The Income statement disclosed the following items for the current year: Depreciation expense $36,000 Gain on disposal of equipment 21,000 Net income 317,500 Balances of the current assets and current liabilities accounts changed between December 31, last year, and December 31, this year, as follows: Increase in accounts receivable $5,600 Decrease in inventory 3,200 Decrease in prepaid insurance 1,200 Decrease in account payable 3,800 Increase in income taxes payable 1,200 Increase in dividends payable 850 Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cas payments, decreases in cash, or any negative adjustments. Operating Activities Section Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities:

The Income statement disclosed the following items for the current year: Depreciation expense $36,000 Gain on disposal of equipment 21,000 Net income 317,500 Balances of the current assets and current liabilities accounts changed between December 31, last year, and December 31, this year, as follows: Increase in accounts receivable $5,600 Decrease in inventory 3,200 Decrease in prepaid insurance 1,200 Decrease in account payable 3,800 Increase in income taxes payable 1,200 Increase in dividends payable 850 Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cas payments, decreases in cash, or any negative adjustments. Operating Activities Section Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The income statement disclosed the following items for the year: Depreciation expense $40,700 Gain on disposal of equipment 23,760 Net income 254,700 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $6,340 Inventory (3,610) Prepaid insurance (1,350) Accounts payable (4,300) Income taxes payable 1,350 Dividends payable 950 a. 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. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Net cash flows from operating activities b. Why is net cash flows from operating activities different than net income? Cash flows…
The income statement disclosed the following items for the year: Depreciation expense $57,400 Gain on disposal of equipment 33,510 Net income 494,300 The changes in the current asset and liability accounts for the year are as follows: Increase(Decrease) Accounts receivable $8,950 Inventory (5,090) Prepaid insurance (1,910) Accounts payable (6,070) Income taxes payable 1,910 Dividends payable 1,340 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 outflows, cash payments, decreases in cash, or any negative adjustments.
Cash Flows from (Used for) Operating Activities The income statement disclosed the following items for the year: Depreciation expense Gain on disposal of equipment Net income The changes in the current asset and liability accounts for the year are as follows: Accounts receivable Inventory Prepaid insurance Accounts payable Income taxes payable Dividends payable Increase (Decrease) $5,190 (2,950) (1,110) (3,520) 1,110 780 $33,300 19,440 225,100 a. 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. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: 27 Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Net cash flows from operating activities b. Why is net cash flows from operating…
LEKTOL LTD. reported income tax expense for the year of $4 million. Interest payable decreased by $1 million. How much cash did the company pay income tax during the year? a. None of the above. b. $4 million. c. $3 million. d. $5 million. Clear my choice Non-current assets (long-term, long-lived assets): assets not expected to be sold or used up within one year or one operating cycle of the business, whichever is shorter. a. True O b. False
The net income reported on the income statement for the current year was $259000. Depreciation was $56000. Accounts receivable and inventories decreased by $5000 and $16000, respectively. Prepaid expenses and accounts payable increased, respectively, by $500 and $15000. Investments were sold at a loss of $21700. How much cash was provided by operating activities?
Cash Flows from (Used for) Operating Activities The income statement disclosed the following items for the year: Depreciation expense Gain on disposal of equipment Net income The changes in the current asset and liability accounts for the year are as follows: Accounts receivable Inventory Prepaid insurance Accounts payable Income taxes payable Dividends payable Increase (Decrease) $5,700 (3,240) (1,220) (3,860) 1,220 850 $36,600 21,330 218,400 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Us minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
The net income reported on the income statement for the current year was $255000. Depreciation was $39600. Account receivable and inventories decreased by $12300 and $35300, respectively. Prepaid expenses and accounts payable increased, respectively, by $1200 and $7600. How much cash was provided by operating activities? $305700 O $321100 $348600 O $333400
pays' cash on hand Financial statement data for years ending December 31 for Newton Company follow: 20Y9 20Y8 Cash (end of year) $25,538 $24,078 Short-term investments (end of year) 8,260 9,480 Operating expenses 60,135 63,465 Depreciation expense 13,050 12,000 Determine the days' cash on hand for 20Y8 and 20Y9. Assume 365 days in a year. Days' Cash on Hand 20Y8: 20Y9: days days
profit of $185,500 after charging depreciation of $31,200. During that year, trade payables increased by $26,600 and inventory increased by $40,300. There was no change to trade receivables. Assuming that no other factors affected it, the cash generated from operations would have been: 149800 283600 None of above 203000
Days' cash on hand Financial statement data for years ending December 31 for Newton Company follow: 20Y9 20Y8 Cash (end of year) $24,970 $24,386 Short-term investments (end of year) 8,280 9,410 Operating expenses 58,775 62,830 Depreciation expense 13,150 11,000 Determine the days’ cash on hand for 20Y8 and 20Y9. Assume 365 days in a year.
The year-end financial statements for North Railway report the following information: 0.46 0.41 1.74 (In millions) 0.25 Revenues Year ended December 31, Property and equipment, net Total assets Year 2 Year 1 The annual property, plant, and equipment turnover (PPET) is: $15,095 $21,967 61,250 59,510 84,122 81,703
Rogers Company reported net income of $47,097 for the year. During the year, accounts receivable increased by $5,480, accounts payable decreased by $4,933 and depreciation expense of $76,852 was recorded. Net cash flows from operating activities for the year is a. $124,496 b. $113,536 c. $47,097 d. $134,362