Homework Help is Here – Start Your Trial Now!
Business
Accounting
Please do not give solution in image format thanku

Please do not give solution in image format thanku

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Please do not give solution in image format thanku
[The following information applies to the questions displayed below.) Green Brands, Incorporated (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBI's Year 2 and Year 1 year-end balance sheets. Assume all sales and purchases of inventory are made on account. Account Title Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Unearned service revenue The Year 2 income statement is shown next. Income Statement Sales Cost of goods sold Gross margin Service revenue Insurance expense Salaries expense Depreciation expense Operating income Gain on sale of equipment Net income Cash flows from operating activities: Add: Deduct GREEN BRANDS, INCORPORATED Statement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Add: noncash expenses $ 615,000 (380,000) 235,000 b. Prepare the operating activities section of the statement of cash flows using the indirect method. (Cash outflows should be indicated with a minus sign.) Net cash flow from onerating activities Year 2 $ 21,100 56,300 18,100 25,100 4,950 900 4,600 (39,000) (158,000) (4,100) 38,500 4,900 $ 43,400 S Year 1 $ 26,300 50,700 0 25,700 17,100 4,100 3,050
Transcribed Image Text:[The following information applies to the questions displayed below.) Green Brands, Incorporated (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBI's Year 2 and Year 1 year-end balance sheets. Assume all sales and purchases of inventory are made on account. Account Title Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Unearned service revenue The Year 2 income statement is shown next. Income Statement Sales Cost of goods sold Gross margin Service revenue Insurance expense Salaries expense Depreciation expense Operating income Gain on sale of equipment Net income Cash flows from operating activities: Add: Deduct GREEN BRANDS, INCORPORATED Statement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Add: noncash expenses $ 615,000 (380,000) 235,000 b. Prepare the operating activities section of the statement of cash flows using the indirect method. (Cash outflows should be indicated with a minus sign.) Net cash flow from onerating activities Year 2 $ 21,100 56,300 18,100 25,100 4,950 900 4,600 (39,000) (158,000) (4,100) 38,500 4,900 $ 43,400 S Year 1 $ 26,300 50,700 0 25,700 17,100 4,100 3,050
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Database design
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS