Exercise 16-20B (Algo) Direct: Cash flows from operating activities LO P5 The following income statement and additional year-end information is provided. Sales Cost of goods sold Gross profit Operating expenses SONAD COMPANY Income Statement For Year Ended December 31 Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income Accounts receivable Inventory $ 256,601 44,952 50,571 5,619 20,603 Statement of Cash Flows (Partial) Cash flows from operating activities $ 1,873,000 917,770 955,230 378,346 576,884 7,492 $ 584,376 $32,350 increase Accounts payable 15,700 increase Salaries payable Prepare the operating activities section of the statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign. $ 14,450 decrease 2,750 decrease

Exercise 16-20B (Algo) Direct: Cash flows from operating activities LO P5 The following income statement and additional year-end information is provided. Sales Cost of goods sold Gross profit Operating expenses SONAD COMPANY Income Statement For Year Ended December 31 Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income Accounts receivable Inventory $ 256,601 44,952 50,571 5,619 20,603 Statement of Cash Flows (Partial) Cash flows from operating activities $ 1,873,000 917,770 955,230 378,346 576,884 7,492 $ 584,376 $32,350 increase Accounts payable 15,700 increase Salaries payable Prepare the operating activities section of the statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign. $ 14,450 decrease 2,750 decrease

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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Problem 12-18B Using financial statements to prepare a statement of cash flows- Indirect method The following financial statements were drawn from the records of Healthy Products Co. Assets Cash Balance Sheets As of December 31 Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Liabilities and stockholders' equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity Sales revenue Cost of goods sold Gross margin Depreciation expense Income Statement For the Year Ended December 31, 2012 Operating income Gain on sale of equipment Loss on disposal of land Net income 2012 $16,120 2,400 2,000 13,700 (11,300) 13,000 $35,920 $3,600 3,200 17,000 12,120 $35,920 Required Prepare a statement of cash flows using the indirect method. $17,480 (6,200) 11,280 (1,750) 9,530 1,800 (600) $10,730 2011 $ 1,940 2,000 2,600 17,100 (12,950) 8,000 $18,690 $ 2,400 4,000 10,000 2,290 $18,690 Additional Data…
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ces ■ ■ I January 1 April 1 October 1 I Required information [The following information applies to the questions displayed below.] Beginning Inventory Purchased Purchased The following information pertains to the inventory of Parvin Company during Year 2. Cash flows from operating activities: Cash inflow from customers. Cash outflow for inventory Cash outflow for operating expenses Cash outflow for income tax expense Net cash flow from operating activities Parvin Company Cash Flows from Operating Activities FIFO ■ ■ 500 units @ $34 2,200 units @ $39 700 units @ $42 $ 320,000 $ During Year 2, Parvin sold 3,100 units of inventory at $85 per unit and incurred $42,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 40 percent income tax rate. Parvin started the period with cash of $77,000, inventory of $17,000, common stock of $52,000, and retained earnings of $42,000. d. Determine the cash…
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Question 13 The extract disclosed below relates to JohNicho Limited for the year ended December 31, 2021 JohNicho Limited Statement of Comprehensive Income for the year ended 31st December: Net Sales Cost of goods sold SG&A Other costs Operating Income (EBIT) Interest Extraordinary income EBT Taxes Net Income Non-current assets Property, Plant & Equipment Motor vehicles Furniture Total non-current assets Current assets Trade Receivables Other Current Assets Inventories Total Current Assets Total assets Current liabilities Accounts payable Other current liabilities Total Current Liabilities JohLex Limited Statement of Financial Position as at 31st December: 2020 GHC Long-term Debt Debenture Total non-current liabilities 10 Shareholders' equity Total Liabilities and Equity GHC 6,386 18,472 6,759 8,461 25,265 19,811 20,753 Required to calculate: (a) Inventory turnover period (in days) (b) Receivable collection period (in days) (c) Payable collection period (in days) (d) Working capital…
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Required information [The following information applies to the questions displayed below] Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit. (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash Accounts receivable. Inventory Total current assets GOLDEN CORPORATION Comparative Balance Sheets December 31 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable. Income taxes payable. Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity GOLDEN CORPORATION Income Statement For Current Year Ended…
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