The income statement of Stalwart Ltd is shown below:
Additional information:
1. Accounts receivable increased $400,000 during the year.
2. Inventory increased $250,000 during the year.
3. Prepaid expenses increased $200,000 during the year.
4. Accounts payable to merchandise suppliers increased $100,000 during the year.
5. Accrued expenses payable increased $180,000 during the year.
Required: Prepare the operating activities section of the statement of cash flows for the year ended 31 December 2020, for Stalwart Ltd.

Question

The income statement of Stalwart Ltd is shown below:
  Additional information:
1. Accounts receivable increased $400,000 during the year.
2. Inventory increased $250,000 during the year.
3. Prepaid expenses increased $200,000 during the year.
4. Accounts payable to merchandise suppliers increased $100,000 during the year.
5. Accrued expenses payable increased $180,000 during the year.
Required: Prepare the operating activities section of the statement of cash flows for the year ended 31 December 2020, for Stalwart Ltd.

Quizplus · Accepted Answer

The Answer of The income statement of Stalwart Ltd is shown below:
  Additional information:
1. Accounts receivable increased $400,000 during the year.
2. Inventory increased $250,000 during the year.
3. Prepaid expenses increased $200,000 during the year.
4. Accounts payable to merchandise suppliers increased $100,000 during the year.
5. Accrued expenses payable increased $180,000 during the year.
Required: Prepare the operating activities section of the statement of cash flows for the year ended 31 December 2020, for Stalwart Ltd.

The Income Statement of Stalwart Ltd Is Shown Below