The Current Sections of Donny Inc Instructions
Prepare the Net Cash Provided by Operating Activities Section

question 212

Essay

The current sections of Donny Inc.'s balance sheets at December 31 2016 and 2017 are presented here.
Donny's net income for 2017 was $203000. Depreciation expense was $25000. $\begin{array}{lrr}&2016&2017\\\text { Current assets }\\ \text { Cash } & \$ 115,000 & \$ 99,000 \\\text { Accounts receivable } & 105,000 & 89,000 \\\text { Inventory } & 154,000 & 172,000 \\\text { Prepaid expense } & 27.000 & 21,000 \\\\\text { Current liabilities }\\\text { Accrued expenses payable } & \$ 15,000 & \$ 5,000 \\\text { Accounts payable } & \underline{85,000} & \underline{93,000} \\\quad \text { Total current liabilities } & \$ 100,000 & \$ 98,000 \\\end{array}$ Instructions
Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31 2017 using the indirect method.

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Definitions:

Foreign Exchange Transactions

Trades between two parties to exchange one currency for another, determining the relative value of different currencies.

Largest Stock Market

Typically refers to the New York Stock Exchange (NYSE) or the NASDAQ, both of which are among the largest and most influential stock markets globally.

Expected Return

The average amount of profit or loss one can anticipate on an investment, accounting for the probabilities of varying outcomes.

Standard Deviation

A statistic that measures the dispersion of dataset relative to its mean and is calculated as the square root of the variance.