Cash Flow from Operating Activities (Indirect Method) The Arcadia Company owns no plant assets and had the following income statement for the year: Sales revenue $950,000 Cost of goods sold $670,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 15,000 937,000 Net income $13,000 Additional information about the company includes: End of Beginning Year of Year Accounts receivable $64,000 $59,000 Inventory 60,000 86,000 Prepaid rent 8,000 7,000 Accounts payable 22,000 28,000 Wages payable 9,000 6,000 Use the preceding information to calculate the cash flow from operating activities using the indirect method. Ś

Cash Flow from Operating Activities (Indirect Method) The Arcadia Company owns no plant assets and had the following income statement for the year: Sales revenue $950,000 Cost of goods sold $670,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 15,000 937,000 Net income $13,000 Additional information about the company includes: End of Beginning Year of Year Accounts receivable $64,000 $59,000 Inventory 60,000 86,000 Prepaid rent 8,000 7,000 Accounts payable 22,000 28,000 Wages payable 9,000 6,000 Use the preceding information to calculate the cash flow from operating activities using the indirect method. Ś

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

In its income statement for the year ended December 31, 2022, Wildhorse Co. reported the following condensed data. Operating expenses $ 726,000 Interest revenue $ 39,000 Cost of goods sold 1,262,000 Loss on disposal of plant assets 23,000 Interest expense 75,000 Net sales 2,205,000 Income tax expense 51,000 Other comprehensive income (net of $1,200 tax) 8,900 I have to find a Income statement as well as a Comprehensive income, statement is needed, and I am confused.
The balance sheets of Xenon Company reports total assets of $888,000 and $949,000 at the beginning and end of the year, respectively. Sales revenues are $1.8 million, net income is $194,000, and net cash flows from operating activities are $162,000. Required: Calculate the cash return on assets, cash flow to sales, and asset turnover. (Do not round intermediate calculations. Round your final answers to 1 decimal place.) Cash return on assets Cash flow to sales Asset turnover % % times
The Azuza Company owns no plant assets and had the following income statement for the year: Sales revenue $930,000 Cost of goods sold $650,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 12,000 914,000 Net income $16,000 Additional information about the company includes: End ofYear Beginning ofYear Accounts receivable $67,000 $59,000 Inventory 62,000 86,000 Prepaid rent 9,000 7,000 Accounts payable 22,000 30,000 Wages payable 9,000 7,000 Use the preceding information to calculate the cash flow from operating activities using the indirect method. Remember to use negative signs with answers when appropriate.
Cash Flow from Operating Activities (Indirect Method)The Lincoln Company owns no plant assets and had the following income statement for the year: Sales revenue $1,050,000 Cost of goods sold $658,000 Wages expense 154,000 Rent expense 58,800 Insurance expense 21,000 891,800 Net income $158,200 Additional information about the company includes: End of Year Beginning of Year Accounts receivable $75,600 $68,600 Inventory 84,000 92,400 Prepaid insurance 11,200 9,800 Accounts payable 30,800 25,200 Wages payable 12,600 15,400 Use the preceding information to calculate the cash flow from operating activities using the indirect method. Use negative signs with cash outflow answers. Cash Flow from Operating Activities Net Income Answer Add (deduct) items to convert net income to cash basis Accounts Receivable AnswerIncreaseDecrease Answer Inventory AnswerIncreaseDecrease Answer Prepaid Insurance…
Missing Data; Statement of Cash Flows Yoric Company listed the net changes in its balance sheet accounts for the past year as follows: The following additional information is available about last year’s activities: a. Net income for the year was $ ? b. The company sold equipment during the year for $15,000. The equipment originally cost $50,000 and it had $37,000 in accumulated depreciation at the time of sale. c. Cash dividends of $20,000 were declared and paid during the year. d. The beginning and ending balances in the Plant and Equipment and Accumulated Depreciation accounts are given below: e. The balance in the Cash account at the beginning of the year was $23,000; the balance at the end of the year was $ ? f. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change. Required: Using the indirect method, prepare a statement of cash flows for the year.
