**Cash Flows from Operating Activities—Indirect Method**The net income reported on the income statement for the current year was $147,000. Depreciation recorded on store equipment for the year amounted to $24,300. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:| Account | End of Year | Beginning of Year ||--------------------------------------------|-------------|-------------------|| Cash | $59,090 | $53,770 || Accounts receivable (net) | $42,370 | $39,740 || Inventories | $57,850 | $60,490 || Prepaid expenses | $6,500 | $5,110 || Accounts payable (merchandise creditors) | $55,370 | $50,870 || Wages payable | $30,250 | $33,230 |### Instructions: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. ### Explanation of Financial Data:The financial data provided includes balances of specific accounts at the beginning and end of the year. Changes in these balances need to be analyzed to prepare the cash flow statement using the indirect method. - **Cash**: This provides information on cash holdings at the start and end of the period.- **Accounts Receivable (net)**: This reflects amounts customers owe the business.- **Inventories**: The goods available for sale by the business.- **Prepaid expenses**: Payments made for expenses not yet incurred.- **Accounts Payable (merchandise creditors)**: Amounts the business owes to suppliers.- **Wages payable**: Salaries owed to employees.To calculate the cash flows from operating activities, adjustments to the net income will be made based on changes in these current asset and liability accounts, along with non-cash charges like depreciation.

Name: **Cash Flows from Operating Activities—Indirect Method**The net incom
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: **Cash Flows from Operating Activities—Indirect Method**The net income reported on the income statement for the current year was $147,000. Depreciation recorded on store equipment for the year amounted to $24,300. Balances of the current asset and c

Business

Accounting

Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $147,000. Depreciation recorded on store equipment for the y amounted to $24,300. 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 $59,090 $53,770 Cash Accounts receivable (net) 42,370 39,740 57,850 60,490 Inventories 6,500 5,110 Prepaid expenses Accounts payable (merchandise creditors) 55,370 50,870 30,250 33,230 Wages payable a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the indirect method. Use the minus sigr indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $147,000. Depreciation recorded on store equipment for the y amounted to $24,300. 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 $59,090 $53,770 Cash Accounts receivable (net) 42,370 39,740 57,850 60,490 Inventories 6,500 5,110 Prepaid expenses Accounts payable (merchandise creditors) 55,370 50,870 30,250 33,230 Wages payable a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the indirect method. Use the minus sigr indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

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 $271,100. Depreciation recorded on equipment and a building amounted to $81,100 for the year. 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 $71,570 $75,860 Accounts receivable (net) 90,750 93,610 Inventories 178,930 161,280 Prepaid expenses 9,950 10,700 Accounts payable (merchandise creditors) 79,940 84,660 Salaries payable 11,520 10,540 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 Operating Activities—Indirect Method The net income reported on the income statement for the current year was $127,200. Depreciation recorded on store equipment for the year amounted to $21,000. 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 $50,630 $46,070 Accounts receivable (net) 36,300 34,050 Inventories 49,570 51,830 Prepaid expenses 5,570 4,380 Accounts payable (merchandise creditors) 47,440 43,580 Wages payable 25,920 28,470 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: Net income $fill in the blank ec5d5a033f89031_2 Adjustments to…
Ravenna Company is a merchandiser using the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash and cash equivalents $ 89,000 $ 106,750 Accounts receivable 71,500 77,000 Inventory 96,000 87,500 Total current assets 256,500 271,250 Property, plant, and equipment 255,000 245,000 Less accumulated depreciation 85,000 61,250 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable $ 56,000 $ 99,500 Income taxes payable 43,500 57,000 Bonds payable 105,000 87,500 Common stock 122,500 105,000 Retained earnings 99,500 106,000 Total liabilities and stockholders’ equity $ 426,500 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and sold a piece of equipment for $5,250 that originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or…
Ravenna Company is a merchandiser using the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash and cash equivalents $ 89,000 $ 106,750 Accounts receivable 71,500 77,000 Inventory 96,000 87,500 Total current assets 256,500 271,250 Property, plant, and equipment 255,000 245,000 Less accumulated depreciation 85,000 61,250 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable $ 56,000 $ 99,500 Income taxes payable 43,500 57,000 Bonds payable 105,000 87,500 Common stock 122,500 105,000 Retained earnings 99,500 106,000 Total liabilities and stockholders’ equity $ 426,500 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and sold a piece of equipment for $5,250 that originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or…
Flint CorporationStatement of Cash FlowsFor the Year Ended January 31, 2022 Sources of cash From sales of merchandise $381,940 From sale of capital stock 401,520 From sale of investment (purchased below) 79,460 From depreciation 55,130 From issuance of note for truck 20,100 From interest on investments 6,046 Total sources of cash 944,196 Uses of cash For purchase of fixtures and equipment 320,190 For merchandise purchased for resale 259,438 For operating expenses (including depreciation) 170,900 For purchase of investment 74,360 For purchase of truck by issuance of note 20,100 For purchase of treasury stock 9,930 For interest on note payable 2,982 Total uses of cash 857,900 Net increase in cash $86,296 Pete claims that Flint Corporation’s statement of cash flows is an excellent…
Ravenna Company is a merchandiser using the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash and cash equivalents $ 89,000 $ 106,750 Accounts receivable 71,500 77,000 Inventory 96,000 87,500 Total current assets 256,500 271,250 Property, plant, and equipment 255,000 245,000 Less accumulated depreciation 85,000 61,250 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable $ 56,000 $ 99,500 Income taxes payable 43,500 57,000 Bonds payable 105,000 87,500 Common stock 122,500 105,000 Retained earnings 99,500 106,000 Total liabilities and stockholders’ equity $ 426,500 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and sold a piece of equipment for $5,250 that originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or…
Ravenna Company is a merchandiser using the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash and cash equivalents $ 89,000 $ 106,750 Accounts receivable 71,500 77,000 Inventory 96,000 87,500 Total current assets 256,500 271,250 Property, plant, and equipment 255,000 245,000 Less accumulated depreciation 85,000 61,250 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable $ 56,000 $ 99,500 Income taxes payable 43,500 57,000 Bonds payable 105,000 87,500 Common stock 122,500 105,000 Retained earnings 99,500 106,000 Total liabilities and stockholders’ equity $ 426,500 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and sold a piece of equipment for $5,250 that originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or…
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 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…
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.
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $260,900. Depreciation recorded on equipment and a building amounted to $78,000 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 $72,010 $74,890 Accounts receivable (net) 91,310 92,410 Inventories 180,030 159,220 Prepaid expenses 10,010 10,560 Accounts payable (merchandise creditors) 80,440 83,580 Salaries payable 11,590 10,410 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: Net income $fill in the blank 67ad34fdefd504f_2…
Ravenna Company is a merchandiser using the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash and cash equivalents $ 89,000 $ 106,750 Accounts receivable 71,500 77,000 Inventory 96,000 87,500 Total current assets 256,500 271,250 Property, plant, and equipment 255,000 245,000 Less accumulated depreciation 85,000 61,250 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable $ 56,000 $ 99,500 Income taxes payable 43,500 57,000 Bonds payable 105,000 87,500 Common stock 122,500 105,000 Retained earnings 99,500 106,000 Total liabilities and stockholders’ equity $ 426,500 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and sold a piece of equipment for $5,250 that originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or…