Exercise 18.

3 Cash flow from operating activities, indirect method

The simple income statement for Jack’s Blinds is shown below:

JACK’S BLINDS
Income Statement
for the year ended 30 June 2017
Sales $435 000
Less: Cost of sales
Beginning inventory $68 500
Purchases 160  000
Goods available for sale 228 500
Ending Inventory 58  500
Cost of sales 170  000
GROSS PROFIT 265 000
Expenses
Selling expenses 75 000
Administrative expenses 91 500 166  500
Profit $98  500

Additional information
1. Accounts receivable increased by $8250 during the year.
2. Accounts payable to suppliers of inventory increased by $3250 during the year.
3. Wages payable decreased by $6250 during the year (including selling expenses).
4. Administrative expenses include depreciation expense of $31 500.

Required
Prepare the net cash flows from operating activities for the year ended 30 June 2017 for Jack’s Blinds
using the indirect method.