Please do not give solution in image format thanku Exercise 12-3 (Algo) Indirect: Reporting cash flows from operations LO P2Arundel Company disclosed the following information for its recent calendar year.Income Statement DataRevenuesExpenses:Salaries expenseUtilities expenseDepreciation expenseInterest expenseFNet loss$ 105,00072,00033,00029, 2008,000$ (37,200)Selected Year-End Balance Sheet DataAccounts receivable decreasePurchased a machine for cashSalaries payable increaseInterest payable decreasePrepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should beindicated with a minus sign.)Statement of Cash Flows (partial)Cash flows from operating activities-indirect methodNet lossChanges in current operating assets and liabilitiesAdjustments to reconcile net income to net cash provided by operating activitiesIncome statement items not affecting cash$ 37,200$$ 28,00021,00027,00016,00037,200

Solution The cash flow statement is a financial statement which is used to calculate the net…

Answered: the opera ection of statem nt or Sn…

Business

Accounting

the opera ection of statem nt or Sn flows usin indirecT

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 15E

See similar textbooks

Similar questions

COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Powell Companys condensed income statement for the year ended December 31, 20-2, was as follows: Additional information obtained from Powells comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows: Depreciation expense for 20-2, included in operating expenses on the income statement, was 29,000. REQUIRED Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2.
Reporting changes in equipment on statement of cash flows An analysis of the general ledger accounts indicates that office equipment, which cost 245,000 and on which accumulated depreciation totaled 112,500 on the date of sale, was sold for 105,900 during the year. Using this information, indicate the items to be reported on the statement of cash flows.
Statement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income, 68,000 b. Increase in accounts receivable, 4,400 c. Receipt from sale of common stock, 12,300 d. Depreciation expense, 11,300 e. Dividends paid, 24,500 f. Payment for purchase of building, 65,000 g. Bond discount amortization, 2,700 h. Receipt from sale of long-term investments at cost, 10,600 i. Payment for purchase of equipment, 8,000 j. Receipt from sale of preferred stock, 20,000 k. Increase in income taxes payable, 3,500 l. Payment for purchase of land, 9,700 m. Decrease in accounts payable, 2,900 n. Increase in inventories, 10,300 o. Beginning cash balance, 18,000 Required: Prepare Mueller Company's statement of cash flows.
Partial Statement of Cash Flows Service Company had net income during the current year of $65,800. The following information was obtained from Services balance sheet: Accounts receivable $26,540 increase Inventory 32,180 increase Accounts payable 9,300 decrease Interest payable 2,120 increase Accumulated depreciation (Building) 14,590 increase Accumulated depreciation (Equipment) 32,350 increase Additional Information: 1. Equipment with accumulated depreciation of $18,000 was sold during the year. 2. Cash dividends of $29,625 were paid during the year. Required: 1. Prepare the net cash flows from operating activities using the indirect method. 2. CONCEPTUAL CONNECTION How would the cash proceeds from the sale of equipment he reported on the statement of cash flows? 3. CONCEPTUAL CONNECTION How would the cash dividends be reported on the statement of cash flows? 4. CONCEPTUAL CONNECTION What could the difference between net income and cash flow from operating activities signal to financial statement users?
COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Horn Companys condensed income statement for the year ended December 31, 20-2, was as follows: Additional information obtained from Horns comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows: Depreciation expense for 20-2, included in operating expenses on the income statement, was 32,000. REQUIRED Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2.
COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Horn Companys condensed income statement for the year ended December 31, 20-2, was as follows: Additional information obtained from Horns comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows: Depreciation expense for 20-2, included in operating expenses on the income statement, was 32,000. REQUIRED Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. SCHEDULE FOR CALCULATION OF CASH GENERATED FROM OPERATING ACTIVITIES Using the information provided in Problem 23-9A for Horn Company, prepare the following: 1. A schedule for the calculation of cash generated from operating activities for Horn Company for the year ended December 31, 20-2. 2. A partial statement of cash flows for Horn Company reporting cash from operating activities under the direct method for the year ended December 31, 20-2.
COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Powell Companys condensed income statement for the year ended December 31, 20-2, was as follows: Additional information obtained from Horns comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows: Depreciation expense for 20-2, included in operating expenses on the income statement, was 32,000. REQUIRED Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. SCHEDULE FOR CALCULATION OF CASH GENERATED FROM OPERATING ACTIVITIES Using the information provided in Problem 23-11B for Powell Company, prepare the following: 1. A schedule for the calculation of cash generated from operating activities for Powell Company for the year ended December 31, 20-2. 2. A partial statement of cash flows for Powell Company reporting cash from operating activities under the direct method for the year ended December 31, 20-2.
Reporting changes in equipment on statement of cash flows An analysis of the general ledger accounts indicates that delivery equipment, which cost 75,000 and on which accumulated depreciation totaled 58,000 on the date of sale, was sold for 20,200 during the year. Using this information, indicate the items to be reported on the statement of cash flows.
Exercise 16 - 5 (Algo) Indirect: Cash flows from operating activities LO P2SFitz Company reports the following information.Selected Annual Income Statement DataNet incomeDepreciation expenseAmortization expenseGain on sale of plant assetsSelected Year - End Balance Sheet Data$ 376,000 Accounts receivable decrease 44,200 Inventory decrease 7,300 Prepaid expenses increase6, 100 Accounts payable decreaseSalaries payable increase$ 122, 40042, 5005, 8008, 8002, 400Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended
Subject: acounting
Cash Flows from Operating Activities-Indirect Method The income statement disclosed the following items for the year: Depreciation expense Gain on disposal equipment Net Income The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) $33,700 19,670 209,300 Accounts receivable Inventory Prepaid insurance Accounts payable Income taxes payable Dividends payable 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 out flows, cash payments, decreases in cash, or any negative adjustments. Cash flows from operating activities: $5,250 (2,990) (1,120) (3,560) 1,120 790 Statement of Cash Flows (partial) Adjustments to reconcile net income to net cash flow from operating activities: Net cash flow from operating activities Changes in current operating assets and liabilities: b. Why is net cash flows from operating activities different than net…
Current Attempt in Progress Lee Enterprises reports the following information: Net income Depreciation expense Increase in accounts payable Increase in accounts receivable $5180000 $3979520. $5180000. $6380480. $5706480. 704480 159000 337000 Lee should report cash provided by operating activities of