Accounting information from the records of the Sarah Jane's Clothing Corporation at the end of 2020 is shown below: Net income $100,000 Proceeds from sale of long-term investment in marketable securities 20,000 Proceeds from sale of building 80,000 Gain on sale of building 35,000 Increase in accounts receivable 5,000 Increase in accounts payable 7,000 Cash dividends declared 5,000 Depreciation expense 18,000 Patent amortization expense 1,000 Amortization of premium on bonds payable 1,500 Purchase of equipment 30,000 Issue of common stock 25,000 Increase in accrued liabilities 4,000 Decrease in prepaid expenses 2,000 Required: Prepare Sarah Jane's Clothing 's 2020 Net Cash Flow from Operating Activities section of a statement of cash flows, using the indirect method. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Sarah Jane's Clothing Corporation Statement of Cash Flows (Partial) For Year Ended December 31, 2020 Operating Activities: Net income $fill in the blank 2 Adjustment for noncash income items: Depreciation expense fill in the blank 4 Decrease in prepaid expenses fill in the blank 6 Patent amortization expense fill in the blank 8 Amortization of premium on bonds payable fill in the blank 10 Adjustments for cash flow effects from working capital items: Increase in accrued liabilities fill in the blank 12 Increase in accounts payable fill in the blank 14 Decrease in prepaid expenses fill in the blank 16 Increase in accounts receivable fill in the blank 18 Net cash used for operating activities $fill in the blank 20

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Accounting information from the records of the Sarah Jane's Clothing Corporation at the end of 2020 is shown below:

Net income	$100,000
Proceeds from sale of long-term investment in marketable securities	20,000
Proceeds from sale of building	80,000
Gain on sale of building	35,000
Increase in accounts receivable	5,000
Increase in accounts payable	7,000
Cash dividends declared	5,000
Depreciation expense	18,000
Patent amortization expense	1,000
Amortization of premium on bonds payable	1,500
Purchase of equipment	30,000
Issue of common stock	25,000
Increase in accrued liabilities	4,000
Decrease in prepaid expenses	2,000

Required:

Prepare Sarah Jane's Clothing 's 2020 Net Cash Flow from Operating Activities section of a statement of cash flows, using the indirect method. For those boxes in which you must enter subtractive or negative numbers use a minus sign.

Sarah Jane's Clothing Corporation
Statement of Cash Flows (Partial)
For Year Ended December 31, 2020
Operating Activities:
Net income	$fill in the blank 2
Adjustment for noncash income items:
Depreciation expense	fill in the blank 4
Decrease in prepaid expenses	fill in the blank 6
Patent amortization expense	fill in the blank 8
Amortization of premium on bonds payable	fill in the blank 10
Adjustments for cash flow effects from working capital items:
Increase in accrued liabilities	fill in the blank 12
Increase in accounts payable	fill in the blank 14
Decrease in prepaid expenses	fill in the blank 16
Increase in accounts receivable	fill in the blank 18
Net cash used for operating activities	$fill in the blank 20

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions