The net income reported on the income statement for the current year was SAR 250,000. Depreciation recorded on fixed assets and amortization of patents for the year was SAR 40,000 and SAR 9,000 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 SAR 50,000 SAR 60,000 Accounts receivable 112,000 108,000 Inventories 105,000 93,000 Furniture & Fixture 50,000 60,000 Prepaid expenses 4,500 6,500 Accounts payable (merchandise creditors) 75,000 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? 89,000

The net income reported on the income statement for the current year was SAR 250,000. Depreciation recorded on fixed assets and amortization of patents for the year was SAR 40,000 and SAR 9,000 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 SAR 50,000 SAR 60,000 Accounts receivable 112,000 108,000 Inventories 105,000 93,000 Furniture & Fixture 50,000 60,000 Prepaid expenses 4,500 6,500 Accounts payable (merchandise creditors) 75,000 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? 89,000

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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Assume a company had net income of $79,000 that included a gain on the sale of equipment of $4,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: Accounts receivable $ 40,000 $ 46,000 Inventory $ 53,000 $ 50,000 Prepaid expenses $ 13,000 $ 11,000 Current liabilities: Accounts payable $ 38,000 $ 44,000 Accrued liabilities $ 18,000 $ 15,000 Income taxes payable $ 13,000 $ 10,000 If the credits to the company’s accumulated depreciation account were $21,000, then based solely on the information provided, the company’s net cash provided by (used in) operating activities would be: Multiple Choice $63,000. $55,000. $105,000. $97,000.
On January 1, 2023, a machine was purchased for $105,000. The machine has an estimated salvage value of $6,420 and an estimated useful life of 5 years. The machine can operate for 106,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2023, 21,200 hours; 2024, 26,500 hours; 2025, 15,900 hours: 2026, 31,800 hours; and 2027, 10,600 hours. Compute the annual depreciation charges over the machine's life assuming a December 31 year-end for each of the following depreciation methods. (Round rate per hour to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 45,892.) 1. Straight-line Methodi $ 2. Activity Method Year 2023 2024 2025 $ 19,716 19,716 24,645 14,787
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