Reference no: EM13526609

The income statement of Hauser Company is presented on the next page. Additional information:

1. Accounts receivable decreased $290,000 during the year, and inventory increased $140,000.

2. Prepaid expenses increased $175,000 during the year.

3. Accounts payable to merchandise suppliers increased $63,000 during the year.

4. Accrued expenses payable increased $145,000 during the year.

HAUSER COMPANY  Income Statement  For the Year Ended December 31, 2012
Sales		$5,200,000
Cost of goods sold
Beginning inventory	$1,780,000
Purchases	3,430,000
Goods available for sale	5,210,000
Ending inventory	1,920,000
Total cost of goods sold		3,290,000
Gross profit		1,910,000
Operating expenses
Selling expenses	420,000
Administrative expense	525,000
Depreciation expense	105,000
Amortization expense	15,000	1,065,000
Net income		$ 845,000

Instructions

Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2012, for Hauser Company, using the indirect method.