The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plam equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities. Which of the following is correct regarding the operating activities section of the statement of cash flows? Multiple Choice The change in Accounts Receivable will be subtracted from net income: The change in Inventory will be added to net income The change in Accounts Receivable will be added to net income: The change in Inventory will be subtracted from net income The change in Accounts Receivable will be added to net income: The change in Inventory will be added to net income The change in Accounts Receivable will be subtracted from net income: The change in Inventory will be subtracted from net income

The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plam equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities. Which of the following is correct regarding the operating activities section of the statement of cash flows? Multiple Choice The change in Accounts Receivable will be subtracted from net income: The change in Inventory will be added to net income The change in Accounts Receivable will be added to net income: The change in Inventory will be subtracted from net income The change in Accounts Receivable will be added to net income: The change in Inventory will be added to net income The change in Accounts Receivable will be subtracted from net income: The change in Inventory will be subtracted from net income

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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When using the indirect method of preparing a statement of cash flows, how will a $23,500 increase in accounts payable affect net income in the operating activities section of the statement of cash flows and why? a. There will be no effect, as this is a non-cash transaction/entry b. Increases in current liabilities are added to net income, so it will increase net cash by $23,500 C. Increases in current liabilities are deducted from net income, so it will decrease net cash by $23,500 d. There is no effect, as accounts receivable are on the balance sheet, not the income statement
Which of the following transactions would not appear on a statement of cash flows prepared by the direct method? A net loss from operations O The payment of cash dividends that were declared last year The amount paid to acquire treasury stock Payment of last year's income tax liability
State the section(s) of the statement of cash flows prepared by the indirect method (operating activities, investing activities, financing activities, or not reported) and the amount that would be reported for each of the following transactions: Note: Only consider the cash component of each transaction. Note: If an item should not be reported, select "Not reported" and leave amount cell blank or enter "0". a. Received $120,000 from the sale of land costing $70,000. operatin financing investing not reported $fill in the blank 2 fill in blank $fill in the blank 4 b. Purchased investments for $75,000. fill in blank $fill in the blank 6 c. Declared $35,000 cash dividends on stock. Dividends of $5,000 were payable at the beginning of the year, and $6,000 were payable at the end of the year. fill in blank $fill in the blank 8 d. Acquired equipment for $64,000 cash. fill in blank $fill in the blank 10 e. Declared and issued 100 shares of $20 par common stock as…
125. accountig
A company uses the indirect method to prepare the statement of cash flows. It presents the following data on its financial statements End of this year End of prior year $145,000 $97,000 560,000 830,000 75,000 86,000 13,000 49.000 Accounts receivable Cost of goods sold Sales revenue Accounts payable Inventory Salary payable Salary expense *Relates solely to the acquisition of inventory What will appear in the operating activities section related to accounts receivable? ⒸA. The increase of $48,000 will be subtracted from net income OB. The increase of $48,000 will be added to sales revenue. OC. The increase of $48,000 will be subtracted from sales revenue OD. The increase of $48,000 will be added to net income 67,000 105,000 10,000 45,000
Kennedy, Inc. reported the following data: Net income Depreciation expense Loss on disposal of equipment Gain on sale of building Increase in accounts receivable Decrease in accounts payable 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. Cash flows from operating activities: $152,168 12,599 (10,151) 19,285 8,486 (3,847) Kennedy, Inc. Statement of Cash Flow Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: 0 000 0
Makena is a salaried, exempt employee with Caxkyat Stores. Makena is single with one dependent under 17 and earns $35,500 per year. Required: Complete the payroll register for the biweekly pay period ending March 11, 2022, with a pay date of March 16, 2022. Note: Round your dollar values to 2 decimal places. P/R End Date: Check Date: Name Makena Totals 03/11/2022 03/16/2022 Filing Status Dependents Hourly Rate or Period Wage M Company Name Number of Regular Hours \ Number of Overtime Hours Caxkyat Stores Commissions Regular Earnings 0.00 Overtime Earnings Gross Earnings $ 0.00
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1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year. (List cash outflows as negative amounts.) This will include operating, investing, and financing activities.
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.
Some transactions that don’t increase or decrease cash must be reported inconjunction with a statement of cash flows. What activity of this type did Targetreport during each of the three years presented? What are two other such activitiesthat some companies might report?