Cash flow from operating activities accounting using the indirect mathod A company reports the following information for the year:. Net income: $120,000⚫ Depreciation expense: $15,000. Increase in accounts receivable: $8,000⚫ Decrease in accounts payable: $5,000⚫ Purchase of equipment: $25,000What is the company's cash flow from operating activities usingthe indirect method?

Step 1: Definition of Cash Flow from Operating Activities (Indirect Method)Cash flow from operating…

Answered: A company reports the following…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 19E

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In the current year, Harrisburg Corporation had net income of 35,000, a 9,000 decrease in accounts receivable, a 7,000 increase in inventory, an 8,000 increase in salaries payable, a 13,000 decrease in accounts payable, and 10,000 in depreciation expense. Using the indirect method, prepare the operating activities section of its statement of cash flows based on this information.
Which item is added to net income when computing cash flows from operating activities? a. Gain on the disposal of property, plant, and equipment b. Increase in wages payable c. Increase in inventory d. Increase in prepaid rent Use the following information for Multiple-Choice Questions 11-9 and 11-10: Cornett Company reported the following information: cash received from the issuance of common stock, $150,000; cash received from the sale of equipment, $14,800; cash paid to purchase an investment, $20,000; cash paid to retire a note payable, $50,000; and cash collected from sales to customers, $225,000.
The following information is available from the current period financial statements: Net income $112,044 Depreciation expense 22,976 Increase in accounts receivable 14,959 Decrease in accounts payable 16,749 The net cash flow from operating activities using the indirect method is:
Yeoman Inc. reported thne following data: Net income $307,200 Depreciation expense 65,100 Loss on disposal of equipment 33,400 Increase in accounts receivable 15,000 Increase in accounts payable 10,700 Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Yeoman Inc. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation expense Loss on disposal of equipment Changes in current operating assets and liabilities: Increase in accounts receivable v Increase in accounts payable Net cash flows from operating activities Check My Work Previous
What is the statement of cash flows using the indirect method?
Fitz Company reports the following information. Use the indirect method to prepare the operating activi- ties section of its statement of cash flows for the year ended December 31. Selected Annual Income Statement Data Net income .. Depreciation expense Amortization expense.. Gain on sale of plant assets. Selected Year-End Balance Sheet Data $374,000 44,000 Accounts receivable decrease.. $17,100 Inventory decrease..... Prepaid expenses increase.. Accounts payable decrease Salaries payable increase.. 42,000 7,200 4,700 6,000 8,200 1,200
The cash flows from (used for) operating activities are reported by the direct method on the statement of cash flows. Determine the following: a. If sales for the current year were $558,800 and accounts receivable decreased by $39,700 during the year, what was the amount of cash received from customers?$fill in the blank 1 b. If income tax expense for the current year was $38,900 and income tax payable decreased by $4,500 during the year, what was the amount of cash paid for income taxes?$fill in the blank 2 c. Briefly explain why the cash received from customers in part (a) is different from sales.Because the customers paid than the amount of sales for the period, cash received from customers sales made on account by $39,700 during the current year.
Staley Inc. reported the following data: Net income $338,400 Depreciation expense 66,700 Loss on disposal of equipment 31,900 Increase in accounts receivable 25,200 Increase in accounts payable 10,100 Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. what is the answer to this?
What is the free cash flow?
Staley Inc. reported the following data: Net income $459,700 Depreciation expense 58,100 Loss on disposal of equipment 28,300 Increase in accounts receivable 12,100 Increase in accounts payable 10,300 Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
Fitz Company reports the following information. Selected Annual Income Statement Data Net income Depreciation expense Amortization expense Gain on sale of plant assets Selected Year-End Balance Sheet Data $ 421,000 Accounts receivable decrease 48,600 Inventory decrease 7,300 Prepaid expenses increase 7,900 Accounts payable decrease Salaries payable increase $ 133,100 44,500 7,000 10,300 1,800 Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities
Use the appropriate information from the data provided below to calculate the net cash provided (used) by operating activities for the period. Net income Accounts receivable increase (for the period) Inventory decrease (for the period) Proceeds from the issuance of long-term debt Accounts payable decrease (for the period) Purchases of equipment Depreciation and amortization expense $ 113,000 24,000 19,000 260,000 11,000 175,000 42,000

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