Adjusting Net Income for Changes in Current Assets and Current Liabilities Dietrich Corp. reported net income of $25,000 for 20-2. The December 31 balances of the current assets and current liabilities are shown below. 20-2 20-1 Accounts Receivable $4,700 $3,000 Merchandise Inventory 25,000 30,000 Accounts Payable 16,000 18,000 Wages Payable 8,300 12,000 Compute cash provided by operating activities.

Adjusting Net Income for Changes in Current Assets and Current Liabilities Dietrich Corp. reported net income of $25,000 for 20-2. The December 31 balances of the current assets and current liabilities are shown below. 20-2 20-1 Accounts Receivable $4,700 $3,000 Merchandise Inventory 25,000 30,000 Accounts Payable 16,000 18,000 Wages Payable 8,300 12,000 Compute cash provided by operating activities.

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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Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $137,500. Depreciation recorded on store equipment for the year amounted to $22,700. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Endof Year Beginningof Year Cash $53,350 $48,550 Accounts receivable (net) 38,250 35,880 Merchandise inventory 52,230 54,620 Prepaid expenses 5,870 4,610 Accounts payable (merchandise creditors) 49,990 45,930 Wages payable 27,320 30,000 a. 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.
Rogers Company reported net income of $47,097 for the year. During the year, accounts receivable increased by $5,480, accounts payable decreased by $4,933 and depreciation expense of $76,852 was recorded. Net cash flows from operating activities for the year is a. $124,496 b. $113,536 c. $47,097 d. $134,362
Determining Operating Cash Flows-Direct Method Adjusted trial balances for Garboz Company, an industrial recycler, at December 31 of the current and prior year follow. Debits, December 31 Current Year Prior Year Cash $14,000 $12,800 Accounts receivable 13,200 12,000 Inventory 12,400 18,800 Property, plant, and equipment 40,000 38,000 Discount on bonds payable 1,800 2,000 Cost of goods sold 100,000 152,000 Selling expenses 56,600 68,800 General and administrative expenses 54,800 60,520 Interest expense 1,720 1,040 Income tax expense 8,160 24,480 Total debits $302,680 $390,440 Credits, December 31 Current Year Prior Year Allowance for doubtful accounts $ 520 $ 440 Accumulated depreciation 6,600 6,000 Trade accounts payable 10,000 7,000 Income taxes payable 8,400 10,840 Deferred income tax liability 2,120 1,840 Callable bonds payable, 8% 18,000 8,000 Common stock 20,000 16,000 Additional paid-in capital 3,640 3,000 Retained earnings 17,880 25,840 Sales Total credits 215,520 311,480…
Pronghorn Inc. Cash Flow Statement For the Year Ended on 31 December 2020 Cash Flow from Operating Activities: Net Income $47,200 Adjustments to reconcile net income to net cash flows from (used for) operating activities: Add: Depreciation 9200 Changes in current operating assets and liabilities: Add: Increase in Accounts Payable 6480 Less: Increase in Accounts Receivable (4480) Net Cash Provided by Operating Activities (A) $58,400 Cash Flow from Investing Activities: Purchase of Equipment $(18,480) Net Cash Used by Investing Activities (B) $(18,480) Cash Flow from Financing Activities: Payment of Dividends $(27,680 ) Proceeds from Issuance of Common Stock 19,760 Net Cash Used by Financing Activities (C) $(7,920) Net Increase/Decrease in Cash (A+B+C) $32,000 Add Cash Balance on 1/1/2020 14480 Cash Balance on 31/12/2020 $46,480 I dont have the right spacing for this layout. what I have looks like this: Cash Flows…
Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: Line Item Description Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $13,400 $12,800 Inventory 57,300 58,000 Accounts payable 13,600 11,800 Dividends payable 29,000 27,000 Adjust net income of $123,400 for changes in operating assets and liabilities to arrive at net cash flows from operating activities.fill in the blank 1 of 1$
Changes in Current Operating Assets and Liabilities Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $21,800 $27,300 Inventory 77,000 67,500 Accounts payable 29,600 24,900 Dividends payable 22,000 21,000 Adjust net income of $93,800 for changes in operating assets and liabilities to arrive at net cash flows from operating activities.
Statement of Cash Flows The comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Dec. 31, Dec. 31, 20Y8 20Y7 Cash Accounts receivable (net) Merchandise inventory Assets Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par Excess of paid-in capital over par Retained earnings Total liabilities and stockholders' equity $53,650 $66,100 82,440 89,100 117,780 110,440 4,800 3,350 239,920 197,870 (62,380) (48,530) $436,210 $418,330 $91,600 0 14,000 203,000 127,610 $436,210 $87,430 125,500 9,000 118,000 78,400 $418,330 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $125,980. b. Depreciation reported on the income statement, $30,270. c. Equipment was purchased at a cost of $58,470, and fully depreciated…
Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-terel Common Stock Retained Earnings Total Liabilities and Stockholders' F Equity Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 21 Cash Flows from Operating Activities Cash Collected from Customers Clash Paid for Income Tax Cash Paid for Salaries and Wages to Employees Cash Paid for Other Operating Expenses Activities Net Cash Provided by Operating Additional Data: a Bought new hockey equipment for cash, $470 b Borrowed $1000 cash from the bank during the year c Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash Required: 1.…
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $154,100. Depreciation recorded on store equipment for the year amounted to $25,400. 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 $58,560 $53,290 Accounts receivable (net) 41,990 39,380 Inventories 57,330 59,950 Prepaid expenses 6,440 5,060 Accounts payable (merchandise creditors) 54,870 50,410 Wages payable 29,980 32,930 a. 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. Statement of Cash Flows (partial) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow…
9. What is the amount of depreciation under cash basis?
Changes in Current Operating Assets and Liabilities Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $20,300 $25,000 Inventory 85,100 76,000 Accounts payable 18,100 22,100 Dividends payable 24,000 23,000 Adjust net income of $104,000 for changes in operating assets and liabilities to arrive at net cash flows from operating activities.
Days' cash on hand Financial statement data for years ending December 31 for Newton Company follow: 20Y9 20Y8 Cash (end of year) $25,500 $24,250 Short-term investments (end of year) 8,270 9,460 Operating expenses 60,135 63,780 Depreciation expense 13,225 11,400 Determine the days’ cash on hand for 20Y8 and 20Y9. Assume 365 days in a year. Round all calculations to one decimal place. Days’ Cash on Hand 20Y8: fill in the blank 1 66 days 20Y9: fill in the blank 2 days