Question

Exercise 13-5

The current sections of Scoggin Inc.’s balance sheets at December 31, 2016 and 2017, are presented here.

Scoggin’s net income for 2017 was $150,500. Depreciation expense was $25,000.

2017
2016
Current assets
   Cash
$107,500
$97,200
   Accounts receivable
108,300
77,200
   Inventory
159,000
172,100
   Prepaid expenses
26,200
25,000
      Total current assets
$401,000
$371,500
Current liabilities
   Accrued expenses payable
$14,400
$8,100
   Accounts payable
85,700
95,900
      Total current liabilities
$100,100
$104,000

Prepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2017, 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).)

SCOGGIN INC.
Partial Statement of Cash Flows

For the Year Ended December 31, 2017
For the Month Ended December 31, 2017
December 31, 2017

Cash at Beginning of Period
Cash at End of Period
Cash Flows from Financing Activities
Cash Flows from Investing Activities
Cash Flows from Operating Activities
Net Cash Provided by Financing Activities
Net Cash Provided by Investing Activities
Net Cash Provided by Operating Activities
Net Cash Used by Financing Activities
Net Cash Used by Investing Activities
Net Cash Used by Operating Activities
Net Decrease in Cash
Net Increase in Cash
    
Decrease in Prepaid Expenses    
Increase in Accounts Receivable    
Decrease in Accounts Payable    
Decrease in Accounts Receivable    
Increase in Accounts Payable    
Increase in Inventory    
Net Income    
Increase in Accrued Expenses Payable    
Depreciation Expense    
Decrease in Inventory    
Decrease in Accrued Expenses Payable    
Increase in Prepaid Expenses    
$
Adjustments to reconcile net income to

Cash at Beginning of Period
Cash at End of Period
Cash Flows from Financing Activities
Cash Flows from Investing Activities
Cash Flows from Operating Activities
Net Cash Provided by Financing Activities
Net Cash Provided by Investing Activities
Net Cash Provided by Operating Activities
Net Cash Used by Financing Activities
Net Cash Used by Investing Activities
Net Cash Used by Operating Activities
Net Decrease in Cash
Net Increase in Cash
    
Increase in Accounts Payable    
Decrease in Accrued Expenses Payable    
Decrease in Prepaid Expenses    
Net Income    
Decrease in Accounts Receivable    
Decrease in Accounts Payable    
Increase in Accounts Receivable    
Increase in Prepaid Expenses    
Depreciation Expense    
Decrease in Inventory    
Increase in Inventory    
Increase in Accrued Expenses Payable    
$
    
Decrease in Accrued Expenses Payable    
Increase in Inventory    
Increase in Accrued Expenses Payable    
Increase in Accounts Payable    
Decrease in Accounts Receivable    
Increase in Prepaid Expenses    
Net Income    
Depreciation Expense    
Decrease in Accounts Payable    
Decrease in Prepaid Expenses    
Increase in Accounts Receivable    
Decrease in Inventory    
    
Increase in Accounts Payable    
Decrease in Accrued Expenses Payable    
Increase in Accrued Expenses Payable    
Depreciation Expense    
Decrease in Inventory    
Increase in Accounts Receivable    
Decrease in Accounts Receivable    
Increase in Inventory    
Increase in Prepaid Expenses    
Decrease in Accounts Payable    
Net Income    
Decrease in Prepaid Expenses    
    
Decrease in Accounts Payable    
Increase in Accounts Payable    
Net Income    
Increase in Accrued Expenses Payable    
Decrease in Accounts Receivable    
Increase in Prepaid Expenses    
Decrease in Prepaid Expenses    
Decrease in Accrued Expenses Payable    
Depreciation Expense    
Increase in Accounts Receivable    
Decrease in Inventory    
Increase in Inventory    
    
Decrease in Accounts Receivable    
Increase in Prepaid Expenses    
Increase in Accounts Payable    
Increase in Accounts Receivable    
Decrease in Prepaid Expenses    
Net Income    
Increase in Inventory    
Decrease in Accounts Payable    
Decrease in Inventory    
Depreciation Expense    
Increase in Accrued Expenses Payable    
Decrease in Accrued Expenses Payable    
    
Increase in Accounts Receivable    
Decrease in Accounts Payable    
Decrease in Prepaid Expenses    
Increase in Accounts Payable    
Decrease in Accounts Receivable    
Net Income    
Depreciation Expense    
Increase in Inventory    
Decrease in Inventory    
Increase in Accrued Expenses Payable    
Decrease in Accrued Expenses Payable    
Increase in Prepaid Expenses    
    
Cash at Beginning of Period    
Cash at End of Period    
Cash Flows from Financing Activities    
Cash Flows from Investing Activities    
Cash Flows from Operating Activities    
Net Cash Provided by Financing Activities    
Net Cash Provided by Investing Activities    
Net Cash Provided by Operating Activities    
Net Cash Used by Financing Activities    
Net Cash Used by Investing Activities    
Net Cash Used by Operating Activities    
Net Decrease in Cash    
Net Increase in Cash    
$

LINK TO TEXT

Answer 1

SCOGGIN INC.
Partial Statement of Cash Flows
For the Year Ended December 31, 2017
Cash Flows from Operating Activities
Net income		150500
Adjustments to reconcile net income to
Net cash provided by operating activities
Depreciation expense	25000
Increase in accounts receivable	-31100
Decrease in inventory	13100
Increase in prepaid expenses	-1200
Increase in accrued expenses payable	6300
Decrease in accounts payable	-10200	1900
Net cash provided by operating activities		152400