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Solution Note : Inventory decreased = Beginning Inventory - Ending inventory Inventory decreased = 1900000 - 1600000 Inventory decreased = 300000 .

(Preparation of Operating Activities Section
(Preparation of Operating Activities Section
Solution
Note :
Inventory decreased = Beginning Inventory - Ending inventory
Inventory decreased = 1900000 - 1600000
Inventory decreased = 300000
VINCE GILL COMPANY
Partial Statement of Cash Flows
For The Year Ended December 31, 2014
Cash flows from operating activities
Net income
1,050,00
0
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation Expenses 60000
Inventory decreased 300000
Accounts receivable decreased 310000
Prepaid expenses increased -170000
Accounts payable to suppliers of merchandise decreased -275000
Accrued expenses payable decreased -120000 105,000
Net cash provided by operating activities 1,155,000

(Preparation of Operating Activities Section (Preparation of Op.docx

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1. (Preparation of Operating Activities Section (Preparation of Operating Activities Section Solution Note : Inventory decreased = Beginning Inventory - Ending inventory Inventory decreased = 1900000 - 1600000 Inventory decreased = 300000 VINCE GILL COMPANY Partial Statement of Cash Flows For The Year Ended December 31, 2014 Cash flows from operating activities Net income 1,050,00 0 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Expenses 60000 Inventory decreased 300000 Accounts receivable decreased 310000 Prepaid expenses increased -170000 Accounts payable to suppliers of merchandise decreased -275000 Accrued expenses payable decreased -120000 105,000 Net cash provided by operating activities 1,155,000