Income from operationsInterest expenseIncome before taxesIncome taxesNet incomeThe following additional data were provided:The net cash provided (used) by investing activities is456000$48000.$(288000).$240000.O $(352000).720003840001. Dividends for the year 2025 were $192000.2. During the year, equipment was sold for $240000. This equipment cost $352000 originally and had a book value of $288000 atthe time of sale. The loss on sale was incorrectly charged to cost of sales.3. All depreciation expense is in the selling expense category.96000$288000 Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise isanxious to have prepared is a statement of cash flows. Financial statements for 2025 are provided below.CashCOMPARATIVE BALANCE SHEETSAccounts receivableInventoryProperty, plant, and equipmentLess accumulated depreciationAccounts payableIncome taxes payableBonds payableCommon stockRetained earnings12/31/25$608000(320000)$408000360000384000288000$1440000$176000352000360000216000336000$144000012/31/24$960000(304000)$192000216000480000656000$1544000$96000392000600000216000240000$1544000

The following additional data were provided: 1. Dividends for the year 2025 were $192000. 2. During the year, equipment was sold for $240000. This equipment cost $352000 originally and had a book value of $288000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. The net cash provided (used) by investing activities is

The following additional data were provided: 1. Dividends for the year 2025 were $192000. 2. During the year, equipment was sold for $240000. This equipment cost $352000 originally and had a book value of $288000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. The net cash provided (used) by investing activities is

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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A company reports net income of $157,000. Included in net income is a gain on the sale of land of $16,000. A comparison of this year's and last year's balance sheets reveals an increase in accounts receivable of $27,000, an increase in inventory of $16,000, and a decrease in accounts payable of $47,00O. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities 2$
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Atkins Corporation has provided the following information for the year ended December 31, 2019:• The equipment account balance increased $200,000.• The equipment accumulated depreciation account increased $35,000.• Equipment costing $50,000 was sold during the year resulting in a $10,000 gain.• Depreciation expense on the equipment recorded during the year was $65,000. Which of the following statements is incorrect with respect to preparation of the statement of cash flows? Assume that the equipment purchase and sale resulted in cash flows. A. A $60,000 cash inflow is reported from the equipment sale. B. Using the indirect method, net income is increased by the $65,000 depreciation expense. C. Using the indirect method, net income is decreased by the $10,000 gain on the sale of the equipment. D. A $30,000 cash inflow is reported from the equipment sale.
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