Data for Toby Zed NV are presented in P17.3.
Instructions
Prepare the operating activities section of the statement of cash fl ows using the direct method.
P17.3
The income statement of Toby Zed NV is presented here.
Additional information:
1. Accounts receivable increased €200,000 during the year, and inventory decreased €500,000.
2. Prepaid expenses increased €175,000 during the year.
3. Accounts payable to suppliers of merchandise decreased €340,000 during the year.
4. Accrued expenses payable decreased €105,000 during the year.
5. Operating expenses include depreciation expense of €85,000.
