Exercise 12-7 Indirect: Reporting cash flows from operations P2. Annual Income Statement Data Selected Year-End Balance Sheet Data Prepaid expenses increase Inventory increase Accounts payable decrease $50,000 $3,000 Sales 500 Expenses: Cost of goods sold Wages expense Amortization expense 1,000 30,000 10,000 1,500 $ 8,500 Net income Prepare the operating activities section of the statement of cash flows for GreenGarden using the indirect method. (Amou 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

Exercise 12-7 Indirect: Reporting cash flows from operations P2. Annual Income Statement Data Selected Year-End Balance Sheet Data Prepaid expenses increase Inventory increase Accounts payable decrease $50,000 $3,000 Sales 500 Expenses: Cost of goods sold Wages expense Amortization expense 1,000 30,000 10,000 1,500 $ 8,500 Net income Prepare the operating activities section of the statement of cash flows for GreenGarden using the indirect method. (Amou 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

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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Question

Prepare the operating activities section of the statement of cash flows for GreenGarden using the indirect method (Amounts to be deducted should be indicated with a minus sign.)

Exercise 12-7 Indirect: Reporting cash flows from operations P2.
Annual Income Statement Data
Selected Year-End Balance Sheet Data
Prepaid expenses increase
Inventory increase
Accounts payable decrease
$3,000
500
$50,000
Sales
Expenses:
Cost of goods sold
Wages expense
Amortization expense
1,000
30,000
10,000
1,500
$ 8,500
Net income
Prepare the operating activities section of the statement of cash flows for GreenGarden using the indirect method. (Amount-
deducted should be indicated with a minus sign.)
Statement of Cash Flows (partial)
ces
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

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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Help with part "a" please!
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Hamburger Heaven's income statement for the current year and selected balance sheet data for the current and prior years ended December 31 are presented below. Income Statement Sales Revenue $1,860 Expenses: Cost of Goods Sold 850 Depreciation Expense Salaries and Wages Expense Rent Expense 150 450 200 Insurance Expense 75 Interest Expense Utilities Expense 45 Net Income 35 Selected Balance Sheet Accounts Current Year Prior Year 72 Inventory Accounts Receivable 55 355 400 Accounts Payable Salaries/Wages Payable Utilities Payable Prepaid Rent Prepaid Insurance 225 260 39 25 25 10 14 TIP: Prepaid Rent decreased because the amount taken out of Prepaid Rent (and subtracted from net income as Rent Expense) was more than the amount paid for rent in cash during the current year. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
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abels and Amount Descriptions Instructions Labels Dec. 31, Dec. 31, December 31, 20Y3 20Y3 20Y2 For the Year Ended December 31, 20Y3 Amount Descriptions Assets 3 Cash $625,680.00 $586,230.00 Cash received from sale of investments 228,100.00 208,850.00 4 Accounts receivable (net) 5 Inventories Cash paid for purchase of land Cash paid for purchase of equipment Cash received from issuing common 640,910.00 617,650.00 0.00 240,620.00 6 Investments 7 Land 328,090.00 0,00 stock 704,540.00 553,320.00 8 Equipment 9 Accumulated depreciation-equipment Cash dividends (166,310.00) (147840.00) Decrease in accounts payable Decreașe in accounts receivable Decrease in accrued expenses payable 10 Total assets $2,361,010.00 $2,058,830.00 11 Liabilities and Stockholders' Equity $425,280.00 $404,550.00 52,020.00 12 Accounts payable Decrease in inventories 41,990.00 13 Accrued expenses payable Depreciation 24,190.00 20,170.00 14 Dividends payablie Gain on sale of investments 15 Common stock, $4 par…