Following Are the Income Statement and Some Additional Information for Parson

question 136

Essay

Following are the income statement and some additional information for Parson Corporation for 2016.

All sales were on credit and accounts receivable increased by $600 in 2016 compared to 2015.Merchandise purchases were on credit with an increase in accounts payable of $400 during the year.Ending inventory was $500 larger than beginning inventory.Income taxes payable increased $300 during the year.All operating expenses were paid for in cash.
Required:
Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

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Definitions:

Public Relations

The practice of managing and disseminating information from an organization to the public to influence their perceptions.

Mass Selling

A marketing strategy that targets a large, general audience through widespread advertising and promotional techniques, contrary to personalized selling.

Personal Selling

A direct marketing approach where sales representatives engage with potential customers to sell products or services.

Public Relations

A process of strategic communication aimed at developing beneficial relationships between organizations and their stakeholders.