RM Company, a manufacturer, has provided the following information pertaining to its recent year of operation: Net Income = $390,000 • Accounts payable increased $33,000 • Prepaid rent decreased $14,500 Depreciation expense was $44,000 • Accounts receivable increased $43,000 Gain on sale of building was $15,500 ● ● Sale of long-term investment for $9,000 cash • Wages payable decreased $30,000 Unearned revenue increased $53,000 Patent amortization expense was $5,000 Using the indirect method, how much was RM's net cash provided by operating activities? (In other words, what would RM Company show as its net Cash Flow from Operations?)
RM Company, a manufacturer, has provided the following information pertaining to its recent year of operation: Net Income = $390,000 • Accounts payable increased $33,000 • Prepaid rent decreased $14,500 Depreciation expense was $44,000 • Accounts receivable increased $43,000 Gain on sale of building was $15,500 ● ● Sale of long-term investment for $9,000 cash • Wages payable decreased $30,000 Unearned revenue increased $53,000 Patent amortization expense was $5,000 Using the indirect method, how much was RM's net cash provided by operating activities? (In other words, what would RM Company show as its net Cash Flow from Operations?)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
![RM Company, a manufacturer, has
provided the following information
pertaining to its recent year of
operation:
Net Income = $390,000
Accounts payable increased
$33,000
Prepaid rent decreased $14,500
Depreciation expense was $44,000
Accounts receivable increased
$43,000
Gain on sale of building was
$15,500
• Sale of long-term investment for
$9,000 cash
Wages payable decreased $30,000
Unearned revenue increased
$53,000
Patent amortization expense was
$5,000
●
●
●
●
●
●
●
●
Using the indirect method, how much
was RM's net cash provided by
operating activities? (In other words,
what would RM Company show as its
net Cash Flow from Operations?)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5c7cfa95-b758-48d9-8089-1066176fbfed%2F79d4217c-157e-4f18-a9af-0e7c98a75a01%2F67ej1yl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:RM Company, a manufacturer, has
provided the following information
pertaining to its recent year of
operation:
Net Income = $390,000
Accounts payable increased
$33,000
Prepaid rent decreased $14,500
Depreciation expense was $44,000
Accounts receivable increased
$43,000
Gain on sale of building was
$15,500
• Sale of long-term investment for
$9,000 cash
Wages payable decreased $30,000
Unearned revenue increased
$53,000
Patent amortization expense was
$5,000
●
●
●
●
●
●
●
●
Using the indirect method, how much
was RM's net cash provided by
operating activities? (In other words,
what would RM Company show as its
net Cash Flow from Operations?)
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education