A company reports net income of $157,000. Included in net income is a gain on the sale of land of $16,000. A comparison of this year'sand last year's balance sheets reveals an increase in accounts receivable of $27,000, an increase in inventory of $16,000, and adecrease in accounts payable of $47,00O.Required:Prepare the operating activities section of the statement of cash flows using the indirect method. (List cash outflows and anydecrease in cash as negative amounts.)Statement of Cash Flows (partial)Cash flows from operating activities:Adjustments to reconcile net income to netcash flows from operating activities:Net cash flows from operating activities2$

The Cash Flow Statement shows the cash inflow and cash outflow of the company during the particular…

Answered: A company reports net income of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Complete the following Spreadsheet for the preparation of statement of cash flows under the indirect method. (The statement of cash flows is not required.) (Enter all amounts as positive values.) Additional information: a. Net income for the year was $105,000. b. Dividends of $90,000 cash were declared and paid. c. The only noncash expense was $75,000 of depreciation. d. Purchased plant assets for $95,000 cash. e. Notes payable of $25,000 were issued for $25,000 cash. f. $55,000 increase in accounts receivable. g. $35,000 decrease in inventory. h. $15,000 decrease in accounts payable. Balance Sheet-Debit Balance Accounts Cash Accounts receivable Inventory Plant assets Balance Sheet-Credit Balance Accounts Accumulated depreciation Accounts payable Notes payable Common stock Retained earnings Statement of Cash Flows Operating activities SCORETECK CORPORATION Spreadsheet for Statement of Cash Flows-Indirect Method For Year Ended December 31, 2021 Investing activities Financing activities…
Accounts receivable from sales transactions were $49,313 at the beginning of the year and $62,098 at the end of the year. Net income reported on the income statement for the year was $122,531. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would be
Using the indirect method, calculate the amount of cash flows from operating activities from the following data: Net Income $199,000 Beginning Accounts receivable 22,000 ending accounts recievable 29,000 Beginning Prepaid insurance 5,000 Ending prepaid insurance 2,000 Beginning Accounts payable 15,000 Ending Accounts payable 14,000 Depreciation expense 50,000 Amortization of intangible asset 6,000 dividends declared and paid 11,000
If a gain of $8,077 is realized in selling (for cash) office equipment having a book value of $59,041, the total amount reported in the investing activities section of the statement of cash flows is?
Dillin Inc. reported the following on the company’s statement of cash flows in 20Y2 and 20Y1: Line Item Description 20Y2 20Y1 Net cash flows from operating activities $435,300 $416,000 Net cash flows used for investing activities (429,000) (380,000) Net cash flows used for financing activities (43,000) (60,000) Of the net cash flows used for investing activities, 70% was used for the purchase of property, plant, and equipment. a. Determine Dillin’s free cash flow for both years. Line Item Description 20Y2 20Y1 Free cash flow fill in the blank 1 of 2$ fill in the blank 2 of 2$
If a gain of $8,081 is realized in selling (for cash) office equipment having a book value of $62,903, the total amount reported in the cash flows from investing activities section of the statement of cash flows is:
) Provide an accurate, full and complete explanation and implication of the information presented in (mathematical forms) by explaining the significance of the cash flow statement The net income reported on the income statement for the current year was $128,000. Depreciation recorded on store equipment for the year amounted to $21,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $51,200 $47,100 Accounts receivable (net) 36,710 34,810 Merchandise inventory 50,120 52,990 Prepaid expenses 5,630 4,470 Accounts payable (merchandise creditors) 47,970 44,560 Wages payable 26,210 29,110
Laser World reports net income of $650,000. Depreciation expense is $50,000, accounts receivable increases $11,000, and accounts payable decreases $30,000. Calculate net cash flows from operating activities using the indirect method.
Accounts receivable from sales transactions were $45,878 at the beginning of the year and $60,085 at the end of the year. Net income reported on the income statement for the year was $139,730. Exclusive of the effect of other adjustments, what is the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method?
Very important please be correct thank you
Using the information below, complete the operating cash flow section of the Statement of Cash Flows for Peter Ltd using direct method. Your presentation must be consistent with the requirements of AASB107. Ignore tax. Reporting date is 30 June. The balances of selected accounts of Peter Ltd at 30 June 2021 and 30 June 2022 were ($000): 2021 2022 Cash 3850 1200 Inventory 3750 4250 Accounts receivable 2800 3500 Allowance for doubtful debts 320 260 Land 5000 5000 Plant 2750 2800 Accumulated depreciation 490 450 Accounts payable 3200 3500 Rent payable 100 130 Salaries payable 120 190 Share capital 1000 1000 Sales (on credit) 7750 6550 Cost of goods sold 1250 1100 Doubtful debts expense 280 300 Rent expense 540 450 Salaries expense 800 750 Depreciation expense 260 180 Required: Peter Ltd’s operating cash flow section extracted from the Statement of Cash Flows for year ended 30 June 2022 (Direct Method)
Electronic Wonders reports net Income of $96,200. The accounting records reveal Depreciation Expense of $50,500 as well as Increases in Prepaid Rent, Accounts Payable, and Income Tax Payable of $39,400, $24,200, and $20,100, respectively. Prepare the operating activities section of Electronic Wonders' statement of cash flows using the Indirect method. (Amounts to be deducted and negative values should be indicated by minus sign.) ELECTRONIC WONDERS Statement of Cash Flowes (partial) Cash Flows from Operating Activities Adjustments for noncash effects: Changes in current assets and current liabilities: Net cash flows from operating activites

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