Below Is the 2017 Income Statement for the Critters Corporation

question 111

Essay

Below is the 2017 income statement for the Critters Corporation. Additional Information:
Accounts receivable increased by $8,000.
Merchandise inventory increased by $4,000.
Accounts payable increased by $6,000.
Prepaid expenses decreased by $2,000.
Accrued liabilities decreased by $5,000.
Interest payable increased by $1,000.
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method for the year ended December 31, 2017.

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Definitions:

Business Cycle

The fluctuation in economic activity that an economy experiences over a period, characterized by periods of expansion and contraction.

Troughs

The low points in the economic cycle, characterized by reduced economic activity and lower levels of production and employment.

Unanticipated Inflation

A rate of inflation that is either higher or lower than expected.

Creditors and Debtors

Creditors are entities or individuals to whom money is owed, while debtors are those who owe money to another party.