The statement of income of Pina Colada Corporation is presented here. PINA COLADA CORPORATION Statement of Income Year Ended November 30, 2025 Sales $8,162,000 Cost of goods sold 5,194,000 Gross profit 2,968,000 Salaries expense 907,360 Operating expenses 226,840 Depreciation expense 84,800 Income before income tax 1,749,000 Income tax expense 261,820 Net income $1,487,180 Additional information: 1. Accounts receivable increased $318,000 during the year, and inventory decreased $530,000. 2. Prepaid expenses, which relate to administrative expenses, increased $159,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $371,000 during the year. 4. Accrued salaries payable decreased $106,000 during the year. 5. Income tax payable increased $68,900 during the year. -79 (a) Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2025, for Pina Colada Corporation using the indirect method. (Show amounts that decrease cash flow with either a-sign eg. -15,000 or in parenthesis e.g. (15,000).)

The statement of income of Pina Colada Corporation is presented here. PINA COLADA CORPORATION Statement of Income Year Ended November 30, 2025 Sales $8,162,000 Cost of goods sold 5,194,000 Gross profit 2,968,000 Salaries expense 907,360 Operating expenses 226,840 Depreciation expense 84,800 Income before income tax 1,749,000 Income tax expense 261,820 Net income $1,487,180 Additional information: 1. Accounts receivable increased $318,000 during the year, and inventory decreased $530,000. 2. Prepaid expenses, which relate to administrative expenses, increased $159,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $371,000 during the year. 4. Accrued salaries payable decreased $106,000 during the year. 5. Income tax payable increased $68,900 during the year. -79 (a) Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2025, for Pina Colada Corporation using the indirect method. (Show amounts that decrease cash flow with either a-sign eg. -15,000 or in parenthesis e.g. (15,000).)

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.8E: Income Statement Ratio The income statement of Holly Enterprises shows operating revenues of...

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Income Statement Ratio The income statement of Holly Enterprises shows operating revenues of $134,800, selling expenses of $38,310, general and administrative expenses of $36,990, interest expense of $580, and income tax expense of $13,920. Hollys stockholders equity was $280,000 at the beginning of the year and $320,000 at the end of the year. The company has 20,000 shares of stock outstanding at the end of the year. Required Compute Hollys profit margin. What other information would you need in order to comment on whether this ratio is favorable?