Homework Help is Here – Start Your Trial Now!
Business
Accounting
Cash flows from operating activities Selected data derived from the income statement and balance sheet of National Beverage Co. for a recent year are as follows: Income statement data (in thousands): Net income $147,981 Loss on disposal of property (139) Depreciation expense 13,706 Other items involving noncash expense 717 Balance sheet data (in thousands): Increase in accounts receivable 13,154 Increase in inventory 6,805 Increase in prepaid expenses 10,108 Increase in accounts payable and other current liabilities 16,007

Cash flows from operating activities Selected data derived from the income statement and balance sheet of National Beverage Co. for a recent year are as follows: Income statement data (in thousands): Net income $147,981 Loss on disposal of property (139) Depreciation expense 13,706 Other items involving noncash expense 717 Balance sheet data (in thousands): Increase in accounts receivable 13,154 Increase in inventory 6,805 Increase in prepaid expenses 10,108 Increase in accounts payable and other current liabilities 16,007

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

I need help with part "a" please! 

Cash flows from operating activities Selected data derived from the income statement and balance sheet of National Beverage Co. for a recent year are as follows: Income statement data (in thousands): Net income $147,981 Loss on disposal of property (139) Depreciation expense 13,706 Other items involving noncash expense 717 Balance sheet data (in thousands): Increase in accounts receivable 13,154 Increase in inventory 6,805 Increase in prepaid expenses 10,108 Increase in accounts payable and other current liabilities 16,007
Transcribed Image Text:Cash flows from operating activities Selected data derived from the income statement and balance sheet of National Beverage Co. for a recent year are as follows: Income statement data (in thousands): Net income $147,981 Loss on disposal of property (139) Depreciation expense 13,706 Other items involving noncash expense 717 Balance sheet data (in thousands): Increase in accounts receivable 13,154 Increase in inventory 6,805 Increase in prepaid expenses 10,108 Increase in accounts payable and other current liabilities 16,007
a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method for National Beverage Co. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Enter the amounts in thousands of dollars, as shown above. National Beverage Co. Cash Flows from Operating Activities (in thousands) Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Net cash flows from operating activities b. The company has earnings and net cash flow from operating activities. The increase in accounts receivable indicates a(n) in sales. In addition, the company is using its cash to decrease its accounts payable balance, which indicates that the company is Overall, National Beverage is doing financially.
Transcribed Image Text:a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method for National Beverage Co. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Enter the amounts in thousands of dollars, as shown above. National Beverage Co. Cash Flows from Operating Activities (in thousands) Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Net cash flows from operating activities b. The company has earnings and net cash flow from operating activities. The increase in accounts receivable indicates a(n) in sales. In addition, the company is using its cash to decrease its accounts payable balance, which indicates that the company is Overall, National Beverage is doing financially.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Planning
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS