The A Company uses the direct method in determining net cash provided by operating activities. During the year operating expenses were P260,000, prepaid expenses increased P20,000, and accrued expenses payable increased P30,000. Cash payments for operating expenses were:

The A Company uses the direct method in determining net cash provided by operating activities. During the year operating expenses were P260,000, prepaid expenses increased P20,000, and accrued expenses payable increased P30,000. Cash payments for operating expenses were:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: JSW Corp. reported net income on the income statement for the current year of $59,000. Depreciation…

A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

Q: ABC Company had the following cash transactions during the year: Cash collections from customers…

A: A Cash flow statement has three different categories: • Operating activities: For this net profit…

Q: Analysis reveals that a company had a net increase in cash of $21,540 for the current year. Net cash…

A: The cash flow statement provides details about the cash flows generated by the company from…

Q: Kennedy, Inc. reported the following data: Net income $140,711 Depreciation expense 16,055 Loss on…

A: The cash flow statement helps to find net cash flow from various business activities like operating,…

Q: Analysis reveals that a company had a net decrease in cash of RM4,000 for the current year. Net cash…

A: Formula: Beginning cash balance = year-end cash balance - net decrease in cash

Q: Teal Ltd. reported 2022 net income of HK$157,040. During 2022, accounts receivable increased by…

A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…

Q: Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the…

A: Statement of cash flows: It is one of the financial statement that shows the cash and cash…

Q: Accounts receivable from sales transactions were $46,255 at the beginning of the year and $67,957 at…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Kennedy, Inc. reported the following data: Net income $190,614 Depreciation expense 12,841 Loss on…

A: Given that, Net income $190,614 Depreciation expense 12,841 Loss on disposal of equipment…

Q: The following information is available for Shamrock Company. Raw materials inventory Work in process…

A: Cost of goods sold means the cost incurred on the goods which has been sold out. Cost of goods sold…

Q: Determining Cash Flows from (Used for) Operating Activities Yeoman Inc. reported the following…

A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…

Q: Marin Company's accounts receivable arising from sales to customers amounted to $170000 and $149000…

A: Cash flow from operating activities indicates the amount of revenue generated from selling of goods…

Q: Required information [The following information applies to the questions displayed below.] Lansing…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: am.123.

A: The operating activities section of the statement of cash flows using the indirect method is…

Q: Hampton Company reports the following information for its recent calendar year. Selected Year-End…

A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…

Q: Arundel Company disclosed the following information for its recent calendar year. $ 100,000 Selected…

A: Cash flow from operating activities is the section of a company’s cash flow statement that…

Q: Kela Corporation reports net income of $550,000 that includes depreciation expense of $77,000. Also,…

A: Note: Amount borrowed through notes payable will be included under cash flow from financing…

Q: Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows,…

A: Under indirect method of cash flow net income that is determined using accrual method of accounting…

Q: If Accounts receivable decrease by R.O.50,000 Income reported on the income statement for the year…

Q: The cash balance of Muscat Company is 28000 OMR at the beginning of the year. The cash flows during…

A: Cashflow at the end of the year is equal to the Cash at the beginning with deduction of outflows and…

Q: Hogan Company uses the direct method in determining net cash provided by operating activities,…

A: Cash payment for operating expenses means the amount paid during a period for the operating…

Q: The net income reported on an income statement for the current year was $63,000. Depreciation…

A: Under the indirect method of preparing cash flow from operating activities part of the statement of…

Q: Net income was $106,794. Accounts Payable increased by $19,324 while Accounts Receivable increased…

A: net cash provided by operating activitie = net income + increase in accounts payable - increase in…

Q: River Company began the accounting period with a $62,000 debit balance in its Account Recievable…

A: Collection from Account Receivable = Beginning Account Receivable + Revenue on Account - Ending…

Q: Rogers Company reported net income of $36,223 for the year. During the year, accounts receivable…

A: Cash flow from operating statement is one of activities included in the statement of cash flow,…

Q: The cash balance of Saadah Company is 32700 OMR at the beginning of the year. The cash flows during…

A: Increase (decrease) in cash = Operating cash inflow - Investing outflow + financing cash inflow…

Q: In preparing a company's statement of cash flows for the most recent year using the indirect method,…

A: Operating activities are all the steps a business does to continuously market its goods and…

Q: FDN Company shows the following amounts in its Statement of Cash Flows for the y Net cash used in…

A: In Statement of Cash Flow the closing balance of cash or cash equivalents will be calculated after…

Q: Onze Douze Company had the following cash flows during the current year: What is the net cash…

A: Lets understand the basics. Cashflow statement is divided into three main activities which are, (1)…

Q: Staley Inc. reported the following data: Net income $211,000 Depreciation expense 58,400 Loss on…

A: Cash Flows from Operating Activities gives us the cash generated from the core or regular activities…

Q: Bainbridge Company uses the direct method in determining net cash provided by operating activities.…

A: Cash payments for income taxes = Beginning Income taxes payable +Income tax expense -Ending Income…

Q: Accounts receivable from sales transactions were $45,634 at the beginning of the year and $60,027 at…

A: The objective of this question is to calculate the net cash flows from operating activities using…

Q: The current period statement of cash flows includes the following: Cash balance at the beginning of…

A: A cash flow statement is a type of financial statement that shows how much money comes in and goes…

