Question

The income statement of Martinez Corp. is presented here.

Martinez Corp. Income Statement For the Year Ended November 30, 2017
Sales revenue				$7,697,000
Cost of goods sold
Beginning inventory		$1,893,400
Purchases		4,315,800
Goods available for sale		6,209,200
Ending inventory		1,568,500
Total cost of goods sold				4,640,700
Gross profit				3,056,300
Operating expenses
Selling expenses		446,100
Administrative expenses		693,000		1,139,100
Net income				$1,917,200

Additional information:

1.		Accounts receivable decreased $386,500 during the year, and inventory decreased $324,900.
2.		Prepaid expenses increased $147,600 during the year.
3.		Accounts payable to suppliers of merchandise decreased $346,300 during the year.
4.		Accrued expenses payable decreased $98,700 during the year.
5.		Administrative expenses include depreciation expense of $111,200.

Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2017, for Martinez Corp., using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Martinez Corp. Partial Statement of Cash Flows                                                           November 30, 2017For the Year Ended November 30, 2017For the Quarter Ended November 30, 2017
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income		$
Adjustments to reconcile net income to
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income	$
Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income
Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income
Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income
Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income
Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash		$

Answer 1

Answer-

MARTINEZ CORP.
STATEMENT OF CASH FLOWS PARTIAL (USING INDIRECT METHOD)
FOR THE YEAR ENDED NOVEMBER 30,2017
Particulars		Amount
		$
Cash flow from operating activities
Net Income		1917200
Adjustments to reconcile net income to net cash provided by operating activities
Adjustment for non cash effects
Depreciation expenses		111200
Change in operating assets & liabilities
Decrease in accounts receivable		386500
Decrease in inventory		324900
Increase in prepaid expenses		-147600
Decrease in accounts payable		-346300
Decrease in accrued expenses payable		-98700
Net cash flow from operating activities		2147200