Plough Company Reported Net Income of $180000 for the Current

question 6

Essay

Plough Company reported net income of $180000 for the current year. Depreciation recorded on buildings and equipment amounted to $80000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: $$\begin{array} { l r r } & \text { End of Year } & \text { Beginning of Year } \\\text { Cash } & \$ 20,000 & \$ 15,000 \\\text { Accounts receivable } & 24,000 & 32,000 \\\text { Inventories } & 50,000 & 65,000 \\\text { Prepaid expenses } & 9,500 & 5,000 \\\text { Accounts payable } & 12,000 & 18,000 \\\text { Income taxes payable } & 1,600 & 1,200\end{array}$$ Instructions
Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.

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