Problem 4-Determining Cash Flows From (Used for) Operating Activities Tanger Inc. reported the following data: Net income Depreciation expense Loss on disposal of equip Increase in accounts receivable Increase in accounts payable $173,000 28,000 12,200 9,750 5,150 Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method.

Problem 4-Determining Cash Flows From (Used for) Operating Activities Tanger Inc. reported the following data: Net income Depreciation expense Loss on disposal of equip Increase in accounts receivable Increase in accounts payable $173,000 28,000 12,200 9,750 5,150 Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method.

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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A draft statement of cash flows contains the following: £ i Profit before tax 22 ii Depreciation 8 iii Increase in inventories -4 iv Decrease in receivables -3 v Increase in payables -2 Net cash inflow from operating activities 21 Which Two of the following corrections needs to be made to the calculation? a. ii and v b. iv and iii c. i and ii d. iv and v
Cash Flows from Operating Activities—Indirect Method Staley Inc. reported the following data: Net income $446,400 Depreciation expense 59,100 Loss on disposal of equipment 39,800 Increase in accounts receivable 27,200 Increase in accounts payable 10,700 Prepare the Cash Flows from 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. Staley Inc. Statement of Cash Flows (partial) Cash flows from operating activities: $ Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities $
Statement of cash flows—indirect method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Line Item Description December 31, 20Y9 December 31, 20Y8 Assets Cash $305,280 $281,690 Accounts receivable (net) 110,590 101,170 Inventories 312,180 299,530 Investments 0 116,050 Land 160,130 0 Equipment 344,450 264,830 Accumulated depreciation—equipment (80,640) (71,410) Total assets $1,151,990 $991,860 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $208,510 $195,400 Accrued expenses payable (operating expenses) 20,740 25,790 Dividends payable 11,520 8,930 Common stock, $10 par 62,210 48,600 Paid-in capital in excess of par—common stock 233,850 134,890 Retained earnings 615,160 578,250 Total liabilities and stockholders' equity $1,151,990 $991,860 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: Equipment and land…
Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $226,390 $211,080 Accounts receivable (net) 82,010 75,810 Inventories 231,510 224,450 Investments 0 86,960 Land 118,750 0 Equipment 255,440 198,450 Accumulated depreciation—equipment (59,800) (53,510) Total assets $854,300 $743,240 Liabilities and Stockholders' Equity Accounts payable $154,630 $146,420 Accrued expenses payable 15,380 19,320 Dividends payable 8,540 6,690 Common stock, $10 par 46,130 36,420 Paid-in capital: Excess of issue price over par-common stock 173,420 101,080 Retained earnings 456,200 433,310 Total liabilities and stockholders’ equity $854,300 $743,240 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: Equipment and…
Statement of cash flows—indirect method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Line Item Description December 31, 20Y9 December 31, 20Y8 Assets Cash $230,690 $215,090 Accounts receivable (net) 83,570 77,250 Inventories 235,920 228,730 Investments 0 88,610 Land 121,010 0 Equipment 260,290 202,220 Accumulated depreciation—equipment (60,940) (54,530) Total assets $870,540 $757,370 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $157,570 $149,200 Accrued expenses payable (operating expenses) 15,670 19,690 Dividends payable 8,710 6,820 Common stock, $10 par 47,010 37,110 Paid-in capital in excess of par—common stock 176,720 103,000 Retained earnings 464,860 441,550 Total liabilities and stockholders' equity $870,540 $757,370 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: Equipment and land were…
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Statement of cash flows—indirect method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Line Item Description December 31, 20Y9 December 31, 20Y8 Assets Cash $269,900 $253,670 Accounts receivable (net) 97,780 91,110 Inventories 276,000 269,750 Investments 0 104,510 Land 141,570 0 Equipment 304,530 238,490 Accumulated depreciation—equipment (71,290) (64,310) Total assets $1,018,490 $893,220 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $184,350 $175,960 Accrued expenses payable (operating expenses) 18,330 23,220 Dividends payable 10,180 8,040 Common stock, $10 par 55,000 43,770 Paid-in capital in excess of par—common stock 206,750 121,480 Retained earnings 543,880 520,750 Total liabilities and stockholders' equity $1,018,490 $893,220 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: Equipment and land…
Hamburger Heaven's income statement for the current year and selected balance sheet data for the current and prior years ended December 31 are presented below. Income Statement Sales Revenue $1,860 Expenses: Cost of Goods Sold 850 Depreciation Expense Salaries and Wages Expense Rent Expense 150 450 200 Insurance Expense 75 Interest Expense Utilities Expense 45 Net Income 35 Selected Balance Sheet Accounts Current Year Prior Year 72 Inventory Accounts Receivable 55 355 400 Accounts Payable Salaries/Wages Payable Utilities Payable Prepaid Rent Prepaid Insurance 225 260 39 25 25 10 14 TIP: Prepaid Rent decreased because the amount taken out of Prepaid Rent (and subtracted from net income as Rent Expense) was more than the amount paid for rent in cash during the current year. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
Cash Flows from Operating Activities—Indirect Method Staley Inc. reported the following data: Net income $298,400 Depreciation expense 59,600 Loss on disposal of equipment 24,800 Increase in accounts receivable 13,200 Increase in accounts payable 11,800 Prepare the Cash Flows from 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.
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Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $239,460 $223,010 Accounts receivable (net) 86,750 80,100 Inventories 244,880 237,150 Investments 0 91,870 Land 125,600 0 Equipment 270,190 209,660 Accumulated depreciation—equipment (63,250) (56,540) Total assets $903,630 $785,250 Liabilities and Stockholders' Equity Accounts payable $163,560 $154,690 Accrued expenses payable 16,270 20,420 Dividends payable 9,040 7,070 Common stock, $10 par 48,800 38,480 Paid-in capital: Excess of issue price over par-common stock 183,440 106,790 Retained earnings 482,520 457,800 Total liabilities and stockholders’ equity $903,630 $785,250 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: Equipment and…
Staley Inc. reported the following data: Net income Depreciation expense Loss on disposal of equipment Increase in accounts receivable Increase in accounts payable Prepare the Cash Flows from 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. $485,300 57,200 30,500 22,400 12,100 Staley Inc. Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities