Use the following information and the indirect method to calculate the net cash provided orused by operating activities:Net incomeDepreciation expenseGain on sale of land$ 86,30013,0007,300Increase in merchandise inventory 3,050Increase in accounts payable 7,150$30,400.$14,600.$96,100.O $15,600.O $37,700.

The objective of the question is to calculate the net cash provided or used by operating activities…

Answered: Use the following information and the…

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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it is about constructing cash flow statement using indirect method, how is it get the 45? And please explain the calculation.
Use the indirect method to determine Anka Company’s net cash provided or used for operating activities using the below information: Net income $15,200 Depreciation expense 10,000 Cash payment on long-term note payable 8,000 Gain on sale of equipment 3,000 Increase in inventory 1,500 Increase in accounts payable 2,850 Group of answer choices $15,550 $42,400 ($4,450) $23,550
Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $283,380 $266,640 Accounts receivable (net) 102,660 95,770 Inventories 289,780 283,550 Investments 0 109,850 Land 148,640 0 Equipment 319,740 250,680 Accumulated depreciation—equipment (74,850) (67,600) Total assets $1,069,350 $938,890 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $193,550 $184,960 Accrued expenses payable (operating expenses) 19,250 24,410 Dividends payable 10,690 8,450 Common stock, $10 par 57,740 46,010 Paid-in capital in excess of par—common stock 217,080 127,690 Retained earnings 571,040 547,370 Total liabilities and stockholders’ equity $1,069,350 $938,890 Additional data obtained from an examination of the accounts in the ledger for…
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Calculate the operating cash flow for Initech. (Assume that depreciation is tax deductible.) Initech Corp. Income Statement ($000's) Revenue Cost of Goods Sold SG&A Depreciation Expense. EBIT Interest Expense Income Before Taxes Taxes Net Income: $100,000 64,798 16,202 4,739 14,260 7,230 7,030 2,108 $4,922
(Appendix) When preparing a schedule for the calculation of cash generated from operating activities under the direct method, an increase in Depreciation Expense is a.subtracted from operating expenses. b.subtracted from net income. c.added to net income. d.added to operating expenses.
Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $271,620 $255,000 Accounts receivable (net) 98,400 91,580 Inventories 277,770 271,170 Investments 0 105,050 Land 142,470 0 Equipment 306,470 239,730 Accumulated depreciation—equipment (71,750) (64,650) Total assets $1,024,980 $897,880 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $185,520 $176,880 Accrued expenses payable (operating expenses) 18,450 23,340 Dividends payable 10,250 8,080 Common stock, $10 par 55,350 44,000 Paid-in capital in excess of par—common stock 208,070 122,110 Retained earnings 547,340 523,470 Total liabilities and stockholders’ equity $1,024,980 $897,880 Additional data obtained from an examination of the accounts in the ledger for 20Y9…
Using the indirect method, calculate the amount of cash flows from operating activities from the following data: Net Income $199,000 Beginning Accounts receivable 22,000 ending accounts recievable 29,000 Beginning Prepaid insurance 5,000 Ending prepaid insurance 2,000 Beginning Accounts payable 15,000 Ending Accounts payable 14,000 Depreciation expense 50,000 Amortization of intangible asset 6,000 dividends declared and paid 11,000
Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $268,370 $252,240 Accounts receivable (net) 97,220 90,590 Inventories 274,450 268,230 Investments 0 103,910 Land 140,770 0 Equipment 302,800 237,140 Accumulated depreciation—equipment (70,890) (63,950) Total assets $1,012,720 $888,160 Liabilities and Stockholders' Equity Accounts payable $183,300 $174,970 Accrued expenses payable 18,230 23,090 Dividends payable 10,130 7,990 Common stock, $10 par 54,690 43,520 Paid-in capital: Excess of issue price over par-common stock 205,580 120,790 Retained earnings 540,790 517,800 Total liabilities and stockholders’ equity $1,012,720 $888,160 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:…
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Ravenna Company is a merchandiser using the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash and cash equivalents $ 89,000 $ 106,750 Accounts receivable 71,500 77,000 Inventory 96,000 87,500 Total current assets 256,500 271,250 Property, plant, and equipment 255,000 245,000 Less accumulated depreciation 85,000 61,250 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable $ 56,000 $ 99,500 Income taxes payable 43,500 57,000 Bonds payable 105,000 87,500 Common stock 122,500 105,000 Retained earnings 99,500 106,000 Total liabilities and stockholders’ equity $ 426,500 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and sold a piece of equipment for $5,250 that originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or…
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