Question

Selected balance sheet information and the income statement for Fountainhead Corporation for the current year are presented below.


Selected Balance Sheet Accounts
Prior Year Current Year
Accounts Receivable $15,000 $10,000
Merchandise Inventory 20,000 22,000
Prepaid Rent 1,000 0
Accounts Payable 11,000 14,000
Salaries and Wages Payable 2,000 3,000

Income Statement
Sales Revenue $300,000
Expenses:
Cost Of Goods Sold 180,000
Depreciation Expense 20,000
Salaries Expense 30,000
Rent Expense 12,000
Insurance Expense 12,000
Interest Expense 11,000
Utilities Expense 10,000
Net Income $25,000

Required:

Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Answer

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