Accounts payable pertain to operating expenses.Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flowwith either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).)SHERIDAN COMPANYPartial Statement of Cash FlowsAdjustments to reconcile net income to$$

Net Income: This is the company's net profit or loss for the period, which is obtained from the…

Answered: Accounts payable pertain to operating…

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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Presented below is the income statement of Cowan, Inc.: Sales revenue Cost of goods sold Gross profit Operating expenses Income before income taxes Income taxes Net income Cash $380,000 Accounts receivable 225,000 155,000 95,000 60,000 24,000 In addition, the following information related to net changes in working capital is presented: $36,000 Inventories Salaries payable (operating expenses) Accounts payable Income taxes payable Debit $12,000 25.000 8,000 3,000 Credit $19,400 14,000 The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $2,600.
Oriole Ltd. reported the following for the fiscal year 2021: ORIOLE LTD. Income Statement Year Ended September 30, 2021 Sales $575,000 Cost of goods sold 330,000 Gross profit 245,000 Operating expenses $ 101.000 Depreciation expense 26,000 Gain on sale of land (36,000 ) 91,000 Profit before income tax 154,000 Income tax expense 38,500 Profit $115,500 Additional information: 1 Accounts recelvable decreased by $15,500 during the year. 2 Inventory increased by $7.000 during the year. 3. Prepaid oxpenses decreased by $5.000 during the year. 4. Accounts payable to suppliers increased by $10,500 during the year. 5. Accrued expenses payable increased by $4,500 during the year. 6. Income tax payable decreased by $6,300 during the year.
The accounting records of Hampton Company provided the data below ($ in thousands). Net income Depreciation expense Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in salaries payable Increase in interest payable $33,300 9,400 5,600 7,100 2,000 4,300 1,400 Required: Prepare a reconciliation of net income to net cash flows from operating activities.
The following information is available from the current period financial statements: $ 116,406 25,140 25,519 23,537 Net income Depreciation expense Increase in accounts receivable Decrease in accounts payable The net cash flow from operating activities using the indirect method is Oa. $190,602 Ob. $92,490 Oc. $116,406 Od. $93,248
Prepare a cash flow statement (indirect method) from the given information. please include explanation for each step/line item
Statement of Cash Flows The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, Dec. 31, 20Y9 20Y8 Cash Accounts receivable (net) Inventories Investments Land Assets Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Dividends payable Common stock, $10 par Excess of paid-in capital over par Retained earnings Total liabilities and stockholders' equity $273,400 99,040 279,590 0 143,400 308,470 (72,220) $1,031,680 $186,730 18,570 10,320 55,710 209,430 550,920 $1,031,680 $256,370 92,080 272,620 105,620 0 241,030 (65,000) $902,720 $177,840 23,470 8,120 44,230 122,770 526,290 $902,720 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for $95,060 cash. d. The common stock was…
The following information is available from the current period financial statements: Net income $137,243 Depreciation expense 25,529 Increase in accounts receivable 15,102 Decrease in accounts payable 21,567 The net cash flow from operating activities using the indirect method is a. $199,441 b.$75,045 c.$137,243 d.$126,103
When using the indirect method of preparing a statement of cash flows, how will a $23,500 increase in accounts payable affect net income in the operating activities section of the statement of cash flows and why? a. There will be no effect, as this is a non-cash transaction/entry b. Increases in current liabilities are added to net income, so it will increase net cash by $23,500 C. Increases in current liabilities are deducted from net income, so it will decrease net cash by $23,500 d. There is no effect, as accounts receivable are on the balance sheet, not the income statement
Determining Cash Flows from (Used for) Operating Activities Yeoman Inc. reported the following data: Net income $384,200 Depreciation expense 71,300 Loss on disposal of equipment 26,300 Increase in accounts receivable 13,900 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: $- Select - Adjustments to reconcile net income to net cash flows from (used for) operating activities: - Select - - Select - Changes in current operating assets and liabilities: - Select - - Select - Net cash flows from operating activities $fill in the blank 11
125. accountig
The following information is available from the current period financial statements: Net income $ 141,238 Depreciation expense $36,864 Increase in accounts receivable $15,924 Decrease in accounts payable $23,055 The net cash flow from operating activities using the indirect method is a.$217,081 b.$139,123 c.$111,505 d.$88,450
Deduce the missing amounts and prepare the income statement.

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