The current sections of Blues Traveler Co. balance sheets at December 31, 2007 and 2008, are… 1 answer below »
The current sections of Blues Traveler Co. balance sheets at December 31, 2007 and 2008, are presented below.
BLUES TRAVELER CO.
Comparative Balance Sheets (partial)
December 31
2008
2007
Current Assets
Cash
$105,000
$99,000
Accounts receivable
110,000
85,000
Inventory
171,000
186,000
Prepaid expenses
27,000
32,000
Total current assets
$413,000
$402,000
Current liabilities
Accrued expenses payable
$15,000
5,000
Accounts payable
88,000
$92,000
Total current liabilities
$103,000
$97,000
Blues Traveler’s net income for 2008 was $163,000. Depreciation expense was $30,000.
Instructions
Prepare the operating activities section of Blues Traveler’s statement of cash flows for the year ended December 31, 2008, using the indirect method.
