Prepare operating activities section of cash flow statement

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Reference no: EM133161301

Question - The current assets and liabilities sections of the comparative balance sheet of Crane Inc., a private company reporting under ASPE, at October 31 are presented below, along with the income statement:

CRANE INC. Comparative Balance Sheet Accounts


2021

2020

Cash

$23,760

$25,200

Accounts receivable

15,360

9,840

Inventory

7,800

11,040

Prepaid expenses

1,800

1,392

Accounts payable

10,320

8,640

Accrued expenses payable

1,200

1,920

Dividends payable

5,760

4,080

Income taxes payable

1,632

2,832

 

CRANE INC. Income Statement Year Ended October 31, 2021

Sales


$150,000

Cost of goods sold


93,600

Gross profit


56,400

Operating expenses

$21,120


Depreciation expense

5,520


Loss on sale of equipment

1,920

28,560

Profit before income taxes


27,840

Income taxes


6,960

Profit


$20,880

Required - Prepare the operating activities section of the cash flow statement using the indirect method.

Reference no: EM133161301

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