Prepare cash flows statement, use indirect method for operating cash flow.Question 4:XYZ Co. had the following information in 2020:Sales150000COGS80000Operating expenses (excluding depreciation)Interest expense3200080003000TaxesIncrease in Accounts receivableDecrease in inventoryIncrease in Accounts payableDecrease in other payablesIncrease in interest payableDecrease in tax payable700040005000350020001000Prepare operating cash flows using direct method.

Answered: Image /qna-images/answer/a9f94508-c333-41b0-bbd0-cba2ab36e691.jpg

Answered: Prepare operating cash flows using…

Business

Accounting

Prepare operating cash flows using direct method.

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 58PSB

See similar textbooks

Related questions

Q: The profit or loss section of the statement of comprehensive income of ITS NOT OK TO BE OK Company…

A: Statement of cash flows is a financial statement which shows all cash inflows and cash outflows of…

Q: Niagara Ltd Income Statement for the year ended 31 Dec 2020 1 000 650 350 Sales Cost of goods sold…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: ITEM OMR OMR OMR REVENUE Sales 39,095 Total Revenue 332,307.5 COST OF SERVICES SOLD Materials 1.050…

A: Cash flow and income statement , both are different statements having different meaning , way of…

Q: prepare a cashflow statement using indirect method

A: Particulars Amount Amount Net profit 89300 Adjustments: Proposed Dividend 241000…

Q: Graffiti Advertising, Incorporated, reported the following financial statements for the last two…

A: Operating cash flow is the amount of cash generated from operating activities of business. It is…

Q: Contrast the direct and indirect methods of calculating net cash flow from operating activities.

A: A Cash flow statement is a financial statement that provides the summarised information regarding…

Q: The comparative, unclassified statement of financial position for Sunland Ltd. shows the following…

A: A cash flow statement is a financial statement that reports the cash inflows and outflows of a…

Q: Understand the usefulness of the statement of cash flows.

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Prepare the Cash flow statement using Indirect Method.

A: Cash flow from operating activities to be calculated using indirect method. In this the income…

Q: Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Interest expense…

A: Cash flow analysis determines a company's working capital — the amount of money available to run…

Q: Define the net operating cash flow.

A: Net operating cash flow is the the cash generated by a company through its operating activities…

Q: Please explain the cash flow calculation

A: In the given question, the Net present value (NPV) has been calculated by considering the cash…

Q: Determine cash flows from operating activities by the indirect method.

Q: Prepare statment of cash flows using indirect method

A: Statement of cash flows is one of financial statement being prepared in business. It shows all cash…

Q: For the year just completed, Hanna Company had net income of $43,500. Balances in the company's…

A: Cash flow from operating activities part of cash flow statement. it can be paid using the direct and…

Q: Compute net cash flows from operating activities using the indirect method.

A: In financial bookkeeping, working income (OCF) alludes to the measure of cash an organization…

Q: Define Cash Flows from Operatiiing Activities (Cash Flows from Operations

A: The cash flow statement assesses how well a company manages its cash position, i.e. how well it…

Q: Tertiary Company Balance Sheets (in millions) Dec. 31, Dec. 31, ASSETS: 2020 2019 Cash $ 106 $ 107…

A: Cash flow statement: It is a statement which reports the cash inflows and outflows of a business…

Q: Identify the purpose and content of the statement of cash flows.

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: Determine cash flows from operating activities by the direct method.

A: “As it asked here to find out the cash flows from operating activities by the direct method without…

Q: tructions: Prepare a statement of cash flows using the indirect method.

A: The statement of cash flow is a financial statement indicating the cash coming in and going out of a…

Q: EA7. LO 16.3 Use the following information from Chocolate Company's financial statements to…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Belnap Company has provided the following partial comparative balance sheets and the income…

A: Cash flow from Operating Activities relate to the cash flow generated from operations of the…

Q: Headland Beverage Company reported the following items in the most recent ye Net income $47,600…

A: Cash Flow statements shows the movement of cash which is divided into three sections-cash flow from…

Q: direct solution of cash flow statement

A: CFS stands for Cash flow statement refers to the statement which states the inflow or incoming as…

Q: The two approaches to reporting cash flows provided by operating activities are the a. the…

A: Definition: Statement of cash flows: This statement reports all the cash transactions which are…

Q: Define cash flow statement

A: The financial statement is prepared by the companies to summarize the reports for a company and…

Q: Dividend Received Loan payment Amounts Recovered Interest Expense Court Administration Fees Cost of…

A: The cash flow statement is prepared at the end of the period to know the cash position. It reflects…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

Preparing a Statement of Cash Flows Volusia Company reported the following comparative balance sheets for 2019: Required: Prepare a statement of cash flows for Volusia using the indirect method to compute net cash flow from operating activities.
Use the following excerpts from Tungsten Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.
Use the following excerpts from Unigen Companys financial information to prepare the operating section of the statement of cash flows (indirect method) for the year 2018.
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 a spreadsheet and the following financial information from Mineola Companys financial statements to build a template that automatically calculates the net operating cash flow. It should be suitable for use in preparing the operating section of the statement of cash flows (indirect method) for the year 2018.
Use the following information from Juniper Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.
Use the following information from Berlin Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.
Use the following excerpts from Mountain Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.
Financial data for Otto Company follow: a. Compute the ratio of cash to monthly cash expenses. b. Interpret the results computed in (a).
In computing the periods net operating cash flows, why are increases in current liabilities and decreases in current assets added back to net income?
Preparing Net Cash Flows from Operating Activities-Direct Method Refer to the information for Granville Manufacturing Company. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method.
Prepare cash flows statement, use indirect method for operating cash flow. Question 4: XYZ Co. had the following information in 2020: Sales 150000 СOGS 80000 Operating expenses (excluding depreciation) Interest expense 32000 8000 Таxes 3000 Increase in Accounts receivable Decrease in inventory Increase in Accounts payable Decrease in other payables Increase in interest payable Decrease in tax payable 7000 4000 5000 3500 2000 1000