Bramble Company reported net income of $182.200 for the current year. Depreciation recorded on buildings and equipment amounted to $82.200 for the year. 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 $22,200 $19.400 Accounts receivable 26,200 36,400 Inventories 52,200 69,400 Prepaid expenses 13,900 7,200 Accounts payable 14,200 22,400 Income taxes payable 6.000 3,400 Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - signes-15,000 or in parenthesis eg (15,000))

Bramble Company reported net income of $182.200 for the current year. Depreciation recorded on buildings and equipment amounted to $82.200 for the year. 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 $22,200 $19.400 Accounts receivable 26,200 36,400 Inventories 52,200 69,400 Prepaid expenses 13,900 7,200 Accounts payable 14,200 22,400 Income taxes payable 6.000 3,400 Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - signes-15,000 or in parenthesis eg (15,000))

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

Selected accounts from Han Corporation’s trial balance are as follows. Han Corporation Trial Balance December 31 (Selected Accounts) Debit Credit Cash $160,000 Short-Term Marketable Securities 145,000 Accounts Receivable 25,000 Inventories 90,000 Other Current Assets 20,000 Land 330,000 Buildings 300,000 Accumulated Depreciation-Buildings $40,000 Equipment 144,000 Accumulated Depreciation-Equipment 15,000 Goodwill 40,000 Other Intangible Assets 20,000 Prepare the detailed schedule showing the Property, Plant, and Equipment. Property, Plant, and Equipment, Net $fill in the blank 2 fill in the blank 4 fill in the blank 6 Gross Property, Plant, and Equipment $fill in the blank 7 fill in the blank 9 Total Property, Plant, and Equipment, Net $fill in the blank 10
The income statement disclosed the following items for the year: Depreciation expense $57,000 Gain on disposal of equipment 24,000 Net income 542,000 The changes in the current asset and liability accounts for the year are as follows: Increase(Decrease) Accounts receivable $9,800 Inventory (5,550) Prepaid insurance (1,000) Accounts payable (3,700) Income taxes payable 1,440 Dividends payable 2,200 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.
Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) $ 344,000 212,000 During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $ 3,550 41,000 The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $26,000 estimated residual value. The annual accounting period ends on December 31. Required: - Indicate the effects (accounts, amounts, and + for increase and – for decrease) of the following two items on the accounting equation, using the headings shown below. (Enter any decreases to Assets, Liabilities or Stockholder's Equity with a minus sign.) 1. The adjustment for depreciation made last year at the end of 2020. 2. The two expenditures…
Durrand Corporation's accumulated depreciation increased by $13,827, while patents decreased by $2,267 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $4,191 from sale of land. The company earned a net income of $41,464. Assuming there were no changes in noncash current assets and liabilities, determine the net cash flows from operating activities under the indirect method. $fill in the blank 1
Durrand Corporation's accumulated depreciation increased by $13,421, while patents decreased by $2,088 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $3,367 from sale of land. The company earned a net income of $53,251. Assuming there were no changes in noncash current assets and liabilities, determine the net cash flows from operating activities under the indirect method. $fill in the blank 1
Selected accounts from Han Corporation's trial balance are as follows. Han Corporation Trial Balance December 31 (Selected Accounts) Debit Credit Cash $180,000 Short-Term Marketable Securities 140,000 Accounts Receivable 27,000 Inventories 90,000 Other Current Assets 20,000 Land 320,000 Buildings 300,000 Accumulated Depreciation-Buildings $40,000 Equipment 143,000 Accumulated Depreciation-Equipment 10,000 Goodwill 40,000 Other Intangible Assets 20,000 Prepare the detailed schedule showing the Property, Plant, and Equipment. Property, Plant, and Equipment, Net Gross Property, Plant, and Equipment Total Property, Plant, and Equipment, Net
An analysis of changes in selected balance sheet accounts of Johnson Corporation shows the following for the current year: Plant and Equipment accounts: Debit entries to asset accounts Credit entries to asset accounts Debit entries to accumulated depreciation accounts (resulting from sale of plant assets) Credit entries to accumulated depreciation accounts (representing depreciation for the current year) $ 154,000 $ 115,000 $ 88,000 Johnson's income statement for the current year includes a $11,000 loss on disposal of plant assets. All payments and proceeds relating to purchase or sale of plant assets were in cash. Select one: $ 104,000 Total cash proceeds received by Johnson from sales of plant assets during the current year amounted to: a. $104,000. b. $208,000. c. $219,000. d. $16,000.
During the current year, Fortini Company disposed of three different assets. The company's accounts reflected the following on January 1 of the current years, prior to the disposal of the assets: Accumulated Depreciation (straight line) $15,750 (7 years) Original Residual Asset Machine A Machine B Machine C Cost $21,000 50,000 Value $3,000 4,000 75,000 3,000 Estimated Life 8 years 10 years 12 years 36,800 (8 years) 60,000 (10 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 1 of the current year for $5,000 cash. b. Machine B. Sold on April 1 for $10,500; received cash, $2,500, and a note receivable for $8,000, due on March 31 of the following year, plus 6 percent interest. c. Machine C: Suffered irreparable damage from an accident on July 2. On July 10, a salvage company removed the machine at no cost. The machine was insured, and $18,000 cash was collected from the insurance company. Required: 1. Prepare all journal entries related to the…
Samuel Company’s accumulated depreciation—equipment account increased by $6,000, while patents decreased by $2,200 between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a loss of $3,200 from the sale of investments. Assume no changes in noncash current assets and liabilities. Samuel Company reported a net income of $92,000. Determine the net cash flows from (used for) operating activities, using the indirect method. $fill in the blank 1
Durrand Corporation's accumulated depreciation increased by $14,848, while patents decreased by $3,349 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $3,791 from sale of land. The company earned a net income of $59,832. Assuming there were no changes in noncash current assets and liabilities, determine the net cash flows from operating activities under the indirect method. $
The draft financial statements of Enjoy Ltd for the year ended 31 December 20X6 are given below. The following additional information is also provided: (i) Plant with an original cost of $800 and accumulated depreciation of $600 was sold for $200. (ii) Interest expense was $350 of which $140 was paid during the period. $130 relating to interest expense of the prior period was also paid during the period. (iii) Investment income included $250 of interest that was received during the period and $250 of interest still to be received. The $250 of interest still to be received is included within other receivables. (iv) Investment income also included $300 of dividend that was received. Statement of Profit and Loss for the year ended 31 December 20X6: Sales 44,870 Cost of sales 31,000 Gross Profit…
Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment $ 3,350 39,000 Major overhaul of the equipment that improved efficiency $ 331,000 229,500 The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $25,000 estimated residual value. The annual accounting period ends on December 31. Required: Indicate the effects (accounts, amounts, and + for increase and - for decrease) of the following two items on the accounting equation, using the headings shown below. (Enter any decreases to Assets, Liabilities or Stockholder's Equity with a minus sign.) 1. The adjustment for depreciation made last year at the end of 2020. 2. The two expenditures for…