Annapolis Company reported net income of $365,000 for the current year. Depreciation recorded on buildings and equipment amounted to $73,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $22,000 $15,000 Accounts receivable
17,000 32,000 Inventory
55,000 65,000 Prepaid insurance
7,500 5,000 Accounts payable
11,000 18,000 Income taxes payable
600 1,200 Instructions
Instructions
Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.