Question

The current sections of Scoggin Inc.’s balance sheets at December 31, 2016 and 2017, are presented here.

Scoggin’s net income for 2017 was $151,700. Depreciation expense was $24,300.

		2017		2016
Current assets
Cash		$103,000		$98,300
Accounts receivable		108,400		77,900
Inventory		157,700		171,100
Prepaid expenses		26,500		25,100
Total current assets		$395,600		$372,400
Current liabilities
Accrued expenses payable		$15,400		$9,100
Accounts payable		85,200		95,300
Total current liabilities		$100,600		$104,400

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. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer 1

net cash provided by operating activities
Net income	1,51,700
Adjustment to reconcile net income to  net cash provided by operating activities
Add: Depreciation	24,300
Changes in Working Capital
Add:
Decrease in  Inventory	13,400
Increase in Accrued expenses payable	6,300
Less:
Increase in    Cash	-4,700
Increase in Accounts Receivable	-30,500
Increase in Prepaid Expenses	-1,400
Decrease in  Accounts Payable	-10,100
The  net cash provided by operating activities	1,49,000

Note :

		2017	2016	Change in Working Capital (2017-2016)
Current assets
Cash		103000	98300	4700
Accounts receivable		1,08,400	77,900	30500
Inventory		1,57,700	1,71,100	-13400
Prepaid expenses		26,500	25,100	1400
Total current assets		395600	372400	372400
Current liabilities
Accrued expenses payable		15400	9100	6300
Accounts payable		85,200	95,300	-10100
Total current liabilities		100600	104400	-3800