Crane Company completed its first year of operations on December 31, 2022. Its initial income statementshowed that Crane had sales revenue of $197,500 and operating expenses of $71,300. Accounts receivableand accounts payable at year-end were $62,400 and $18,300, respectively. Assume that accounts payablerelated to operating expenses. Ignore income taxes.Compute net cash provided by operating activities using the direct method. (Show amounts that decrease cashflow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)Net cash provided by operating activitiesGA$84,162

Direct method of net cash operating activities is calculated based on the actual cash inflows and…

Answered: Crane Company completed its first year…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Splish Company reported 2020 net income of $154,400. During 2020, accounts receivable increased by $15,690 and accounts payable increased by $9,962. Depreciation expense was $48,400. Prepare the cash flows from operating activities section of the statement of cash flows. (Show amounts that decrease cash flow with either a - sign eg. -15,000 or in parenthesis e.g. (15,000).) SPLISH COMPANY Cash Flow Statement Adjustments to reconcile net income to %24
The net income for the year for Genesis, Inc. is $750,000,but the statement of cash flows reports that the net cashprovided by operating activities is $640,000. What mightaccount for the difference?
Last year Burch Corporation's cash account decreased by $20,000. Net cash provided by investing activities was $7,500. Net cash used in financing activities was $17,000. On the statement of cash flows, the net cash flow provided by (used in) operating activities was:
Bryant Company reports net income of $23,600. For the year, depreciation expense is $10,600 and the company reports a gain of $6,600 from sale of machinery. It also had a $5,600 loss from retirement of notes. Compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) Cash Flows from Operating Activities (Indirect) Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash
Metlock, Inc. had an increase in inventory of $108000. The cost of goods sold was $504000. There was a $27000 decrease in accounts payable from the prior period. Using the direct method of reporting cash flows from operating activities, what were Metlock's cash payments to suppliers?
Prepare the statement of cash flows of Dux Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)
Sweet Acacia Industries reported net income of $1.40 million in 2022. Depreciation for the year was $224,000, accounts receivable decreased $490,000, and accounts payable decreased $392,000. Compute net cash provided by operating activities using the indirect approach. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Sweet Acacia Industries Statement of Cash Flows-Indirect Approach Adjustments to reconcile net income to $
Cain Inc. reports net income of $15,000. Its comparative balance sheet shows the following changes: accounts receivable increased $6,000; inventory decreased $8,000; prepaid insurance decreased $1,000; accounts payable increased $3,000; and taxes payable decreased $2,000. Compute cash flows from operations using the indirect method.
Laser World reports net income of $470,000. Depreciaiton expense is $32,000, accounts receivable increases $10,000, and accounts payable decreases $12,000. Calculate net cash flows from operating activities using the indirect method. (List cash outflows and any decreases in cash as negative amounts)
Bryant Company reports net income of $21,200. For the year, depreciation expense is $8,200 and the company reports a gain of $4,200 from sale of machinery. It also had a $3,200 loss from retirement of notes. Compute cash flows from operations using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Cash Flows from Operating Activities (Indirect) Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash
Kennedy, Inc. reported the following data: Net income $149,333 Depreciation expense 16,206 Loss on disposal of equipment (10,457) Gain on sale of building 21,852 Increase in accounts receivable 9,450 Decrease in accounts payable (3,853) 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, a decrease in cash, cash payments, or any negative adjustments. Kennedy, Inc. Statement of Cash Flow 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 %24 %24
Situation A: A company has revenues of P200,000 and operating expenses of P110,000 in its 1st year of operations, 2019. For the purpose ignore income taxes.Accounts receivable and accounts payable at year end were P71,000 and P29,000, respectively. Assume that the accounts payable related to operating expenses. Using the direct method, compute net cash provided by operating activities. Situation B:Cost of goods sold were at P310,000 and operating expenses (exclusive of depreciation) P230,000. The comparative balance sheet for the year shows that inventory increased P26,000, prepaid expenses decreased P8,000, accounts payable (related to merchandise) decreased P17,000, and accrued expenses payable increased P11,000. Compute (a) cash payments to suppliers and (b) cash payments for operating expenses.

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