The accounting records of Baddour Company provided the data below. $4,680 6,100 460 Net loss Depreciation expense Increase in salaries payable Decrease in accounts receivable Increase in inventory Amortization of patent Reduction in discount on bonds 1,900 2,350 340 240 Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.)

The accounting records of Baddour Company provided the data below. $4,680 6,100 460 Net loss Depreciation expense Increase in salaries payable Decrease in accounts receivable Increase in inventory Amortization of patent Reduction in discount on bonds 1,900 2,350 340 240 Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.)

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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1n. Account
Sales Cost of goods sold Depreciation Other operating expenses Income tax Loss on sale of equipment Gain on sale of investment Net earnings and comprehensive income As at December 31 Cash Accounts receivable Inventory Equipment Less: accumulated depreciation Investment Total Accounts payable Income tax payable Bonds payable Common shares Retained earnings Total $193,800 25,400 76,100 43,800 3,000 (2,300) 20X2 $ 69,300 89,600 187,700 556,300 (231, 200) 54,700 $ 726,400 $ $510,000 339,800 $170, 200 20X1 $ 55,200 102, 600 175,400 475,400 (229,100) 79,000 $ 658,500 62,000 10,000 45,700 307, 200 301,500 $ 726,400 $ 658,500 $ 104,100 7,000 307, 200 240, 200 Additional information: During the year, equipment with an original cost of $99,800 was sold for cash.
The accounting records of EZ Company provided the data below. Net income $ 69,000 Depreciation expense 16,000 Increase in inventory 6,000 Decrease in salaries payable 4,500 Decrease in accounts receivable 8,000 Amortization of patent 1,200 Amortization of premium on bonds 8,900 Increase in accounts payable 13,000 Cash dividends paid 22,000 Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.)
A company reported net income of $250,000. Beginning balances in Accounts Recelvable and Accounts Payable were $20,000 and $21,000 respectively. Ending balances in these accounts were $10,500 and $29,000, respectively. Assuming that all relevant information has been presented, what is the company's net cash flows from operating activities? Multiple Cholce $259,500. $232,500. $267,500. $250,000.
Accounts receivable from sales transactions were $45,878 at the beginning of the year and $60,085 at the end of the year. Net income reported on the income statement for the year was $139,730. Exclusive of the effect of other adjustments, what is the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method?
Accounts receivable from sales transactions were $45,331 at the beginning of the year and $66,395 at the end of the year. Net income reported on the income statement for the year was $118,325. 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 Oa. $21,064 Ob. $118,325 Oc. $97,261 Od. $139,389
NOTE: Using INDIRECT Method (Cash Flow)
The accounting records of Hampton Company provided the data below ($ in 000s). $17,300 Net income Depreciation expense 7,800 4,000 Increase in accounts receivable Decrease in inventory 5,500 Decrease in prepaid insurance Decrease in salaries payable Increase in interest payable 1,200 2,700 800 Required: Prepare a reconciliation of net income to net cash flows from operating activities.
Wiley Company's income statement for Year 2 follows: $ 2,800 1,100 1,700 400 1,300 520 $ 780 Sales Cost of goods sold Gross margin Selling and administrative expenses Income before taxes Income taxes Net income The company's selling and administrative expense for Year 2 includes $74 of depreciation expense. Selected balance sheet accounts for Wiley at the end of Years 1 and 2 are as follows: Current Assets Accounts receivable Inventory Prepaid expenses Current Liabilities Accounts payable Accrued liabilities Income taxes payable Year 2 $ 210 $166 $ 34 $ 114 $ 5 $ 118 Year 1 $ 255 $ 198 $26 $85 $ 30 $70 Required: 1. Using the direct method, convert the company's income statement to a cash basis. 2. Assume that during Year 2 Wiley had a $13,000 gain on sale of investments and a $4,000 loss on the sale of equipment. Would these transactions affect the computation in (1) above?
Hassan Corporation reports the following information: Net income OMR 500,000 Depreciation expense 140,000 Decrease in accounts receivable 60,000 Hasaan should report cash provided by operating activities of Select one: O a. OMR 300,000. O b. OMR 580,000. c. OMR 420,000. d. OMR 700,000.
The following items appeared on the financial statements of Washington Company. Line Item Description Amount Accounts receivable, January 1 $13,395 Accounts receivable, December 31 6,901 Accounts payable, January 1 5,645 Accounts payable, December 31 8,721 Inventory, January 1 6,686 Inventory, December 31 16,260 Sales 73,071 Cost of goods sold 34,443 Washington Company uses the direct method to report cash flows from (used for) operating activities. Assume that all accounts payable are owed to merchandise suppliers. Cash payments for merchandise were
E Print Item What adjustment(s) should be made to reconcile net income to net cash flows from operating activities (indirect method) considering the following balances in current assets? For those boxes in which you must enter subtractive or negative numbers use a minus sign. Accounts receivable, beginning of year $29,000 Accounts receivable, end of year 35,000 Prepaid insurance, beginning of year 20,000 Prepaid insurance, end of year 18,000 Accounts Receivable Prepaid Insurance Total %24