Software Distributors reports net income of $52,000. Included in that number is depreciation expense of $8,500 and a loss on the sale of land of $4,700. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $22,000, a decrease in inventory of $13,500, and an increase in accounts payable of $42,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (List cash outflows and any lecrease in cash as negative amounts.) SOFTWARE DISTRIBUTORS Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities

Software Distributors reports net income of $52,000. Included in that number is depreciation expense of $8,500 and a loss on the sale of land of $4,700. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $22,000, a decrease in inventory of $13,500, and an increase in accounts payable of $42,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (List cash outflows and any lecrease in cash as negative amounts.) SOFTWARE DISTRIBUTORS Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.3.2MBA

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Exercise 11-6 (Algo) Calculate operating activities-indirect method (LO11-3) Gemstone Suppliers reports net income of $157,000. Included in net income is a gain on the sale of land of $16,000. A comparison of this year's and last year's balance sheets reveals an increase in accounts receivable of $27,000, an increase in inventory of $16,000, and a decrease in accounts payable of $47,000. Required: Prepare the 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: GEMSTONE SUPPLIERS Statement of Cash Flows (partial) Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Prev 1 of 2 ⠀ Next >
Problem 9-13 (IAA) Corazon Company provided the following information for the current year: Sales Sales returns and allowances Cost of goods sold Utilities expense Interest revenue Income tax expense Casualty loss due to earthquake Finance cost Salaries expense Loss on sale of investments 7,000,000 100,000 2,800,000 1,000,000 150,000 800,000 50,000 200,000 600,000 50,000 What amount should be reported as income from continuing operations? a. 1,550,000 b. 1,600,000 c. 2,350,000 d. 1,400,000
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Financial statement data for years ending December 31 for Davenport Company follow: Year 2 Year 1 Sales $1,668,000 $1,125,000 Fixed assets: Beginning of year End of year 670,000 580,000 720,000 670,000 a. Determine the fixed asset turnover ratio for Year 1 and Year 2. b. Does the change in the fixed asset turnover ratio from Year 1 to Year 2 indicate a favorable or an unfavorable change?
The income statement disclosed the following items for the year: Depreciation expense $40,700 Gain on disposal of equipment 23,760 Net income 254,700 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $6,340 Inventory (3,610) Prepaid insurance (1,350) Accounts payable (4,300) Income taxes payable 1,350 Dividends payable 950 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Net cash flows from operating activities b. Why is net cash flows from operating activities different than net income? Cash flows…
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The comparative balance sheets and income statements for Baird Company follow: Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Balance Sheets As of December 31 Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 $34,640 (13,730) Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income 20,910 (3,544) 17 366 Year 2 $24,724 1,800 6, 206 17,733 (9,935) 17,632 $58,160 $2,482 2,936 18,900 33,842 $58,160 Year 1 $2,823 1,080 5,818 42,083 (18,902) 11,322 $44, 224 $4,009 6,711 8,500 25,004 $44,224
The income statement disclosed the following items for the year: Depreciation expense $53,200 Gain on disposal of equipment 31,010 Net income 419,900 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $8,280 Inventory (4,710) Prepaid insurance (1,770) Accounts payable (5,610) Income taxes payable 1,770 Dividends payable 1,240 a. 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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fill out the missing blank Billy’s BBQ reported sales of $750,000 and net income of $29,500. Billy’s also reported ending total assets of $497,000 and beginning total assets of $390,000. Required: Calculate the return on assets, the profit margin, and the asset turnover ratio for Billy's BBQ.
The income statement disclosed the following items for the year: Line Item Description Amount Depreciation expense $43,900 Gain on disposal of equipment 25,610 Net income 292,200 The changes in the current asset and liability accounts for the year are as follows: Line Item Description Increase (Decrease) Accounts receivable $6,840 Inventory (3,890) Prepaid insurance (1,460) Accounts payable (4,640) Income taxes payable 1,460 Dividends payable 1,020 Question Content Area a. Prepare the "Cash flows from (used for) 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. blankStatement of Cash Flows (partial) Line Item Description Amount Amount Cash flows from (used for) operatingactivities: $Net income Adjustments to reconcile net incometo net cash flows from (used for) operating…