Chapter 13, Problem 13.5E

The current sections of Scoggin Inc.’s balance sheets at December 31, 2016 and 2017, are presented here. Scoggins net income for 2017 was $153,000. Depreciation expense was $24,000.

	2017	2016
Current assets
Cash	$105,000	$ 99,000
Accounts receivable	110,000	89,000
Inventory	158,000	172,000
Prepaid expenses	27,000	22,000
Total current assets	$400,000	$382,000
Current liabilities
Accrued expenses payable	$ 15,000	$ 5,000
Accounts payable	85,000	92,000
Total current liabilities	$100,000	$ 97,000

Instructions

Prepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2017, using the indirect method.