Monty Corporation had the following 2025 income statement.Sales revenue$202,000Cost of goods sold132,000Gross profit70,000Operating expenses (includes depreciation of $20,000)51,000Net income$19,000The following accounts increased during 2025: Accounts Receivable $11,000, Inventory $12,000, and Accounts Payable $14,000.Prepare the cash flows from operating activities section of Monty's 2025 statement of cash flows using the direct method.MONTY CORPORATIONStatement of Cash Flows-Direct Method (Partial)>>$+A$

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Answered: Monty Corporation had the following…

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 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

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Similar questions

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.
Use the following excerpts from Indigo Companys balance sheets to determine net cash flows from operating activities (indirect method), assuming net income for 2018 of $225,000.
In the current year, Harrisburg Corporation had net income of 35,000, a 9,000 decrease in accounts receivable, a 7,000 increase in inventory, an 8,000 increase in salaries payable, a 13,000 decrease in accounts payable, and 10,000 in depreciation expense. Using the indirect method, prepare the operating activities section of its statement of cash flows based on this information.
Mahoney Company has the following financial statements for 2017 and 2018. Assume that the purchase of equipment and the withdrawals were in the form of cash. Required Prepare a statement of cash flows for the year ended December 31, 2018. Check Figure Net cash flows from operating activities, 76,800
Statement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income, 68,000 b. Increase in accounts receivable, 4,400 c. Receipt from sale of common stock, 12,300 d. Depreciation expense, 11,300 e. Dividends paid, 24,500 f. Payment for purchase of building, 65,000 g. Bond discount amortization, 2,700 h. Receipt from sale of long-term investments at cost, 10,600 i. Payment for purchase of equipment, 8,000 j. Receipt from sale of preferred stock, 20,000 k. Increase in income taxes payable, 3,500 l. Payment for purchase of land, 9,700 m. Decrease in accounts payable, 2,900 n. Increase in inventories, 10,300 o. Beginning cash balance, 18,000 Required: Prepare Mueller Company's statement of cash flows.
Skysong Corporation had the following 2025 income statement. Sales revenue $186,000 Cost of goods sold 127,000 Gross profit 59,000 Operating expenses (includes depreciation of $22,000) 45,000 Net income $14,000 The following accounts increased during 2025: Accounts Receivable $13,000, Inventory $12,000, and Accounts Paya Prepare the cash flows from operating activities section of Skysong's 2025 statement of cash flows using the direct n SKYSONG CORPORATION Statement of Cash Flows-Direct Method (Partial) For the Year Ended December 31, 2025 Cash Flows from Operating Activities Cash Received from Customers Cash Payment to Suppliers Cash Payment for Operating Expenses $ $ Net Cash Provided by Operating Activities $
Marin Corporation had the following 2025 income statement. Sales revenue $186,000 Cost of goods sold 127,000 Gross profit 59,000 Operating expenses (includes depreciation of $22,000) 45,000 Net income $14,000 The following accounts increased during 2025: Accounts Receivable $13,000, Inventory $12,000, and Accounts Payable $14,000. Prepare the cash flows from operating activities section of Marin's 2025 statement of cash flows using the direct method. MARIN CORPORATION Statement of Cash Flows-Direct Method (Partial) LA
Sarasota Corporation had the following 2025 income statement. Sales revenue $220,000 Cost of goods sold 131,000 Gross profit 89,000 Operating expenses (includes depreciation of $23,000) 46,000 Net income $43,000 The following accounts increased during 2025: Accounts Receivable $12,000, Inventory $12,000, and Accounts Payable $12,000. Prepare the cash flows from operating activities section of Sarasota's 2025 statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) SARASOTA CORPORATION Statement of Cash Flows-Indirect Method (Partial) For the Year Ended December 31, 2025 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory : $ DOOD $ $ Net Cash Provided by Operating Activities
Bloom Corporation had the following 2025 income statement. Sales revenue $200,000 Cost of goods sold 120,000 Gross profit 80,000 Operating expenses (includes depreciation of $21,000) 50,000 Net income $30,000 The following accounts increased during 2025: Accounts Receivable $12,000, Inventory $11,000, and Accounts Payable $13,000. Prepare the cash flows from operating activities section of Bloom's 2025 statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) BLOOM CORPORATION Statement of Cash Flows-Indirect Method (Partial) For the Year Ended December 31, 2025
Swifty Ltd. had the following 2023 income statement data: Revenues Expenses 1/1/23 Revenues $113,000 In 2023, Swifty had the following activity in selected accounts: 12/31/23 49,200 $63,800 Accounts Receivable 19,100 113,000 34,780 1,320 Write-offs 96,000 Collections Allowance for Expected Credit Losses Write-offs 1.320 Swifty Ltd. Statement of Cash Flows (Indirect Method) 1,300 1.540 1.520 1/1/23 Loss on impairment 12/31/23 Prepare Swifty's cash flows from operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a negative sign e.g. -10,000 or in parenthesis eg. (10,000).
The following comparative information is available for Pharoah Company for 2025. LIFO FIFO Sales revenue $87,000 $87,000 Cost of goods sold 41,000 34,100 Operating expenses (including depreciation) 28,000 28,000 Depreciation 9,000 9,000 Cash paid for inventory purchases 32,990 32,990 Determine net cash provided by operating activities under each approach. Assume that all sales were on a cash basis and that income taxes and operating expenses, other than depreciation, were on a cash basis. LIFO Net cash provided by operating activities $ FIFO $ Calculate the quality of earnings ratio under each approach. (Round answers to 2 decimal places, e.g. 5.15.) LIFO Quality of earnings ratio FIFO
How do I describe the cash flow pattern

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