Salud Company reports the following information. Use the indirect method to prepare the operating ac-tivities section of its statement of cash flows for the year ended December 31.Selected Annual Income Statement DataNet income..Depreciation expenseGain on sale of machinery .Selected Year-End Balance Sheet Data$400,000Accounts receivable increase. .$40,000Prepaid expenses decrease...Accounts payable increase.Wages payable decrease80,00012,00020,0006,0002,000

Statement of cash flows: Cash flow statement is also known as statement of cash flows. It is a…

Answered: Salud Company reports the following…

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 54.
Using the Exhibit below, assume that the balance of Accounts Receivable was $61,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Receivable is $62,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts receivable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on…
Statement of Cash Flows (Indirect Method)The Wolff Company's income statement and comparative balance sheets at December 31 of the current year and the previous year are shown below: WOLFF COMPANYIncome StatementFor the Year Ended December 31 Sales Revenue $825,500 Cost of Goods Sold $559,000 Wages Expense 111,800 Insurance Expense 10,400 Depreciation Expense 22,100 Interest Expense 11,700 Income Tax Expense 37,700 752,700 Net Income $72,800 WOLFF COMPANYBalance Sheets Dec. 31, Current Year Dec. 31, Previous Year Assets Cash $14,300 $6,500 Accounts Receivable 53,300 41,600 Inventory 117,000 78,000 Prepaid Insurance 6,500 9,100 Plant Assets 325,000 253,500 Accumulated Depreciation (88,400) (66,300) Total Assets $427,700 $322,400 Liabilities and Stockholders' Equity Accounts Payable $9,100 $13,000 Wages Payable 11,700 7,800 Income Tax Payable 9,100 10,400 Bonds Payable 169,000 97,500 Common Stock…
What is the net cash at year-end?
A company uses the indirect method to prepare the statement of cash flows. It presents the following data on its financial statements End of this year End of prior year $145,000 $97,000 560,000 830,000 75,000 86,000 13,000 49.000 Accounts receivable Cost of goods sold Sales revenue Accounts payable Inventory Salary payable Salary expense *Relates solely to the acquisition of inventory What will appear in the operating activities section related to accounts receivable? ⒸA. The increase of $48,000 will be subtracted from net income OB. The increase of $48,000 will be added to sales revenue. OC. The increase of $48,000 will be subtracted from sales revenue OD. The increase of $48,000 will be added to net income 67,000 105,000 10,000 45,000
The income statement for Rhino Company for the current year ended June 30 and balances of selected accounts at the beginning and the end of the year are as follows: Please see the attachment for details: Prepare the Cash flows from operating activities section of the statement of cash flows, using the direct method.
The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following: a. If sales for the current year were $375,000 and accounts receivable increased by $29,000 during the year, what was the amount of cash received from customers?$fill in the blank 1 b. If income tax expense for the current year was $39,000 and income tax payable decreased by $21,000 during the year, what was the amount of cash payments for income tax?$fill in the blank 2
Entity L reported net income of $125,000 for the current year and uses the indirect method to report operating activities cash flow. Accounts Receivable increased by $14,000 during the year. Choose the appropriate category on the statement of cash flows to report the increase in Accounts Receivable. Cash Flows From Operating Activities-Add to Net Income Cash Flows From Operating Activities-Deduct from Net Income Cash Flows From Investing Activities Cash Flows From Financing Activities Non-cash
Use the following information for VPI Co. to prepare a statement of cash flows for the year ended December 31 using the indirect method. Cash balance at prior year-end. . . . . . . . . . . . . . $40,000 Gain on sale of machinery. . . . . . . . . . . . . . . . . . $ 2,000 P2 P3 Increase in inventory. . . . . . . . . . . . . . . . . . . . . . 5,000 Cash received from sale of machinery. . . . . . . . 9,500 Depreciation expense . . . . . . . . . . . . . . . . . . . . . 4,000 Increase in accounts payable. . . . . . . . . . . . . . . 1,500 Cash received from issuing stock. . . . . . . . . . . . 8,000 Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,000 Cash paid for dividends. . . . . . . . . . . . . . . . . . . . 1,000 Decrease in accounts receivable . . . . . . . . . . . . 3,000
In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was $ 56,500 Accounts payable decreased by 22,500 Accounts receivable increased by 29,500 Inventories increased by 9,500 Cash dividends paid were 14,900 Depreciation expense was 24,500 Net cash provided by operating activities was:
Selected data derived from the income statement and balance sheet of National Beverage Co. for a recent year are as follows: Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method for National Beverage Co. Interpret your results in part (a).
Macrosoft Company reports net income of $73,000. The accounting records reveal depreciation expense of $88,000 as well as increases in prepaid rent, accounts payable, and income tax payable of $68,000, 11,000, and $22,000, respectively Prepare the operating activities section of Macrosoft's statement of cash flows using the indirect method(List cash outflows and any decrease in cash as negative amounts.

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