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The income statement for Piura Merchandising Corporation is as follows: Piura Merchandising Corporation Income Statement At...

The income statement for Piura Merchandising Corporation is as follows:

Piura Merchandising Corporation
Income Statement
At December 31, 2015
Sales $ 1,575,000
Less: Cost of goods sold
Beginning inventory $ 385,000
Purchases 705,000
Ending inventory (295,000)
(795,000)
Less: Depreciation expense (62,000)
Less: Amortization of patent (15,000)
Less: Wages expense (69,000)
Less: Insurance expense (36,500)
Income before taxes $ 597,500
Less: Income taxes (all current) (102,500)
Net income $ 495,000

Other information is as follows:

A. Accounts payable decreased by $20,000 during the year.
B. Accounts receivable increased by $17,000.
C. All wages were paid at the beginning of the year; at the end of the year, wages payable had a balance of $12,000.
D. Prepaid insurance increased by $24,000 during the year.

Prepare a schedule that provides the operating cash flows for the year using the indirect method.

Business   Accounting   
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