The net income reported on the income statement for the current year was $210,000. Depreciation recorded on equipment and a building amount to $62,500 for the year. Balances of the current asset and current liabilities accounts at thebeginning and end of the year are as follows:End of Year Beginning of YearCash$56,000$59,500Accounts receivable (net)71,00073,400Inventories140,000126,500Prepaid expenses7,8008,400Accounts payable (merchandise creditors)Salaries payableRequired:62,6009,00066,4008,250a. Prepare the operating activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.Operating Activities SectionLine Item DescriptionCash 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 activitiesAmount Amountb. If the direct method had been used, would the net cash flows from operating activities have been the same?

Indirect Method for Cash Flows from Operating ActivitiesGiven:Net income for the year:…

Answered: The net income reported on the 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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THE CLIENT HAD A BALANCE OF 80,000 FOR EQUIPMENT AND 20,000 FOR ACCUMULATED DEPRECIATION AT THE BEGINNING OF THE YEAR , WHAT WOULD THE BALANCE BE AT YEAR-END OF EQUIPMENT AND ACCUMULATED DEPRECTION GIVEN WHAT YOU KNOW THAT THE TOTAL DEPRECIATION EXPENSE FOR THE YEAR WAS 15,000?
The net income reported on the income statement for the current year was $262,020. Depreciation recorded on fixed assets and amortization of patents for the year were $36,452 and $10,407, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: End Beginning Cash $63,668 $46,686 Accounts Receivable 122,533 102,817 Inventories 103,584 82,828 Prepaid Expenses 2,753 6,144 Accounts Payable (merchandise creditors) 46,211 71,113 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?
3. The net income reported on the income statement for the current year was $304,374. Depreciation recorded on fixed assets and amortization of patents for the year were $32,397 and $8,545, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: End Beginning Cash $37,946 $53,537 Accounts Receivable 124,179 105,179 Inventories 113,951 87,274 Prepaid Expenses 3,330 8,740 Accounts Payable (merchandise creditors) 50,535 72,784 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? a.$282,800 b.$365,298 c.$299,639 d.$279,858
The net income reported on the income statement for the current year was $313,659. Depreciation recorded on fixed assets and amortization of patents for the year were $38,968, and $9,722, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: End Beginning Cash $42,392 $55,782 Accounts receivable 126,305 101,016 Inventories 100,582 80,433 Prepaid expenses 4,060 7,575 Accounts payable (merchandise creditors) 50,302 78,390 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? Oa. $214,402 Ob. $432,360 Oc. $412,916 Od. $292,338
Equipment was acquired at the beginning of the year at a cost of $625,000. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $46,635. a. What was the depreciation for the first year? Round your answer to the nearest cent.$ b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $105,608. Round your answer to the nearest cent and enter as a positive amount.$ Loss c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent
Extracts from Tom Ltd's Statement of financial positions are given below: At year- end At beginning of year £'000 £'000 Non-current assets 295 240 Accumulated depreciation 150 105 Net book value 145 135 Assuming there were no disposals within the year, which of the following statements is true? Select one: OA. During the year, the amount spent on the purchase of non-current assets was £295,000 and the depreciation charge for the year was £150,000. OB. During the year, the amount spent on the purchase of non-current assets was £55,000 and the depreciation charge for the year was £150,000. OC. During the year, the amount spent on the purchase of non-current asset purchases was £55,000 and the depreciation charge for the year was £45,000. OD. During the year, the amount spent on the purchase of non-current assets was £295,000 and the depreciation charge for the year was £45,000.
The net income reported on the income statement for the current year was $262,100. Depreciation recorded on equipment and a building amounted to $78,400 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $71,030 $75,290 Accounts receivable (net) 90,070 92,910 Inventories 177,580 160,070 Prepaid expenses 9,870 10,620 Accounts payable (merchandise creditors) 79,340 84,020 Salaries payable 11,440 10,470 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.
Depreciation of equipment was estimated to be $7,200 for the year
Wolfpack Corp. has determined it should record depreciation expense of $40,000 for the year ending 12/31/X7. Required: In the general journal below, complete the year-end entry to record depreciation. Debit Credit Dec 31 ? 40,000 ? 40,000
The following balances were extracted from the trial balance of XY Co Ltd as at 31st December 2010. • Buildings (at cost) 22,500 • Accumulated depreciation buildings 6,250 • Fixture and fittings (at cost) 6,000 • Accumulated depreciation fixture and fittings 1,400 The depreciation is charged annually on the cost of fixed assets held at the end of the financial year at the following rates: • Buildings 4% per annum • Fixtures and fittings 10% per annum The totalnet book value is?
Congress Corporation's accumulated depreciation—equipment account increased by $5,000, while $3,200 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $3,800 from the sale of investments. Reconcile a net income of $56,300 to net cash flows from operating activities __________________
baghiben

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