Last year Cucumber Company reported a cost of goods sold of $30,000. Inventories decreased by $7,000 during the year, and accounts payable decreased by $13,000. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be: * O $23,000 O $36,000 O $24,000 O $43,000

Last year Cucumber Company reported a cost of goods sold of $30,000. Inventories decreased by $7,000 during the year, and accounts payable decreased by $13,000. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be: * O $23,000 O $36,000 O $24,000 O $43,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The cost of goods sold during the year was $341600. Inventory decreased by $11200 during the year and accounts payable decreased by $13400 during the year. Using the direct method of reporting cash flows from operating activities, cash payments for inventory total $355000. $343800. $366200. $317000.
Mashy Auto Parts Store had net income of $81,000 for the year just ended. Mashy collected the following additional information to prepare its statement of cash flows for the year: Increase in accounts receivable $102,000 Decrease in merchandise inventory $18,000 Decrease in accounts payable $35,000 Increase in retained earnings $29,000 Cash received from sale of building $215,000 Gain on sale of building $47,000 Depreciation expense $32,000 Mashy uses the indirect method to prepare its statement of cash flows. What is Mashy's net cash provided (used) by operating activities? a. $41,000 b. $(53,000) c. $185,000 d. $279,000
Queen Company's cost of goods sold for the accounting period just ended was $650,000. During the same period, Queen's inventory decreased by $10,000 and its liability to inventory suppliers increased by $8,000. How much cash paid to suppliers should Queen report on its statement of cash flows? a. $668,000 b. $652,000 c. $648,000 d. $632,000
The cost of goods sold during the year was $281200. Inventory increased by $9000 during the year and accounts payable decreased by $14100 during the year. Using the direct method of reporting cash flows from operating activities, cash payments for inventory total?
A company's Income Tax Payable account decreased from $19 million to $17 million during the year. If its Income tax expense was $92 million, what would be shown as cash pald for Income taxes under the direct method? 16 Multiple Choice eBook A cash outflow of $94 million. A cash outflow of $17 million. A cash outflow of $92 million. A cash outflow of $90 million.
Magic Mirror Company had net income of $850,750. Depreciation expense is $85,000. During the year, accounts receivable and inventory increased by $62,500 and $72,600, respectively. Prepaid expenses and accounts payable decreased by $39,100 and $46,500, respectively. There was also a gain on the sale of equipment of $18,250. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method?
Yeoman Inc. reported the following data: Net income $170,000 Depreciation expense 29,000 Loss on disposal of equipment 11,850 Increase in accounts receivable 10,490 Increase in accounts payable 5,430 Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Salud Company reports the following information. Selected Annual Income Statement Data Net income Depreciation expense Gain on sale of machinery Selected Year-End Balance Sheet Data $ 415,000 Accounts receivable increase 90,500 Prepaid expenses decrease 20,900 Accounts payable increase Wages payable decrease $ 45,200 12,900 6,400 3,100 Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. Note: Amounts to be 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
The net income reported on the income statement for the current year was $255000. Depreciation was $39600. Account receivable and inventories decreased by $12300 and $35300, respectively. Prepaid expenses and accounts payable increased, respectively, by $1200 and $7600. How much cash was provided by operating activities? $305700 O $321100 $348600 O $333400
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 $2,280 Sales Revenue Expenses: Cost of Goods Sold 950 Depreciation Expense Salaries and Wages Expense 250 550 Rent Expense 300 Insurance Expense 85 Interest Expense Utilities Expense 65 55 Net Income 25 Selected Balance Sheet Accounts Prior Year Current Year Inventory 92 65 405 500 Accounts Receivable Accounts Payable Salaries/Wages Payable Utilities Payable Prepaid Rent Prepaid Insurance 225 260 39 25 25 70 4 11 13 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 direct method. TIP: Convert the cost of goods sold to cash paid to suppliers by adding the increase…
Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $137,500. Depreciation recorded on store equipment for the year amounted to $22,700. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Endof Year Beginningof Year Cash $53,350 $48,550 Accounts receivable (net) 38,250 35,880 Merchandise inventory 52,230 54,620 Prepaid expenses 5,870 4,610 Accounts payable (merchandise creditors) 49,990 45,930 Wages payable 27,320 30,000 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Use the following information to compute net change in cash for a firm: Net income for the year is $43,900 Account receivable increased by $10,420 Inventory increased by $1,875 Depreciation expense for the year is $8,000 Account payable decreased by $5,782 Other current liabilities increased by $3,500 Taxes payable decreased by $1,970 Old equipment with a book value of $2,200 was sold for $1,325 Old appliances were sold for $24,000 at a gain of $4,800 A new machine was purchased for $10,000 1,000 shares of common stock were issued at par value of $10 each and sold at par (for $10 each) Declared and paid dividends of $5,000 Reimbursed $7,000 of an outstanding loan’s capital