Use the following information to perform the calculations below (using the indirect method).Net incomeDepreciation expenseBeginning accounts receivableEnding accounts receivableBeginning inventoryEnding inventoryBeginning prepaid ins ranceEnding prepaid insurance(a)$610,000Beginning accounts payable92,000Ending accounts payable429,200Purchase of long-term assets430,000Issuance of long-term debt for cash510,000Issuance of stock for cash563,000Issuance of stock for long-term assets.40,100Purchase of treasury stock46,600 Sale of long-term investment at cost$111,000Cash flows from operating activities $152,000778,000283,000170,000106,00061,50054,000Calculate the net cash flows from operating activities. (Show amount that decrease cash flow with either a-sign eg.-15,000 or inparenthesis e.g. (15,000).)

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Description: Use the following information to perform the calculations below (using the indirect method).Net incomeDepreciation expenseBeginning accounts receivableEnding accounts receivableBeginning inventoryEnding inventoryBeginning prepaid ins ranceEnding pre

A cash flow statement indicates cash inflow and outflow information for a particular time period and…

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Use the following information to perform the calculations below (using the indirect method). Net income Depreciation expense Beginning accounts receivable $610,000 92,000 429,200 Beginning accounts payable Ending accounts payable Purchase of long-term assets $111,000 152,000 778,000

Use the following information to perform the calculations below (using the indirect method). Net income Depreciation expense Beginning accounts receivable $610,000 92,000 429,200 Beginning accounts payable Ending accounts payable Purchase of long-term assets $111,000 152,000 778,000

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

Use the following information to perform the calculations below (using the indirect method).
Net income
Depreciation expense
Beginning accounts receivable
Ending accounts receivable
Beginning inventory
Ending inventory
Beginning prepaid ins rance
Ending prepaid insurance
(a)
$610,000
Beginning accounts payable
92,000
Ending accounts payable
429,200
Purchase of long-term assets
430,000
Issuance of long-term debt for cash
510,000
Issuance of stock for cash
563,000
Issuance of stock for long-term assets.
40,100
Purchase of treasury stock
46,600 Sale of long-term investment at cost
$111,000
Cash flows from operating activities $
152,000
778,000
283,000
170,000
106,000
61,500
54,000
Calculate the net cash flows from operating activities. (Show amount that decrease cash flow with either a-sign eg.-15,000 or in
parenthesis e.g. (15,000).)

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