Best Wishes Company had the following information for the year ended December 31, 2011:
Additional information:
a. Accounts receivable increased by $12,000.
b. Inventories increased by $28,000.
c. Prepaid expenses increased by $1,200.
d. Accounts payable to merchandise suppliers increased by $19,000.
e. Accrued expenses payable increased by $9,000.
Required: Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2013, for Best Wishes Company, using the direct method.

Question

Best Wishes Company had the following information for the year ended December 31, 2011:
  Additional information: 
a. Accounts receivable increased by $12,000.
b. Inventories increased by $28,000.
c. Prepaid expenses increased by $1,200.
d. Accounts payable to merchandise suppliers increased by $19,000.
e. Accrued expenses payable increased by $9,000.
Required: Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2013, for Best Wishes Company, using the direct method.

Quizplus · Accepted Answer

The Answer of Best Wishes Company had the following information for the year ended December 31, 2011:
  Additional information: 
a. Accounts receivable increased by $12,000.
b. Inventories increased by $28,000.
c. Prepaid expenses increased by $1,200.
d. Accounts payable to merchandise suppliers increased by $19,000.
e. Accrued expenses payable increased by $9,000.
Required: Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2013, for Best Wishes Company, using the direct method.

Best Wishes Company Had the Following Information for the Year