Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows:Line Item Description Dec. 31, 20Y2 Dec. 31, 20Y1Accounts receivable $16,200 $15,400Inventory 70,200 70,900Accounts payable 22,600 21,300Dividends payable 20,000 22,000Adjust net income of $100, 400 for changes in operating assets and liabilities to arrive at net cash flowsfrom operating activities.fill in the blank 1 of 1$

Compute changes from Y1 to Y2: AR = 16,200 - 15,400 = 800 increasedInventory = 70,200 - 70,900 =…

Answered: Mohammed Corporation's comparative…

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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The following table is from the Home Depot Website. Which number should be used for EBIT in order to calculating the component of Operating Cashflows (OCF), for Q1 of 2022 (in millions). THE HOME DEPOT, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS in millions, except per share data Net sales Cost of sales Gross profit Operating expenses: Selling, general and administrative Depreciation and amortization Total operating expenses Operating income Interest and other (income) expense: Interest income and other, net Interest expense Interest and other, net Earnings before provision for income taxes Provision for income taxes Net earnings O 5560 5929 O4145 O 5781 (Unaudited) $ Three Months Ended May 1, 2022 38,908 $ 25.763 13.145 6,610 606 7,216 5,929 (3) 372 369 5,560 1.329 $ 4,231 May 2, 2021 37,500 24,758 12.742 6,374 587 6.961 5,781 (6) 339 333 5,448 1,303 4,145 4
Staley Inc. reported the following data: Line Item Description Amount Net income $449,900 Depreciation expense 55,600 Loss on disposal of equipment 32,900 Increase in accounts receivable 20,800 Increase in accounts payable 10,500 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 out flows, cash payments, decreases in cash, or any negative adjustments. blankStaley Inc.Statement of Cash Flows (partial) Line Item Description Amount Amount Cash flows from (used for) operating activities: $Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Loss on disposal of equipment Changes in current operating assets and liabilities: Increase in accounts receivable Increase in accounts payable Net cash flows from operating activities $Net cash…
Changes in Current Operating Assets and Liabilities-Indirect Method Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 $17,200 $17,000 68,800 69,500 27,800 26,800 18,000 19,000 Adjust net income of $84,600 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. 84,100 X Accounts receivable Inventory Accounts payable Dividends payable Feedback Check My Work Once you have calculated the changes in the current operating assets and liabilities determine what impact those changes would have on cash. For example if accounts receivable has increased from last year to this year does that mean the company has collected more cash or less cash? If accounts payable has decreased does that mean the company has more cash or less cash?
The following information is available from the current period financial statements: Net income $117,355 Depreciation expense 24,849 Increase in accounts receivable 15,110 Decrease in accounts payable 21,436 The net cash flow from operating activities using the indirect method is a.$105,658 b.$178,750 c.$55,960 d.$117,355
Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $14,000 $13,400 Inventory 70,500 71,200 Accounts payable 11,900 10,600 Dividends payable 15,000 16,000 Adjust net income of $74,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
Changes in Current Operating Assets and Liabilities Paneous Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $39,490 $31,590 Inventory 76,340 65,150 Accounts payable 60,750 45,410 Dividends payable 18,000 24,000 Adjust net income of $351,000 for changes in operating assets and liabilities to arrive at net cash flows from operating activities. $ 353,250 X
The accounting records of Hampton Company provided the data below ($ in thousands). Net income Depreciation expense Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in salaries payable Increase in interest payable $33,300 9,400 5,600 7,100 2,000 4,300 1,400 Required: Prepare a reconciliation of net income to net cash flows from operating activities.
In preparing a company's statement of cash flows using the indirect method, the following information is available: Net income $71,000 Accounts payable increased by 19,900 Accounts receivable decreased by 26,900 Inventories increased by 8,800 Depreciation expense 35,700 Net cash provided by operating activities was: Multiple Choice $144,700.
Statement of cash flows for the following: The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows: 1 Dec. 31, 20Y3 Dec. 31, 20Y2 2 Assets 3 Cash $155,000.00 $150,000.00 4 Accounts receivable (net) 450,000.00 400,000.00 5 Inventories 770,000.00 750,000.00 6 Investments 0.00 100,000.00 7 Land 500,000.00 0.00 8 Equipment 1,400,000.00 1,200,000.00 9 Accumulated depreciation-equipment (600,000.00) (500,000.00) 10 Total assets $2,675,000.00 $2,100,000.00 11 Liabilities and Stockholders’ Equity 12 Accounts payable (merchandise creditors) $340,000.00 $300,000.00 13 Accrued expenses payable (operating expenses) 45,000.00 50,000.00 14 Dividends payable 30,000.00 25,000.00 15 Common stock, $4 par 700,000.00 600,000.00 16 Paid-in capital in excess of par—common stock 200,000.00…
Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the following information: Income Statement for Current Year Service revenue Expenses Salaries Depreciation Amortization of copyrights Other expenses Net loss Partial Balance Sheet Accounts receivable Salaries payable Other accrued liabilities $ 42,000 8,200 220 10,200 Current Year $ 9,300 13,000 1,500 Cash flows from operating activities: RODRIGUEZ COMPANY Statement of Cash Flows (Partial) $ 53,000 60,620 $ (7,620) Prior Year $ 16,600 In addition, Rodriguez bought a small service machine for $7,000. Required: 1.Present the operating activities section of the statement of cash flows for Rodriguez Company using the indirect method. Note: List loss amount and cash outflows as negative amounts. 2,000 5,200
Formulating Financial Statements from Raw Data Following is selected financial information from Greenwood Industries, for its fiscal year ended ($ millions). Cash and cash equivalents, end of year Net cash from operations Net sales Stockholders' equity, end of year Cost of goods sold Net cash from financing Total liabilities, end of year Other expenses, including income taxes Noncash assets, end of year Net cash from investing Net income Effect of exchange rate changes on cash Cash and cash equivalents, beginning of year Net income Cost of goods sold REQUIRED a. Prepare an income statement, balance sheet, and statement of cash flows for Greenwood Industries. Note: Do not use negative signs with your answers in the Income Statement. Net cash flows from operations $2,516.7 5,514.3 26,439.9 14,411.2 Greenwood Industries Income Statement ($ millions) # 17,245.1 (2,912.3) 31,798.9 5,878.7 43,693.4 (729.3) 3,316.2 (31.1) 675.0 # # ♦ + ♦ + $ $ $ 0 0 0 0 0 Greenwood Industries Balance Sheet (5…
Statement of Cash Flows The comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Dec. 31, 20Y8 Dec. 31, 20Y7 Assets Cash $76,950 $94,390 Accounts receivable (net) 118,230 127,250 Merchandise inventory 168,910 157,720 Prepaid expenses 6,880 4,780 Equipment 344,060 282,580 Accumulated depreciation-equipment (89,460) (69,300) Total assets $625,570 $597,420 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $131,370 $124,860 Mortgage note payable 0 179,230 Common stock, $1 par 21,000 13,000 Excess of paid-in capital over par 304,000 168,000 Retained earnings 169,200 112,330 Total liabilities and stockholders’ equity $625,570 $597,420 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: Net income, $145,590. Depreciation…

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