The statement of income of Pina Colada Corporation is presented here. PINA COLADA CORPORATION Statement of Income Year Ended November 30, 2025 Sales $8,162,000 Cost of goods sold 5,194,000 Gross profit 2,968,000 Salaries expense 907,360 Operating expenses 226,840 Depreciation expense 84,800 Income before income tax 1,749,000 Income tax expense 261,820 Net income $1,487,180 Additional information: 1. Accounts receivable increased $318,000 during the year, and inventory decreased $530,000. 2. Prepaid expenses, which relate to administrative expenses, increased $159,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $371,000 during the year. 4. Accrued salaries payable decreased $106,000 during the year. 5. Income tax payable increased $68,900 during the year. -79 (a) Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2025, for Pina Colada Corporation using the indirect method. (Show amounts that decrease cash flow with either a-sign eg. -15,000 or in parenthesis e.g. (15,000).)
The statement of income of Pina Colada Corporation is presented here. PINA COLADA CORPORATION Statement of Income Year Ended November 30, 2025 Sales $8,162,000 Cost of goods sold 5,194,000 Gross profit 2,968,000 Salaries expense 907,360 Operating expenses 226,840 Depreciation expense 84,800 Income before income tax 1,749,000 Income tax expense 261,820 Net income $1,487,180 Additional information: 1. Accounts receivable increased $318,000 during the year, and inventory decreased $530,000. 2. Prepaid expenses, which relate to administrative expenses, increased $159,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $371,000 during the year. 4. Accrued salaries payable decreased $106,000 during the year. 5. Income tax payable increased $68,900 during the year. -79 (a) Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2025, for Pina Colada Corporation using the indirect method. (Show amounts that decrease cash flow with either a-sign eg. -15,000 or in parenthesis e.g. (15,000).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The statement of income of Pina Colada Corporation is presented here.
PINA COLADA CORPORATION
Statement of Income
Year Ended November 30, 2025
Sales
$8,162,000
Cost of goods sold
5,194,000
Gross profit
2,968,000
Salaries expense
907,360
Operating expenses
226,840
Depreciation expense
84,800
Income before income tax
1,749,000
Income tax expense
261,820
Net income
$1,487,180
Additional information:
1. Accounts receivable increased $318,000 during the year, and inventory decreased $530,000.
2.
Prepaid expenses, which relate to administrative expenses, increased $159,000 during the year.
3.
Accounts payable to suppliers of merchandise decreased $371,000 during the year.
4.
Accrued salaries payable decreased $106,000 during the year.
5. Income tax payable increased $68,900 during the year.
-/9
(a) Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2025, for Pina Colada
Corporation using the indirect method. (Show amounts that decrease cash flow with either a - -sign e.g. -15,000 or in parenthesis eg.
(15,000).)
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