Arundel Company disclosed the following information for its recent calendar year. Prepare the operatingactivities section of the statement of cash flows using the indirect method.Income Statement DataSelected Year-End Balance Sheet DataRevenues..$100,000Accounts receivable decrease......$24,000Expenses: Salaries expense .Utilities expenseDepreciation expense.Other expenses84,000Purchased a machine for cash .10,00014,000Salaries payable increase..18,00014,600Other accrued liabilities decrease8,0003,400$ (16,000)Net loss

Operating activities: Business exists due to its operating activities because income is generated…

Answered: Arundel Company disclosed the following…

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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Using the indirect method, calculate the amount of cash flows from operating activities from the following data: Net Income $199,000 Beginning Accounts receivable 22,000 ending accounts recievable 29,000 Beginning Prepaid insurance 5,000 Ending prepaid insurance 2,000 Beginning Accounts payable 15,000 Ending Accounts payable 14,000 Depreciation expense 50,000 Amortization of intangible asset 6,000 dividends declared and paid 11,000
The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in thousands) for Peach Computers. PEACH COMPUTERSIncome StatementFor the Year Ended December 31, 2021 Sales $ 380.0 Cost of goods sold (190.0 ) Gross margin 190.0 Salaries expense $ 43.0 Insurance expense 20.0 Depreciation expense 9.0 Loss on sale of land 7.0 79.0 Income before tax 111.0 Income tax expense (55.5 ) Net income $ 55.5 Reconciliation of Net IncomeTo Net Cash Flows from Operating Activities Net income $ 55.5 Adjustments for Noncash Effects Depreciation expense 9.0 Loss on sale of land 7.0 Changes in operating assets and liabilities: Decrease in accounts receivable 11.0 Increase in inventory (38.0 ) Decrease in accounts payable (23.0 ) Increase in salaries payable…
Shim Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Shim's Year 2 and Year 1 year-end balance sheets. Account Title Year 2 Year 1 $31,297 1,496 249 Accounts receivable $37,556 Prepaid rent 1,309 Interest receivable Accounts payable Salaries payable 199 10,537 2,930 3,215 12,644 3,348 Unearned revenue 4,287 The income statement reported a $1,170 gain on the sale of equipment, an $750 loss on the sale of land, and $3,700 of depreciation expense. Net income for the period was $53,353. Required Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities: Plus: Less: Net cash flow from operating activities
Fitz Company reports the following information. Selected Annual Income Statement Data Net income Depreciation expense Amortization expense Gain on sale of plant assets Cash flows from operating activities Selected Year-End Balance Sheet Data $ 373,000 Accounts receivable decrease 49,400 Inventory decrease 8,300 Prepaid expenses increase 6,700 Accounts payable decrease Salaries payable increase 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) Changes in current operating assets and liabilities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 60,400 42,500 6,400 8,800 1,700 $
1.2 Hampton Company reports the following information for its recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data Sales $ 77,000 Accounts receivable increase $ 7,000 Expenses: Inventory decrease 3,000 Cost of goods sold 41,000 Salaries payable increase 800 Salaries expense 10,000 Depreciation expense 8,000 Net income $ 18,000 Required:Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
Using the Exhibit below, assume that the balance of Accounts Payable was $60,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Payable is $65,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts payable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of…
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
Chew Corporation prepares its statement of cash flows using the indirect method of reporting operating activities. Net income for the 2018 fiscal year was $1,250,000. Depreciation expense of $140,000 was included withoperating expenses in the income statement. The following information describes the changes in current assets andliabilities other than cash:Increase in accounts receivable $152,000Decrease in inventories 108,000Decrease prepaid expenses 62,000Decrease in salaries payable 30,000Increase in income taxes payable 44,000Required:Calculate cash flows from operating activities for 2018.
The item listed below belongs on the Statement of Cash Flows. Using formulas and cell links, complete the Statement of Cash Flows. Items for the Statement of Cash Flowws 01/01/21 12/31/21 Increase (Decrease) Davidson Company Statment of Cash Flow For the Year Ended Dec, 31,2021 Cash 42,000 60,000 Accounts Recevable 254,000 314,200 Cash Flows from operation activities Inventory 78,500 117,100 Accounts Payable 164,200 204,800 Net Cash Provided used by operating Activities Short-term notes Payable 65,000 27,200 Cash Flows from investing Activities Net income for 2021 230,200 Purchase of Equipment 84,000 Net Cash Provided used by investing Activities Depreciation Expense 26,600 Payments of Cash Dividends 91,600 Cash Flows from Financing…
A company reports net income of $152,000. Included in net income is a gain on the sale of land of $13,500. A comparison of this year’s and last year’s balance sheets reveals an increase in accounts receivable of $22,000, an increase in inventory of $13,500, and a decrease in accounts payable of $42,000.Required:Prepare the operating activities section of the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
Staley Inc. reported the following data: Net income $226,300 Depreciation expense 72,400 Loss on disposal of equipment 36,700 Increase in accounts receivable 28,700 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. blankStaley Inc.Statement of Cash Flows (partial) Cash flows from operating activities: $- Select - Adjustments to reconcile net income to net cash flow from operating activities: - Select - - Select - Changes in current operating assets and liabilities: - Select - - Select - Net cash flow from operating activities $fill in the blank 11
Fitz Company reports the following information. Selected Annual Income Statement Data Net income Depreciation expense Amortization expense Gain on sale of plant assets Cash flows from operating activities Selected Year-End Balance Sheet Data $ 379,000 Accounts receivable decrease 45,200 Inventory decrease 7,600 Prepaid expenses increase 7,600 Accounts payable decrease Salaries payable increase Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Changes in current operating assets and liabilities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 120,400 51,000 4,800 8,600 2,300 0

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