Q: ed the following items in its year-end financial statements: ditures ayments baid 3 ayments…

A: When indirect method is applied for calcuating cash flow from operating activities, a supplement…

Q: Last year Cucumber Company reported a cost of goods sold of $30,000. Inventories decreased by $7,000…

A: given that, cost of goods sold of $30,000 Inventories decreased by $7,000 accounts payable decreased…

Q: Cemptex Corporation prepares its statement of cash flows using the indirect method to report…

Q: Staley Inc. reported the following data: Net income $308,300 Depreciation expense 72,800 Loss on…

A: Cash Flow Statement is a statement that shows the analysis of cash inflows & outflows from…

Q: Using the direct method of reporting cash flows from operating activities, cash paid for merchandise…

A: Cost of merchandise purchased =cost of merchandise sold +Closing Merchandise inventories -…

Q: Kennedy, Inc. reported the following data: Net income $125,121 Depreciation expense 14,053 Loss on…

A: By reconciling net income to cash flow, any activity that results in changing net income but doesn't…

Q: An increase in the Prepaid Expenses account of $1,000 over the course of a year would be shown on…

A: Under the indirect method of cash flow statement: Decrease in current assets or increase in current…

Q: • It is correct to say that Cold Goose's net inflows and outflows of cash at the end of Years 1 and…

A: In accounting, net inflow and outflow of cash at the end of a period are not necessarily equal at…

Q: Kennedy, Inc. reported the following data: Net income $171,757 Depreciation expense 14,794 Loss on…

A: Cash flow statement provided information about the cash inflows and cash outflows of the company.…

Q: Accounts receivable from sales transactions were $45,582 at the beginning of the year and $68,677 at…

A: Increase or decrease=Accounts receivable in the beginning-Accounts receivable in the…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Explanation:

VIEW

Answer:

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Accounts receivable from sales transactions were $49,174 at the beginning of the year and $63,557 at the end of the year. Net income reported on the income statement for the year was $128,168. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is Oa. $14,383 Ob. $142,551 Oc. $113,785 Od. $128,168
Sheffield Company reported net income of $73000 for the year. During the year, accounts receivable decreased by $7500, accounts payable increased by $4500 and depreciation expense of $5500 was recorded. Using the indirect method, net cash provided by operating activities for the year is? a. $90500. b. $67500. c. $61000. d. $70500.
Situation A: A company has revenues of P200,000 and operating expenses of P110,000 in its 1st year of operations, 2019. For the purpose ignore income taxes.Accounts receivable and accounts payable at year end were P71,000 and P29,000, respectively. Assume that the accounts payable related to operating expenses. Using the direct method, compute net cash provided by operating activities. Situation B:Cost of goods sold were at P310,000 and operating expenses (exclusive of depreciation) P230,000. The comparative balance sheet for the year shows that inventory increased P26,000, prepaid expenses decreased P8,000, accounts payable (related to merchandise) decreased P17,000, and accrued expenses payable increased P11,000. Compute (a) cash payments to suppliers and (b) cash payments for operating expenses.
If Accounts receivable increase by R.O.100,000. Income reported on the income statement for the year was R.O.2,800,000. Excluding of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is
Kennedy, Inc. reported the following data: Net income $131,828 Depreciation expense 15,000 Loss on disposal of equipment (8,838) Gain on sale of building 18,003 Increase in accounts receivable 8,110 Decrease in accounts payable (2,907) 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 outflows, a decrease in cash, cash payments, or any negative adjustments. Kennedy, Inc. Statement of Cash Flow 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
Accounts receivable arising from trade transactions amounted to $44,000 and $53,000 at the beginning and end of the year, respectively. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is: a. $105,000 b. $114,000 c. $96,000 d. $158,000
Accounts receivable arising from sales to customers amounted to $82000 and $77000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $282000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is $282000. O $205000. O $287000. O $276000.
Accounts receivable from sales transactions were $45,634 at the beginning of the year and $60,027 at the end of the year. Net income reported on the income statement for the year was $126,710. Exclusive of the effect of other adjustments, the net cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would be a. $126,710 b. $112,317 c. $14,393 d. $141,103
Kennedy, Inc. reported the following data: Net income $139,775 Depreciation expense 14,898 Loss on disposal of equipment (10,435) Gain on sale of building 19,944 Increase in accounts receivable 8,818 Decrease in accounts payable (3,307) 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 outflows, a decrease in cash, cash payments, or any negative adjustments. Kennedy, Inc. Statement of Cash Flow Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense Loss on disposal of equipment Gain on sale of building Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in accounts payable Net cash flow from operating activities
Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Arundel Company disclosed the following information for its recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data Revenues $ 80,000 Accounts receivable decrease $ 25,000 Expenses: Purchased a machine for cash 18,000 Salaries expense 71,000 Salaries payable increase 23,000 Utilities expense 31,000 Interest payable decrease 16,000 Depreciation expense 29,800 Interest expense 7,200 Net loss $ (59,000)
The cost of goods sold during the year was $281200. Inventory increased by $9000 during the year and accounts payable decreased by $14100 during the year. Using the direct method of reporting cash flows from operating activities, cash payments for inventory total?
Yeoman Inc. reported the following data: Net income $170,000 Depreciation expense 29,000 Loss on disposal of equipment 11,850 Increase in accounts receivable 10,490 Increase in accounts payable 5,430 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.