7. The net income for Gemini Company for2020 was $100,000. following are somefacts related to the Company:Depreciation Expense $14,000;Decrease in long-term bonds payable20,000 ;Increase in Accounts payable 5,000;Increase in salaries payable 9,000;Decrease in rent payable 3,000 ;Cash received from the sale of land 26,20%;loss on sale of land 7,500;Increase in accounts Payabledecrease in Inventory4,0003;15,000;Repayment of a bank loan 12,400;Using the indirect method, calculate the netcash flows from operating activities

Cash flow from operating activities using indirect method is computed by adjusting the change in…

7. The net income for Gemini Company for 2020 was $100,000. following are some facts related to the Company: Depreciation Expense Decrease in long-term bonds payable 20,000 ; Increase in Accounts payable 5,000; Increase in salaries payable 9,000; Decrease in rent payable 3,000 ; $14,000; Cash received from the sale of land 26,200; loss on sale of land 7,500; Increase in accounts Payable decrease in Inventory 4,0003; 15,000; Repayment of a bank loan 12,400; Using the indirect method, calculate the net cash flows from operating activities

7. The net income for Gemini Company for 2020 was $100,000. following are some facts related to the Company: Depreciation Expense Decrease in long-term bonds payable 20,000 ; Increase in Accounts payable 5,000; Increase in salaries payable 9,000; Decrease in rent payable 3,000 ; $14,000; Cash received from the sale of land 26,200; loss on sale of land 7,500; Increase in accounts Payable decrease in Inventory 4,0003; 15,000; Repayment of a bank loan 12,400; Using the indirect method, calculate the net cash flows from operating activities

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Use the following information about Can Corporation for 2012. Accounts payable increase $10,000 Accounts receivable increase 5,000 Accrued liabilities decrease 4,000 Amortization expense 7,000 Cash paid as dividends 30,000 Cash paid to purchase land 85,000 Cash paid to retire bonds payable at par 55,000 Cash received from issuance of common dock 40,000 Cash received from sale of equipment 20,000 Depreciation expense 30,000 Gain on sale of equipment 5,000 Inventory decrease 12,000 Net income 75,000 Prepaid expenses increase 1,000 What is the net cash flow from investing activities? a. ($73,000) b. ($65,000) c. ($85,000) d. $20,000
Explain how knowledge of managerial accounting can assist a manager with regard to the following concerns: He is deciding whether to push through with a project. He is determining whether a branch is profitable or not. He is deciding whether to process a certain product further before selling. He would like to show to the Board of Directors how the business is financially performing and how cash is being used. He would like to plan for the year so that he will be prepared to deal with shortage of cash fund.
See the explanation below to work the problem. XYZ Company, a 'for-profit' business, had revenues of $12 million in 2022. Expenses other than depreciation totaled 75 percent of revenues. XYZ Company, must pay taxes at a rate of 40 percent of pretax (operating) income. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash. Depreciation originally was $1.5 million; however, a change in the depreciation schedule (still within GAAP) has now made the depreciation expense DOUBLE. Based on this change in depreciation expense, what would XYZ's net income now be? Select one or more: a. so b. $3,000,000 c. $1,500,000 Od. Not enough information to tell
Target entered fiscal 2019 with a total capitalization of 21898 million. In 2019, debt investors received interest income of $875 million. Net income to shareholders was 8,648 million (assume a taxe rate of 21%) calculate the economic value added assuming its cost of capital is 10%
MANUAL SOLUTION AND CASH FLOW DIAGRAM !!
The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation: Cash and cash equivalents $ 5,000Accounts receivable (net) 20,000Inventory 60,000Property, plant, and equipment (net) 120,000Accounts payable 44,000Salaries payable 15,000Paid-in capital 100,000 The only asset not listed is short-term investments. The only liabilities not listed are $30,000 notes payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.5:1.Required:Determine the following…
aa.4
2. For the year 2021, Rattner Robotics had $5 million in operating income (EBIT). Its depreciation expense was $1.5 million, its interest expense was $1 million, and its corporate tax rate was 35%. At the end of year 2021, it had $10 million in operating current assets, $3 million in accounts payable, $1 million in accruals, and $2 million in notes payable. Assume Rattner has no excess cash and no other current liabilities. Assume that Rattner's only noncash item was depreciation. a) What was the company's net income for the year 2021?tion bona 158 b) What was its net operating working capital (NOWC) for the year 2021? c) Rattner reported $4 million in capital expenditure for the year of 2021. Rattner's NOWC for the prior year (year 2020) is $5.5 million. What is the company's free cash flow (FCF) for the year of 2021? (Hint: you need your results from part b to calculate this question).
A profitable company pays $98,000 wages and has depreciation expense of $98,000.
Net income $70,000, tax rate 25%, and loss from discontinued operations net of tax $5,000. Compute the income before income tax. Your answer This is a required question During 2021, Kamal Co. incurred average accumulated expenditures of $400,000 during construction of assets that qualified for capitalization of interest. The company has two debts outstanding during 2021. the first is a $500,000, 10%, 5- year note payable dated January 1, 2019. the second is a specific construction debt of $300,000, 8%, 3-year note payable dated September 1, 2020. 1- compute the amount of actual interest during 2021. 2- compute the amount of avoidable interest during 2021. Your answer This is a required question
S Company reported net income for 2021 in the amount of $400,000. The company's financial statements also included the following: Increase in accounts receivable $ 80,000 Decrease in inventory 60,000 Increase in accounts payable 200,000 Depreciation expense 104,000 Gain on sale of land 148,000 What is net cash provided by operating activities under the indirect method? O $432,000. O $536,000. O $580,000. O $832,000.
During the year, Pharr Corporation had sales of $459,000. Costs were $388,000 and depreciation expense was $102,800. In addition, the company had an interest expense of $79.250 and a tax rate of 21 percent. What is the operating cash flow for the year? Ignore any tax loss carry-forward provisions. Multiple Choice $72,733 $77,768 O $15,071