The income statement of Skysong Company is shown below. Skysong Company Income Statement For the Year Ended December 31, 2025 Sales revenue $6,910,000 Cost of goods sold Beginning inventory $1,860,000 Purchases 4,820,000 Goods available for sale 6,680,000 Ending inventory 1,560,000 Cost of goods sold 5,120,000 Gross profit 1,790,000 Operating expenses Selling expenses 450,000 Administrative expenses 710,000 1,160,000 Administrative expenses 710,000 1,160,000 Net income $630,000 Additional information: 1. Accounts receivable decreased $340,000 during the year. 2. Prepaid expenses increased $150,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $250,000 during the year. 4. Accrued expenses payable decreased $130,000 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 Skysong Company, using the indirect method. (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis e.g. (15,000).) SKYSONG COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2025 Cash Flows from Operating Activities Net Income 630,000 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Decrease in Accounts Receivable Decrease in Inventory Increase in Prepaid Expenses Net Cash Provided by Operating Activities Depreciation Expense Decrease in Accounts Receivable Decrease in Inventory Increase in Prepaid Expenses $ 60,000 340,000 -300,000 (150,000) 60,000 340,000 -300,000 (150,000) Decrease in Accounts Payable (250,000) Decrease in Accrued Expenses Payable (130,000) Net Cash Provided by Operating Activities 170,000 $ 800.000
The income statement of Skysong Company is shown below. Skysong Company Income Statement For the Year Ended December 31, 2025 Sales revenue $6,910,000 Cost of goods sold Beginning inventory $1,860,000 Purchases 4,820,000 Goods available for sale 6,680,000 Ending inventory 1,560,000 Cost of goods sold 5,120,000 Gross profit 1,790,000 Operating expenses Selling expenses 450,000 Administrative expenses 710,000 1,160,000 Administrative expenses 710,000 1,160,000 Net income $630,000 Additional information: 1. Accounts receivable decreased $340,000 during the year. 2. Prepaid expenses increased $150,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $250,000 during the year. 4. Accrued expenses payable decreased $130,000 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 Skysong Company, using the indirect method. (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis e.g. (15,000).) SKYSONG COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2025 Cash Flows from Operating Activities Net Income 630,000 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Decrease in Accounts Receivable Decrease in Inventory Increase in Prepaid Expenses Net Cash Provided by Operating Activities Depreciation Expense Decrease in Accounts Receivable Decrease in Inventory Increase in Prepaid Expenses $ 60,000 340,000 -300,000 (150,000) 60,000 340,000 -300,000 (150,000) Decrease in Accounts Payable (250,000) Decrease in Accrued Expenses Payable (130,000) Net Cash Provided by Operating Activities 170,000 $ 800.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Please give the correct answers to the numbers highlighted in red. The numbers in red are not correct.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education