E6-7. Statement of Cash Flows, Indirect Method. Tulsa Corporation provided you with the following informa-tion for the current year.Tulsa CorporationStatement of Net IncomeFor the Current Year EndedSales$45,700Depreciation Expense(1,800)Selling, General, and Administrative Expenses(21,000)Loss on Sale of Equipment(3,000)Other Income400Income before Taxes20,300Таx Expense(6,090)Net Income$14,210Changes in Balance Sheet AccountsAmountDecrease in Accounts Receivable$ 2,300Increase in Accounts Payable900Increase in Income Taxes Payable1,600Compute the net cash flow from operating activities under the indirect reporting format.

Introduction: Cash flow statements: All cash in and out flows are shown in cash flow statements. It…

Answered: Statement of Cash Flows, Indirect…

FINANCIAL ACCOUNTING

10th Edition

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Author:Libby

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Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in thousands) for Peach Computers. PEACH COMPUTERSIncome StatementFor the Year Ended December 31, 2021 Sales $ 380.0 Cost of goods sold (190.0 ) Gross margin 190.0 Salaries expense $ 43.0 Insurance expense 20.0 Depreciation expense 9.0 Loss on sale of land 7.0 79.0 Income before tax 111.0 Income tax expense (55.5 ) Net income $ 55.5 Reconciliation of Net IncomeTo Net Cash Flows from Operating Activities Net income $ 55.5 Adjustments for Noncash Effects Depreciation expense 9.0 Loss on sale of land 7.0 Changes in operating assets and liabilities: Decrease in accounts receivable 11.0 Increase in inventory (38.0 ) Decrease in accounts payable (23.0 ) Increase in salaries payable…
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
Prepare a statement of cash flow, using the statement below.
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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).
Cash Flow RatiosSpencer Company reports the following amounts in its annual financial statements: Cash flow from operating activities $90,000 Capital expenditures $59,500* Cash flow from investing activities (68,000) Average current assets 136,000 Cash flow from financing activities (8,500) Average current liabilities 102,000 Net income 42,500 Total assets 255,000 * This amount is a cash outflowa. Compute Spencer's free cash flow.b. Compute Spencer's operating-cash-flow-to-current-liabilities ratio.c. Compute Spencer's operating-cash-flow-to-capital-expenditures ratio. Round ratios to two decimal points. a. Free cash flow Answer b. Operating-cash-flow-to-current-liabilities ratio Answer c. Operating-cash-flow-to-current-expenditures ratio Answer
1.2 Hampton Company reports the following information for its recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data Sales $ 77,000 Accounts receivable increase $ 7,000 Expenses: Inventory decrease 3,000 Cost of goods sold 41,000 Salaries payable increase 800 Salaries expense 10,000 Depreciation expense 8,000 Net income $ 18,000 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.)
Using the Exhibit below, assume that the balance of Accounts Payable was $60,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Payable is $65,000 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 payable 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 disposal of…
Chew Corporation prepares its statement of cash flows using the indirect method of reporting operating activities. Net income for the 2018 fiscal year was $1,250,000. Depreciation expense of $140,000 was included withoperating expenses in the income statement. The following information describes the changes in current assets andliabilities other than cash:Increase in accounts receivable $152,000Decrease in inventories 108,000Decrease prepaid expenses 62,000Decrease in salaries payable 30,000Increase in income taxes payable 44,000Required:Calculate cash flows from operating activities for 2018.
Kela Corporation reports net income of $530,000 that includes depreciation expense of $74,000. Also, cash of $55,000 was borrowed on a 4-year note payable. Based on this data, total cash inflows from operating activities are Mutiple Choice S604.000 O $585,000 O $669.000. $456,000. Ps >>> Type here to search Ps 39% A d) O 99+ ブォ PISO F10 F1 F12 Insert CE T D G H. K アV MI Alt Ctri
Cash Flow RatiosSpencer Company reports the following amounts in its annual financial statements: Cash flow from operating activities $65,000 Capital expenditures $42,000* Cash flow from investing activities (48,000) Average current assets 96,000 Cash flow from financing activities (6,000) Average current liabilities 72,000 Net income 30,000 Total assets 180,000 * This amount is a cash outflowa. Compute Spencer's free cash flow.b. Compute Spencer's operating-cash-flow-to-current-liabilities ratio.c. Compute Spencer's operating-cash-flow-to-capital-expenditures ratio. Round ratios to two decimal points. a. Free cash flow Answer b. Operating-cash-flow-to-current-liabilities ratio Answer c. Operating-cash-flow-to-current-expenditures ratio Answer
Using the Exhibit below, assume that the balance of Accounts Payable was $50,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Payable is $35,000 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 payable 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 disposal of…

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