Below is the 2017 income statement for the Critters Corporation. Additional Information:
Accounts receivable increased by $8,000.
Merchandise inventory increased by $4,000.
Accounts payable increased by $6,000.
Prepaid expenses decreased by $2,000.
Accrued liabilities decreased by $5,000.
Interest payable increased by $1,000.
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method for the year ended December 31, 2017.

Question

Below is the 2017 income statement for the Critters Corporation.  Additional Information:
Accounts receivable increased by $8,000.
Merchandise inventory increased by $4,000.
Accounts payable increased by $6,000.
Prepaid expenses decreased by $2,000.
Accrued liabilities decreased by $5,000.
Interest payable increased by $1,000.
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method for the year ended December 31, 2017.

Quizplus · Accepted Answer

The Answer of Below is the 2017 income statement for the Critters Corporation.  Additional Information:
Accounts receivable increased by $8,000.
Merchandise inventory increased by $4,000.
Accounts payable increased by $6,000.
Prepaid expenses decreased by $2,000.
Accrued liabilities decreased by $5,000.
Interest payable increased by $1,000.
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method for the year ended December 31, 2017.

Below Is the 2017 Income Statement for the Critters Corporation