The Income Statement of Stewart Limited Is Shown Below

question 100

Essay

The income statement of Stewart Limited is shown below: Additional information:
1. Accounts receivable decreased $300,000 during the year.
2. Inventory decreased $175,000 during the year.
3. Prepaid expenses increased $200,000 during the year.
4. Accounts payable to merchandise suppliers increased $160,000 during the year.
5. Accrued expenses payable increased $120,000 during the year.
Instructions
Prepare the operating activities section of the cash flow statement for the year ended December 31, 2014, for Stewart Limited, using the direct method.

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Definitions:

Hamburgers

A popular food item typically consisting of a ground meat patty placed inside a bun, often served with various condiments and toppings.

Normal Good

A product whose demand increases when consumers' income rises, and falls when income decreases, under the assumption all other factors remain constant.

Income

Steady income derived from professional efforts or investing.

Hamburgers

A widely enjoyed dish made from a patty of minced meat, typically beef, served between the halves of a cut bun.