Cash Flows from Operating Activities-Indirect Method The income statement disclosed the following items for the year: Depreciation expense $52,000 Gain on disposal of 30,330 equipment Net income 382,200 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $8,100 Inventory (4,610) Prepaid insurance (1,730) Accounts payable (5,490) Income taxes payable 1,730 Dividends payable 1,210 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 out flows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities

Cash Flows from Operating Activities-Indirect Method The income statement disclosed the following items for the year: Depreciation expense $52,000 Gain on disposal of 30,330 equipment Net income 382,200 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $8,100 Inventory (4,610) Prepaid insurance (1,730) Accounts payable (5,490) Income taxes payable 1,730 Dividends payable 1,210 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 out flows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities

Name: Cash Flows from Operating Activities-Indirect MethodThe income statem
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Cash Flows from Operating Activities-Indirect MethodThe income statement disclosed the following items for the year:Depreciation expense $52,000Gain on disposal of30,330equipmentNet income382,200The changes in the current asset and liability account

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

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.
Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $154,700. Depreciation recorded on store equipment for the year amounted to $25,500. 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 $61,730 $56,790 Accounts receivable (net) 44,260 41,970 Merchandise inventory 60,430 63,890 Prepaid expenses 6,790 5,400 Accounts payable (merchandise creditors) 57,840 53,720 Wages payable 31,610 35,100 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. Statement of Cash Flows (partial) Cash flows from operating activities: - Net income $ Adjustments to reconcile net income to net cash flows from (used for) operating…
Burch Company Income Statement For the year ended December 31 Sales $250,000 Cost of goods sold (160,000) Depreciation expense (26,400) Other expenses (35,000) Income tax expense (12,000) Net income $16,600 Required: Compute the net cash flows from operating activities using the indirect method. 33,200 X
Need Help.
Net Cash Flow From Operating Activities Verna Company's records provided the following information for 2019: decrease in accounts payable, $4,000 loss on sale of land, $1,100 increase in inventory, $7,100 increase in income taxes payable, $2,800 net income, $68,500 patent amortization expense, $1,200 ordinary loss, $6,300 decrease in deferred taxes payable, $2,200 amortization of discount on bonds payable, $1,800 payment of cash dividends, $22,000 depletion expense, $4,800 decrease in salaries payable, $1,900 decrease in accounts receivable, $3,800 gain on sale of equipment, $6,900 proceeds from issuance of stock, $62,000 ordinary gain, $4,000 depreciation expense, $10,000 amortization of discount on investment in bonds, $1,700 Required Prepare the operating activities section of Verna's 2019 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash.
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…
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 $
Please fill in this chart
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
Comment on the Cash flows from operating activities R756 000; Increase in receivables (R396 000) and Cash flows from investing activities (R1 368 000)
Arundel Company disclosed the following information for its recent calendar year. Income Statement Data Revenues Expenses: Salaries expense Utilities expense Depreciation expense Other expenses Net loss $ 95,000 73,000 35,000 28,800 9,000 $(50,800) Cash flows from operating activities Selected Year-End Balance Sheet Data Accounts receivable decrease Purchased a machine for cash Salaries payable increase Other accrued liabilities decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Any loss or amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) $25,000 19,000 24,000 15,000
Cash flows from operating activities-indirect methodThe net income reported on the income statement for the current yearwas $93,700. Depreciation recorded on store equipment for the yearamounted to $31,200. Balances of the current asset and current liabilityaccounts at the beginning and end of the year are as follows: End of Year Beginning of Year CashAccounts receivable (net)InventoriesPrepaid expensesAccounts payable (merchandise creditors)Wages payable $24,10065,00047,2003,25023,4005,300 $19,70056,00050,0008,00017,2006,400 a. Prepare the "Cash flows from operating activities" section of thestatement of cash flows, using the indirect methodb. Briefly explain why net cash flow from operating activities isdifferent than net income.