Lattimer enterprises reported the following information for the year please answer the general accounting question Lattimer Enterprises reported the following information for the year:Accounts Receivable (Beginning of the Year) = $50,000Accounts Receivable (End of the Year) = $60,000Net Income $120,000Using the indirect method, determine the cash flow from operating activities, exclusive ofother adjustments.a. $120,000b. $130,000c. $110,000d. $180,000e. None of the above

Step 1: Definition of the Indirect Method for Cash Flow CalculationThe Indirect Method is a…

Answered: Lattimer Enterprises reported the…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 13MCQ

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During the year, Hepworth Company earned a net income of 61,725. Beginning and ending balances for the year for selected accounts are as follows: There were no financing or investing activities for the year. The above balances reflect all of the adjustments needed to adjust net income to operating cash flows. Required: 1. Prepare a schedule of operating cash flows using the indirect method. 2. Suppose that all the data are used in Requirement 1 except that the ending accounts payable and cash balances are not known. Assume also that you know that the operating cash flow for the year was 20,475. What is the ending balance of accounts payable? 3. CONCEPTUAL CONNECTION Hepworth has an opportunity to buy some equipment that will significantly increase productivity. The equipment costs 25,000. Assuming exactly the same data used for Requirement 1, can Hepworth buy the equipment using this years operating cash flows? If not, what would you suggest be done?
Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400
Income tac was $300,409 for the year. Income tac payable was $28,102 and $42,997 at the beginning and end of the year,reapectively. Cash payants for income tac reportés on the statement pc cash flots usine the direct method la a. $ 285,514 b. 315,304 c. 300,409 d. 371,508
Using the Exhibit below, assume that the balance of Accounts Receivable was $61,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Receivable is $62,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts receivable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on…
Sanders, Inc. reported net income of S205. Beginning and ending balances of accounts receivable were S40 and S45, respectively. Accounts payable balances at the beginning and ending ofthe year were S35 and S33, respectively. Assuming all relevant information has been presented, Sanders should report net operating cash flows of:
Swasey Company provided the following partial comparative balance sheets and the incomestatement for 20X2 Required:Compute operating cash flows using the indirect method.
Hampton Company reports the following information for its recent calendar year. Selected Year-End Balance Sheet Data Accounts receivable increase $ 77,000 Inventory decrease 41,000 Salaries payable increase 12,000 4,000 $ 20,000 Income Statement Data Sales Expenses: Cost of goods sold Salaries expense Depreciation expense Net income Required: Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities-indirect method Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 5,000 5,000 900 Changes in current operating assets and liabilities
ences Hampton Company reports the following information for its recent calendar year. Income Statement Data Sales Expenses: Cost of goods sold Salaries expense Depreciation expense Net income $ 160,000 Accounts receivable increase Inventory decrease Salaries payable increase 100,000 24,000 12,000 $ 24,000 Selected Year-End Balance Sheet Data Required: Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities-indirect method 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 $ 10,000 16,000 1,000
Hampton Company reports the following information for its recent calendar year. Income Statement Data Sales Expenses: Cost of goods sold Salaries expense Depreciation expense Net income Selected Year-End Balance Sheet Data $77,000 Accounts receivable increase Inventory decrease 36,000 Salaries payable increase 9,000 7,000 $ 25,000 Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities-indirect method 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 $ 10,000 3,000 900
Hampton Company reports the following information for its recent calendar year. Prepare the operating activities section of the statement of cash flows using the indirect method. Income Statement Data Selected Year-End Balance Sheet Data Sales.... $160,000 Accounts receivable increase... Inventory decrease.... Salaries payable increase.. $10,000 Expenses: Cost of goods sold.. Salaries expense. 100,000 16,000 24,000 1,000 Depreciation expense. 12,000 Net income... $ 24,000
Hampton Company reports the following Income Statement Data Sales Expenses: Cost of goods sold Salaries expense Depreciation expense Net income information for its recent calendar year. Selected Year-End Balance Sheet Data Accounts receivable increase Inventory decrease $78,000 36,000 Salaries payable increase 8,000 7,000 $27,000 Cash flows from operating activities Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) $6,000 4,000 700 $
Analyzing Cash Flow Ratios Meagan Enterprises reported the following information for the past year of operations:For each transaction, indicate whether the ratio will (I) increase, (D) decrease, or (N) have no effect. Transaction FreeCash Flow$400,000 Operating-Cash-Flow-to-Current Liabilities Ratio1.1 times Operating-Cash-Flow-to-Capital Expenditures Ratio5.0 times a. Recorded credit sales of $17,000 b. Collected $6,000 owed from customers c. Purchased $50,000 of equipment on long-term credit d. Purchased $70,000 of equipment for cash e. Paid $17,000 of wages with cash f. Recorded utility bill of $14,750 that has not been paid

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