A company uses the indirect method to determine its cash flows from operating activities. Use the following information to determine its net cash provided or used by operating activities.Net income...$15,200Depreciation expense...$10,000Cash payment on note payable... $8,000Gain on sale of land...$3,000Increase in inventory...$1,500Increase in accounts payable...$2,850Multiple Choice$23,550 used by operating activities$23,550 provided by operating activities$15,550 provided by operating activities$42,400 provided by operating activities

The given image is very blurred.Kindly upload the image again.It is not readable. My mother is in…

Answered: A company uses the indirect method to…

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

The independent cases listed below include all items relevant to operating activities. Sales revenue Cost of goods sold Depreciation expense Salaries and wages expense Net income (loss) Accounts receivable increase (decrease) Inventory increase (decrease) Accounts payable increase (decrease) Salaries and wages payable increase (decrease) Cash Collected from Customers Cash Payments to Suppliers Cash Payments for Salaries and Wages Net Cash Provided by Operating Activities Case A Case B Case A Required: Compute cash flows from operating activities using the direct method. (Amounts to be deducted should be indicated with a minus sign.) Case C $ 74,000 39,500 10,900 5,900 $ 17,700 $ (1,000) 2,900 e 1,950 Case B $ 64,000 30,500 2,900 13,900 $ 16,700 $ 4,900 0 3,400 (2,900) Case C $ 105,000 70,300 26,900 8,900 $ (1,100) $ 3,900 (3,900) (1,000) 1,000
Oo.25. Subject :- Account
COTB MC Qu. 15-48 (Algo) Assume that a company provided... Assume that a company provided the following statement of cash flows (all sales are on account): Operating activities: Net income Adjustments to convert net income to a cash basis: Depreciation Decrease in accounts receivable Increase in inventory Increase in accounts payable Net cash provided by (used in) operating activities Investing activities: Additions to property, plant, & equipment Net cash provided by (used in) investing activities Financing activities: Issuance of common stock Cash dividends paid Net cash provided by (used in) financing activities Net increase in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents How much is the company's free cash flow? $ 15 2 (10) 4 (40) 5 (16) $ 47 11 58 (40) (11) 7 6 $ 13
Hamburger Heaven's income statement for the current year and selected balance sheet data for the current and prior years ended December 31 are presented below. Income Statement Sales Revenue $1,860 Expenses: Cost of Goods Sold 850 Depreciation Expense Salaries and Wages Expense Rent Expense 150 450 200 Insurance Expense 75 Interest Expense Utilities Expense 45 Net Income 35 Selected Balance Sheet Accounts Current Year Prior Year 72 Inventory Accounts Receivable 55 355 400 Accounts Payable Salaries/Wages Payable Utilities Payable Prepaid Rent Prepaid Insurance 225 260 39 25 25 10 14 TIP: Prepaid Rent decreased because the amount taken out of Prepaid Rent (and subtracted from net income as Rent Expense) was more than the amount paid for rent in cash during the current year. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
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
Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 2,189,000 Cost of goods sold 1,072,610 Gross profit 1,116,390 Operating expenses Salaries expense $ 299,893 Depreciation expense 52,536 Rent expense 59,103 Amortization expenses—Patents 6,567 Utilities expense 24,079 442,178 674,212 Gain on sale of equipment 8,756 Net income $ 682,968 Accounts receivable $ 46,450 increase Accounts payable $ 12,900 decrease Inventory 13,500 increase Salaries payable 5,150 decrease
How do I use the indirect method to complete cash flow statement?
Staley Inc. reported the following data: Net income Depreciation expense Loss on disposal of equipment Increase in accounts receivable Increase in accounts payable 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. $485,300 57,200 30,500 22,400 12,100 Staley Inc. Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS