# Dauve Company Statement of Cash Flows (Partial)### For Year Ended December 31, 2016---## Operating Activities (Indirect Method):- **Net Income:** $[amount]- **Adjustment for noncash income items:** $[amount]- **Adjustments for cash flow effects from working capital items:** 1. **[Description]:** $[amount] 2. **[Description]:** $[amount] 3. **[Description]:** $[amount]- **Net Cash Provided by Operating Activities:** $[amount]---### Direct Method Instruction:2. By visual inspection, prepare the net cash flow from the operating activities section of Dauve’s 2016 statement of cash flows using the direct method. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments.## Operating Activities (Direct Method):- **Cash Inflows:** - **Net Cash Inflows from Operating Activities:** $[amount]- **Cash Outflows:** 1. **[Description]:** $[amount] 2. **[Description]:** $[amount] 3. **[Description]:** $[amount]- **Cash Outflows for Operating Activities:** $[amount]- **Net Cash Provided by Operating Activities:** $[amount]---### Explanation:This exercise involves preparing a partial statement of cash flows using both the indirect and direct methods. Each method provides a different perspective on cash flow from operating activities:- **Indirect Method:** Adjusts net income for non-cash transactions and changes in working capital.- **Direct Method:** Lists cash receipts and payments to calculate net cash flow from operations.Understanding both approaches helps in analyzing how operational activities impact cash flow differently depending on the method used. # Direct and Indirect Methods**Dauve Company reported the following condensed income statement for 2016:**- **Sales:** $100,000 - **Cost of goods sold:** ($58,000) - **Gross profit:** $42,000 **Operating expenses:**- Depreciation expense: $8,000 - Salaries expense: 12,000 (20,000) **Income before income taxes:** $22,000 **Income tax expense:** (6,600) **Net income:** $15,400 ---**During 2016, the following changes occurred in the company's current assets and current liabilities:**| | Increase (Decrease) ||------------------------------|---------------------|| Cash | $3,700 || Accounts receivable | (5,500) || Inventories | 8,900 || Accounts payable (purchases) | (4,600) || Salaries payable | 2,800 |---**Required:**1. By visual inspection, prepare the net cash flow from the operating activities section of Dauve's 2016 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash.

A cash flow statement is a financial statement that summarizes all cash inflows received by a…

Answered: Statement of Cash Flows (Partial) For…

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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Question Content Area The following information is available from the current period financial statements: Net income $102,978 Depreciation expense 26,870 Increase in accounts receivable 15,293 Decrease in accounts payable (29,031) The net cash flows from operating activities using the indirect method is a. $174,172 b. $85,524 c. $102,978 d. $31,784
Calculate the free Cash Flow ratio
Compute KLT's net cash provided by operating activities-indirect method. Complete the partial Statement of Cash Flows. (Use a minus sign or parentheses for amounts that result in a decrease in cash.) KLT Equipment, Inc. Statement of Cash Flows (Partial) Year Ended December 31, 2024 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Net Cash Provided by (Used for) Operating Activities
Use the following excerpts from Yardley Company's financial information. Dec. 31, 2018 Dec. 31, 2017 Cash $245,100 $225,000 Accounts Receivable 38,350 35,350 Merchandise Inventory 59,900 58,700 Land 165,000 65,000 Plant Assets 170,000 170,000 Accumulated Depreciation (49,000) (37,000) Total Assets $629,350 $517,050 Accounts Payable $29,100 $27,300 15,500 12,000 Accured Liabilities 45,000 20,000 Common Stock 539,750 457,750 Retained Earnings $629,350 $517,050 Total Liabilities and Equity Additional Information: $95,000 Net Income for 2018 12,000 Depreciation Expense for 2018 100,000 Land Purchased, for Cash 25,000 Stock Issued in Exchange for Cash, At Pat Value 13,000 Dividend Declared and Paid Prepare a statement of cash flows (indirect method) for the year 2018. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments. Yardley Company
Prepare the cash flows from operating activities section of the company’s 2018 statement of cash flows using the indirect method
Asap The following information is available from the current period financial statements: Net income $126,307 Depreciation expense 23,648 Increase in accounts receivable 16,473 Decrease in accounts payable (19,595) The net cash flows from operating activities using the indirect method is a.$126,307 b.$113,887 c.$66,591 d.$186,023
Statement of Cash Flows The following is a list of the items for L Company's 2019 statement of cash flows: a. depreciation expense, $4,100 g. proceeds from issuance of note, $6,100 b. proceeds from sale of land, $5,500 h. gain on sale of land, $1,900 c. payment of dividends, $5,000 i. payment for purchase of building, $14,000 d. net income, $8,000 j. increase in accounts receivable, $2,800 e. conversion of bonds to common stock, $7,000 k. ending cash balance, $14,000 f. increase in accounts payable, $3,000 Required: Prepare the statement of cash flows. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments. L COMPANY Statement of Cash Flows For Year Ended December 31, 2019 Operating Activities: $fill in the blank 2 Adjustment for noncash income items: fill in the blank 4 fill in the blank 6 Adjustments for cash flow effectsfrom working capital items: fill in the blank 8…
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 $
COTB MC Qu. 15-48 (Algo) Assume that a company provided... Assume that a company provided the following statement of cash flows (all sales are on account): Operating activities: Net income Adjustments to convert net income to a cash basis: Depreciation Decrease in accounts receivable Increase in inventory Increase in accounts payable Net cash provided by (used in) operating activities Investing activities: Additions to property, plant, & equipment Net cash provided by (used in) investing activities Financing activities: Issuance of common stock Cash dividends paid Net cash provided by (used in) financing activities Net increase in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents How much is the company's free cash flow? $ 15 2 (10) 4 (40) 5 (16) $ 47 11 58 (40) (11) 7 6 $ 13
In 20--, the annual salaries paid to each of the officers of Abrew, Inc., follow. The officers are paid semimonthly on the 15th and the last day of the month. Compute the FICA taxes to be withheld from each officer's pay on (a) November 15 and (b) December 31. Round your answers to the nearest cent. If an amount is zero, enter "0". a. November 15 Name and Title AnnualSalary OASDI TaxableEarnings OASDI Tax HI TaxableEarnings HI Tax Hanks, Timothy, President $189,600 fill in the blank 1 of 24$ fill in the blank 2 of 24$ fill in the blank 3 of 24$ fill in the blank 4 of 24$ Grath, John, VP Finance 165,600 fill in the blank 5 of 24$ fill in the blank 6 of 24$ fill in the blank 7 of 24$ fill in the blank 8 of 24$ James, Sally, VP Sales 69,600 fill in the blank 9 of 24$ fill in the blank 10 of 24$ fill in the blank 11 of 24$ fill in the blank 12 of 24$ Kimmel, Joan, VP Mfg. 54,000 fill in the blank 13 of 24$ fill in the blank 14 of 24$ fill in the blank 15 of 24$ fill in the…
The net income reported on an income statement for the current year was $63,000. Depreciation recorded on fixed assets for the year was $24,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below. 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. End Beginning Cash $65,000 $70,000 Accounts receivable (net) 70,000 57,000 Inventories 86,000 102,000 Prepaid expenses 4,000 4,500 Accounts payable (merchandise creditors) 51,000 58,000 Cash dividends payable 4,500 6,500 Salaries payable 6,000 7,500
Cash Flows from Operating Activities—Indirect Method The income statement disclosed the following items for the year: Depreciation expense $53,700 Gain on disposal of equipment 31,310 Net income 391,700 The changes in the current asset and liability accounts for the year are as follows: Increase(Decrease) Accounts receivable $8,360 Inventory (4,760) Prepaid insurance (1,780) Accounts payable (5,670) Income taxes payable 1,780 Dividends payable 1,250 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. Statement of Cash Flows (partial) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on disposal of equipment Changes in current operating assets and…

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