E14-5 The current sections of Bellinham Inc.’s balance sheets at December 31, 2007 and 2008,

Price: $1.99


E14-5 The current sections of Bellinham Inc.’s balance sheets at December 31, 2007 and 2008,
are presented here.

Bellinham’s net income for 2008 was $153,000. Depreciation expense was $24,000.

		2008	2007
Current assets:
Cash		105,000	99,000
Accounts receivable		110,000	89,000
Inventory		158,000	172,000
Prepaid expenses		27,000	22,000
Total current assets		400,000	382,000
Current liabilities:
Accrued expenses payable		15,000	5,000
Accounts payable		85,000	92,000
Total current liabilities		100,000	97,000

Instructions

Prepare the net cash provided by operating activities section of the company’s statement of cash
flows for the year ended December 31, 2008, using the indirect method.