A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of cash flows (indirect method), this event would be reflected as a(n) cash inflow from financing activities. addition adjustment to net income in the cash flows from operating activities section. cash outflow from investing activities. cash inflow from investing activities.
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A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of
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- Cash received from long-term notes payable Purchase of investments Cash dividends paid Interest paid Financing Activities $ 56,000 14, 200 Compute cash flows from financing activities using the above company information. Note: Amounts to be deducted should be indicated by a minus sign. $ 45,600 22,800 0The income statement and the cash flows from operating activities section of the statement of cash flows are provided below for Syntric Company. The merchandise inventory account balance neither increased nor decreased during the reporting period. Syntric had no liability for insurance, deferred income taxes, or interest at any time during the period. Sales Cost of goods sold Gross margin Salaries expense Insurance expense Depreciation expense Depletion expense Interest expense Gains and losses: Gain on sale of equipment Loss on sale of land Income before tax Income tax expense SYNTRIC COMPANY Income Statement For the Year Ended December 31, 2024 ($ in thousands) Net income Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid to employees Cash paid for interest Cash paid for insurance Cash paid for income tax Net cash flows from operating activities $35.0 16.9 9.0 3.4 10.4 $ 271.7 (168.8) 102.9 (74.7) 19.0 (6.4) 40.8 (20.4) $ 20.4 $225.0…Entity L reported net income of $125,000 for the current year and uses the indirect method to report operating activities cash flow. Accounts Receivable increased by $14,000 during the year. Choose the appropriate category on the statement of cash flows to report the increase in Accounts Receivable. Cash Flows From Operating Activities-Add to Net Income Cash Flows From Operating Activities-Deduct from Net Income Cash Flows From Investing Activities Cash Flows From Financing Activities Non-cash
- On an indirect method statement of cash flows, an increase in accounts payable isa. deducted from net income in the operating activities section.b. reported in the financing activities section.c. added to net income in the operating activities section.d. reported in the investing activities section.n Year 1, Expert Electronics, Incorporated (EEI) recognized $6,500 of sales revenue on account and collected $3,900 of cash from accounts receivable. Further, EEI recognized $2,700 of operating expenses on account and paid $1,600 cash as partial settlement of accounts payable.RequiredBased on this information alone:a. Prepare the operating activities section of the statement of cash flows under the direct method. b. Prepare the operating activities section of the statement of cash flows under the indirect method.Using the Exhibit below, assume that the balance of Accounts Payable was $60,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Payable is $65,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts payable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of…
- A company settles a long-term note payable plus interest by paying $68,000 cash toward the principal amount and $5,440 cash for interest. The amount reported as a use of cash under cash flows from financing activities is:BGP Electrical Supply is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance sheet at December 31 $ 39,900 36,800 44,000 $ 31,900 31,800 41,000 103,300 (27,300) Cash Accounts receivable Merchandise inventory 126,100 (34,700 $212,100 $ 40,700 Property and equipment Less: Accumulated depreciation Accounts payable Accrued wages expense Note payable, long-term Common stock and additional paid-in capital Retained earnings $180,700 $ 32,100 4,100 55,100 74,900 14,500 3,700 48,000 94,900 24,800 $212,100 $180,700 Income statement for current year $139,000 89,000 Sales Cost of goods sold Other expenses Net income 39,700 $ 10,300 Additional Data: a. Bought equipment for cash, $22,800. b. Paid $7,100 on the long-term note payable. c. Issued new shares of stock for $20,000 cash. d. No dividends were…Using the Exhibit below, assume that the balance of Accounts Payable was $50,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Payable is $35,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts payable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of…
- A company borrows $10,000 and signs a 2-year nontrade note payable. In preparing a statement of cash flows (indirect method), this event would be reflected as a(n) addition adjustment to net income in the cash flows from operating activities section. cash outflow from investing activities. cash inflow from financing activities. cash inflow from investing activities.Dive In Company was started several years ago by two diving instructors. The company's comparative balance sheets and income statement, as well as additional information, are presented below. Balance Sheet at December 31 Cash Accounts Receivable. Prepaid Rent Total Assets Salaries and Wages Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Rent and Office Expenses Net In Current Year $ 3,340 1,100 110 $ 4,550 $ 400 1,300 2,850 $ 4,550 $ 35,050 31,000 3,700 $ 350 Previous Year Additional Data: a. Rent is paid in advance each month, and Office Expenses are paid in cash as incurred. b. An owner contributed capital by paying $250 cash in exchange for the company's stock. $ 4,145 550 55 $4,750 $ 1,200 1,050 2,500 $4,750
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