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Question: Schedule of Operating Cash Flows: Indirect Method The income statement for the Mendelin Corporation is as follows:
Additional information is as follows:
a. Interest expense includes $1,800 of discount amortization.
b. The prepaid insurance expense account decreased by $2,000 during the year.
c. Wages payable decreased by $3,000 during the year.
d. Accounts payable increased by $7,500 (this account is for purchase of merchandise only).
e. Accounts receivable increased by $10,000 (net of allowance for doubtful accounts).
Required: Prepare a schedule of operating cash flows using the indirect method.
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