Net income Depreciation expense Decrease in inventory. Increase in accounts receivable Increase in interest payable Amortization of bond discount Increase in accounts payable Cash dividends paid Required: Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicat a minus sign.) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: $194,000 23,000 11,400 1,340 1,540 2,400 6,400 14,000 Net cash flows from operating activities

Net income Depreciation expense Decrease in inventory. Increase in accounts receivable Increase in interest payable Amortization of bond discount Increase in accounts payable Cash dividends paid Required: Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicat a minus sign.) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: $194,000 23,000 11,400 1,340 1,540 2,400 6,400 14,000 Net cash flows from operating activities

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Description: Net incomeDepreciation expenseDecrease in inventory.Increase in accounts receivableIncrease in interest payable.Amortization of bond discountIncrease in accounts payableCash dividends paidRequired:Prepare a reconciliation of net income to net cash f

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 34E

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Indicate whether each item should be added to or subtracted from net income to arrive at the net cash flow from operating activities. a. Increase in inventory b. Amortization of discount on investment in bonds c. Decrease in accounts payable d. Amortization of discount on bonds payable e. Increase in salaries payable f. Increase in prepaid expenses g. Subsidiary loss under the equity method h. Gain on disposal of equipment i. Decrease in accounts receivable j. Increase in deferred tax liability
Which of the following is the adjustment that is added during the reconciliation of net income to operating cash flows in indirect method? Select one: a. An increase in Prepaid Expenses b. Amortization Expense c. An increase in Accounts Receivable d. Gain on sale of capital assets
In preparing a cash flow statement which of the following is a cash inflow? A. Issue of DebenturesB. Redemption of DebenturesC. Increase in trade ReceivablesD. Decrease in trade payable
RECONCILIATION OF NET INCOME TO NET CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities
Which of the following is not added to net income as an adjustment to reconcile net income to cash from operating activities in the statement of cash flows? A. Increase in deferred tax asset B. Increase in an accrued liability C. Loss on sale of operational asset D. Amortization of discount on bond payable
Indicate whether each item would be added ( 1 ) or subtracted ( 2 ) in the computation of cash flowfrom operating activities using the indirect method.1. Depreciation.2. Inventory decrease.3. Accounts payable decrease.4. Accounts receivable increase.5. Accrued liabilities increase.
Please classify each of the following accounts into its right category of cash flow activities. Which of the following item(s) belong to Operation Activities? (This question may contain multiple answers) Depreciation Fixed assets expenses Change in Inventories Change in Accounts Payable Payment of cash dividends Change in Notes Payable Payment of long-term debt Change in marketable securities Net income Change in ACcount Receivables
Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? a.a decrease in accounts payable b.an increase in inventory c.preferred dividends declared and paid d.a decrease in accounts receivable
Classifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. AnswerOperatingInvestingFinancing AnswerAddSubtract 2. Repurchases of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 3. Purchases of property and equipment. AnswerOperatingInvestingFinancing AnswerAddSubtract 4. Sale of investments classified as long-term. AnswerOperatingInvestingFinancing AnswerAddSubtract 5. Proceeds from the issuance of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 6. Increase in prepaid expenses and other current assets. AnswerOperatingInvestingFinancing AnswerAddSubtract 7. Acquisition for cash of a competitor.…
Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $211,300. Depreciation recorded on equipment and a building amounted to $63,200 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End Beginning of Year of Year Cash $54,730 $58,010 Accounts receivable (net) 69,400 71,580 Inventories 136,830 123,330 Prepaid expenses 7,610 8,180 Accounts payable (merchandise creditors) 61,130 64,740 Salaries payable 8,810 8,060 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.
classification of the changes below into Operating, investing and financing activities for statement of cash flow purposes. Accounts recievable Inventories Prepayments Property, Plant, and equipment (at cost) Accumulated Depreciation Other Non-operating Assets Accounts payable Other current liabilities Long-Term Debt Other Non-operating liabilities common stock Retained Earnings.
View previous at Required information Assume a company prepares the statement of cash flows using the indirect method. The company purchases its Inventory on credit from suppliers. How should a decrease in accounts payable be reflected In the section that reconciles net income to cash flow from operating activitles? Multiple Choice It would be added if the section starts with net income and subtracted if it starts with a net loss It would be added in reconciling net income to cash flow from operafing activities It would be subtracted in reconciling net income to cash flow from operating activities A change in accounts payable does not affect the reconciliation of net income to cash flow from operating activities < Prev 15 of 15 Next Form 1040Sch...pdf 6 Form1040 Sch...pdf B1040 Sohedul...pdf Form8829 (1).pdf MacBook Air