Assume a company had net income of $79,000 that included a gain on the sale of equipment of $4,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: Accounts receivable $ 40,000 $ 46,000 Inventory $ 53,000 $ 50,000 Prepaid expenses $ 13,000 $ 11,000 Current liabilities: Accounts payable $ 38,000 $ 44,000 Accrued liabilities $ 18,000 $ 15,000 Income taxes payable $ 13,000 $ 10,000 If the credits to the company’s accumulated depreciation account were $21,000, then based solely on the information provided, the company’s net cash provided by (used in) operating activities would be: Multiple Choice $63,000. $55,000. $105,000. $97,000.
Inc. reported the following data for last year: Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 126,000 $ 131,000 Accounts receivable 332,000 488,000 Inventory 576,000 476,000 Plant and equipment, net 896,000 875,000 Investment in Tesla Inc. 396,000 427,000 Land (undeveloped) 253,000 246,000 Total assets $ 2,579,000 $ 2,643,000 Liabilities and Stockholders' Equity Accounts payable Long-term debt $ 380,000 1,013,000 1,186,000 $ 340,000 1,013,000 1,290,000 Stockholders' equity Total liabilities and stockholders' equity $ 2,579,000 $ 2,643,000 Inc. Income Statement Sales $ 5,265,000 4,317,300 947,700 Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 123,000 210,000 333,000 $ 614,700 Inc. paid dividends of $510,700 last year. The "Investment in Tesla Inc." item on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return is 15%. What was the company's…
The Net Profit of LSLS Corporation for the year is $ 2,515,250. Using the following information in the table and find out the Net Cash Flows from Operating Activities by Indirect Method SI. No : Particulars Amount ($) 1 Depreciation Expense 25,565.00 Decrease in Current Liabilities 57,677.00 3 Increase in Prepaid Insurance 67,076.00 4 Loss on Sale of Machinery 322,387.00 Gain on sale of Non Current Asset 377,553.00 6 Increase in Salaries Payable 64,704.00 7 Provision for Taxation 123,321.00 $ 2,584,921 O $ 2,548,921 O $ 2,544,921 O $ 2,458,921
Staley Inc. reported the following data: Net income: $465,400 Depreciation expense: $68,100 Loss on disposal of equipment: $29,900 Increase in accounts receivable: $21,700 Increase in accounts payable: $12,700 Compute cash flow from operating activities
Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $ 277,000 $ 136,386 Accounts receivable 179,000 205,000 Inventory 257,000 270,000 Plant and equipment (net) 476,000 440,000 Investment in Cedar Company 255,000 288,000 Land (undeveloped) 335,000 335,000 Total assets $ 1,779,000 $ 1,674,386 Liabilities and owners' equity: Accounts payable $ 203,000 $ 152,000 Long-term debt 862,000 862,000 Owners' equity 714,000 660,386 Total liabilities and owners' equity $ 1,779,000 $ 1,674,386 Beaker Company Income Statement Sales $ 1,960,000 Less operating expenses 1,597,400 Net operating income 362,600 Less interest and taxes: Interest expense $ 105,800 Tax expense 141,414 247,214 Net income $ 115,386 The company paid dividends of $169,000 last year. The "Investment in Cedar Company" on the statement of…
Exercise 12-5 (Algo) Indirect: Cash flows from operating activities LO P2 Fitz Company reports the following information. Selected Annual Income Statement Data Selected Year-End Balance Sheet Data $ 412,000 Accounts receivable decrease 49,600 Inventory decrease 8,800 Prepaid expenses increase 6,600 Accounts payable decrease Salaries payable increase Net income $ 81,100 Depreciation expense Amortization expense Gain on sale of plant assets 44, 000 5,600 9,000 1,300 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) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $
Alfredo Incorporated reports net income of $233,000 for the year ended December 31. It also reports $89,000 depreciation expense and a $5,150 gain on the sale of equipment. Its comparative balance sheet reveals a $36,100 decrease in accounts receivable, a $16,050 increase in accounts payable, and a $12,700 decrease in wages payable. Calculate the cash provided (used) in operating activities using the indirect method.