Kennedy, Inc. reported the following data: Net income $139,775 Depreciation expense 14,898 Loss on disposal of equipment (10,435) Gain on sale of building 19,944 Increase in accounts receivable 8,818 Decrease in accounts payable (3,307) 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: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense Loss on disposal of equipment Gain on sale of building Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in accounts payable Net cash flow from operating activities

Kennedy, Inc. reported the following data: Net income $139,775 Depreciation expense 14,898 Loss on disposal of equipment (10,435) Gain on sale of building 19,944 Increase in accounts receivable 8,818 Decrease in accounts payable (3,307) 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: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense Loss on disposal of equipment Gain on sale of building Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in accounts payable Net cash flow from operating activities

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter13: Statement Of Cash Flows

Section: Chapter Questions

Problem 20E

See similar textbooks

Similar questions

Use the following cash transactions relating to Warthoff Company to determine the cash flows from operating, using the direct method.
Use the following information from Acorn Companys financial statements to determine operating net cash flows (indirect method).
Roberts Company provided the following partial comparative balance sheets and the income statement for 20X2. Required: Compute operating cash flows using the indirect method.
Use the following information from Albuquerque Companys financial statements to determine operating net cash flows (indirect method).
Preparing Net Cash Flows from Operating Activities-Direct Method Colassard Industries has the following data available for preparation of its statement of cash flows: Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method.
Use the following information from Birch Companys balance sheets to determine net cash flows from operating activities (indirect method), assuming net income for 2018 of $122,000.
Financial data for Otto Company follow: a. Compute the ratio of cash to monthly cash expenses. b. Interpret the results computed in (a).
Use the following information from Jumper Companys financial statements to determine operating net cash flows (indirect method).
Use the following information from Chocolate Companys financial statements to determine operating net cash flows (indirect method).
List the three operating cash inflows that a company reports under the direct method.