Best Wishes Company Had the Following Information for the Year

question 23

Essay

Best Wishes Company had the following information for the year ended December 31, 2011:
Additional information:
a. Accounts receivable increased by $12,000.
b. Inventories increased by $28,000.
c. Prepaid expenses increased by $1,200.
d. Accounts payable to merchandise suppliers increased by $19,000.
e. Accrued expenses payable increased by $9,000.
Required: Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2013, for Best Wishes Company, using the direct method.

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Definitions:

Berries

Small, juicy fruits that are typically round, soft, and of various colors - eaten as food.

Nuts

In an economic context, refers to commodities or tangible goods that are traded, consumed, and can affect markets, but more generally just a type of food.

Utility Function

A mathematical representation in economics that quantifies an individual's preference for certain goods or outcomes over others.

Nuts

Edible seeds typically encased in a hard shell, commonly consumed as snacks or used in various recipes.