenses increased $160,000 during the year.
3.
Accounts payable to suppliers of merchandise decreased $270,000 during the year.
4.
Accrued expenses payable decreased $120,000 during the year.
5.
Administrative expenses include depreciation expense of $60,000.
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2025, for
Sheridan 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).)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feb922410-b3e6-45c9-8f3a-c47f13d6ac6a%2Fccbee5cb-5cdf-43b5-a6c9-4b2b05b50019%2Fj4rvx7h_processed.png&w=3840&q=75)
Transcribed Image Text:The income statement of Sheridan Company is shown below.
Sheridan Company
Income Statement
For the Year Ended December 31, 2025
Sales revenue
$7,030,000
Cost of goods sold
Beginning inventory
$1,950,000
Purchases
4,600,000
Goods available for sale
6,550,000
Ending inventory
1,680,000
Cost of goods sold
4,870,000
Gross profit
2,160,000
Operating expenses
Selling expenses
500,000
Administrative expenses
640,000
1,140,000
Net income
$1,020,000
Additional information:
1. Accounts receivable decreased $330,000 during the year.
2.
Prepaid expenses increased $160,000 during the year.
3.
Accounts payable to suppliers of merchandise decreased $270,000 during the year.
4.
Accrued expenses payable decreased $120,000 during the year.
5.
Administrative expenses include depreciation expense of $60,000.
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2025, for
Sheridan 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).)
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