A1 20The income statement of Indigo Company is shown below.Indigo CompanyIncome StatementFor the Year Ended December 31, 2025Sales revenueCost of goods soldBeginning inventoryPurchasesGoods available for saleEnding inventoryCost of goods soldGross profitOperating expensesSelling expensesAdministrative expensesNet incomeAdditional information:2$1,920,0004,390,0006,310,0001,580,000460,000710,000$6,840,0004,730,0002,110,0001,170,000$940,0001. Accounts receivable decreased $350,000 during the year.Prepaid expenses increased $160,000 during the year.3. Accounts payable to suppliers of merchandise decreased $280,000 during the year.4. Accrued expenses payable decreased $100,000 during the year.5. Administrative expenses include depreciation expense of $50,000. Prepare the operating activities section of the statement of cash flows using the direct method.INDIGO COMPANYPartial Statement of Cash FlowseTextbook and Media<<>S$Assistance Used

Cash flow from the operating activity is a part of the cash flow statement prepared by the business…

00 The income statement of Indigo Company is shown below. Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Operating expenses Selling expenses Indigo Company Income Statement For the Year Ended December 31, 2025 Administrative expenses Net income Additional information: 1. 2 3. $1,920,000 4,390,000 6,310,000 1,580,000 460,000 710,000 $6,840,000 Accounts receivable decreased $350,000 during the year. Prepaid expenses increased $160,000 during the year. Accounts payable to suppliers of merchandise decreased $280,000 during the year.. 4. Accrued expenses payable decreased $100,000 during the year. 5. Administrative expenses include depreciation expense of $50,000. 4,730,000 2,110,000 1,170,000 $940,000

00 The income statement of Indigo Company is shown below. Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Operating expenses Selling expenses Indigo Company Income Statement For the Year Ended December 31, 2025 Administrative expenses Net income Additional information: 1. 2 3. $1,920,000 4,390,000 6,310,000 1,580,000 460,000 710,000 $6,840,000 Accounts receivable decreased $350,000 during the year. Prepaid expenses increased $160,000 during the year. Accounts payable to suppliers of merchandise decreased $280,000 during the year.. 4. Accrued expenses payable decreased $100,000 during the year. 5. Administrative expenses include depreciation expense of $50,000. 4,730,000 2,110,000 1,170,000 $940,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 73BPSB: ( Appendix 6B) Inventory Costing Methods Grencia Company uses a periodic inventory system. For 2018...

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