Net income is $43,774. During the year, the company had $25.417 depreciation expense and a gain on sale of assets of$24,417. In addition, accounts receivable increased $5,242, supplies decreased $849 and accounts payable increased$7,201. What is the net cash provided by operations under the indirect method? If the answer is a source, leave thenumber.pociti

Cash flow from operations:Cash flow from operations (CFO) is a key financial metric that represents…

Answered: What is the net cash provided by…

Business

Accounting

What is the net cash provided by operations under the indirect method?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: What should the net change in cash section of the statement of cash flows always reconcile with?

A: Cash flows statement is a summary statement which provides details of all the cash inflows and cash…

Q: What is the purpose of cashflow statement ? What are the activities that are affecting the…

A: The cash flow statement is one of the financial statements of the business. It records the cash flow…

Q: Explain Distribution of Cash from Sale of Asset?

A: The question is based on the concept of distribution of cash to the shareholders , which is simply…

Q: Which approach makes use of net income and which way makes use of cashflow

A: The cash flow statement is the direct way, and the indirect way.

Q: Which of the following method will be adopted to disclose Cash equivalents in the balance sheet? a.…

A: Historical cost method will be adopted to disclose Cash equivalents in the balance sheet....…

Q: What are the three primary categories of cash flows?

Q: What are normal and nonnormal cash flows?

A: Answer: Normal cash flows projects are those in which one or two cash outflows occur at the outset…

Q: What is the difference between the sources (in nows) and uses (out nows) of cash?

A: The question is based on the concept of cash flow statement and cash flow analysis for a particular…

Q: Explain how the amount of cash payments to suppliers iscomputed under the direct method.

A: Statement of cash flows: The statement of cash flows is a statement which includes all transactions…

Q: how can the gain on the sale of invesment be a deduction from net income in determining the cash…

A: Statement of cash flows: Cash flow statement is also known as statement of cash flows. It is a…

Q: How do I calculate cash provided by operations?

A: Cash provided by the operations = Cash flow from operations = EBIT x (1 - Tax rate, T) + Non cash…

Q: what are the major advantages of the indirect method of reporting cash flow from operating…

Q: how is liquidity determines in cash collection period

A: Liquidity refers to the ability of a company to meet its short-term obligations with cash or cash…

Q: Determine cash flows from operating activities by the indirect method.

Q: What are the Examples of cash equivalents?

A: Cash & Cash equivalents: Cash is the money which is readily available in the form of currency.…

Q: What are the techniques for establishing cash flow equivalence with compound-interest?

A: Cash flow equivalence is established using the compound interest because investors prefer the amount…

Q: WOBking cap all Yeaxs? ital fox all Years? As Reported Annual Balance Sheet Report Date Scale Assets…

A: Lets understand the basics. Working capital is a capital which is needed to run a day to day…

Q: What are the different risks associated in the accounting of cash

A: The element of risk arises in each and every area and how well we can minimise or reduce the risk is…

Q: What are the primary distinctions between the direct and indirect methods of presenting the…

A: The direct and indirect methods of presenting the Statement of Cash Flows will be explained :

Q: What is free cash flow, and how is it calculated?

A: Free cash flow:Free cash flow is defined as an evaluation of financial performance of a company. It…

Q: What are the basic differences in the direct method vs. the indirect method of presenting the…

A: Statement of cash flows is one of the financial statement which shows all cash inflows and cash…

Q: What are the primary benefits of reporting cash flows from operational operations in an indirect…

A: This question explains about cash flows from operational operations in an indirect manner

Q: rual profit

A: Difference between Cash and Accrual Profit The cash basis and accrual basis of accounting are two…

Q: hat is "free cash flow" and how is it different from net income? Which of the two componenets is…

A: Free cash flow is very important in valuation of the company and cash is very important for the…

Q: Explain the Sharing of Cash Flow from Sale?

A: Operating cash flows (OCF) is a calculation of the cash generated from the ordinary operations of…

Q: (a) How are cash equivalents reported in the financial statements? (b) What are some examples of…

Q: When using the indirect method of determining net cash flows from operating activities, how is…

A: Cash flow statement (CFS) is a type of financial statement that gives a summary related to all the…

Q: What is the difference between net cash provided by operating activities and free cash flow?

Question

Net income is $43,774. During the year, the company had $25.417 depreciation expense and a gain on sale of assets of
$24,417. In addition, accounts receivable increased $5,242, supplies decreased $849 and accounts payable increased
$7,201. What is the net cash provided by operations under the indirect method? If the answer is a source, leave the
number.pociti

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction to Cash flow from operations

VIEW

Step 2: Computation of Cash flow from operations

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

How do the direct and the indirect methods differ in their approach to computing the net cash provided by operating activities?
What are some examples of cash flow from operating activities?
What are cash equivalents? Provide two examples. Whyare these items often combined with cash for the purpose ofbalance sheet presentation?
What are the key steps in preparing the Statement of Cash Flows, using the indirect method? What are the advantages of using the indirect method for reporting cash flows from operating activities?
What is the difference between the net aggregate cash inflow and the net aggregate incomes?
What are the differences between cash from operating activities, cash from investing activities, and cash from financing activities?
What are the major advantages of the indirect method of reporting cash flows from operating activities?
How must profits and losses be handled when generating the operational portion of the cash flow using the indirect method? Why?
what apposing goals must be achieved in cash management?
What are some of the grounds for reporting a statement of cash flows using the indirect (reconciliation) approach rather than the direct method?
The statements of financial position for W Limited are as follows: 31 December Non-current assets Land and buildings Cost/valuation Accumulated depreciation Plant and equipment Cost Accumulated depreciation Current assets Inventory Trade receivables Cash and cash equivalents Total Assets Equity and Liabilities Ordinary share capital ($1 shares) Share premium Revaluation reserve Retained earnings Non-current liabilities 12% debenture (2030) Current liabilities Trade payables Bank overdraft 2021 $000 4 1150 201 949 539 326 213 1162 117 135 252 1414 600 120 80 136 936 150 86 242 328 478 1414 2020 $000 650 160 490 454 274 180 670 89 103 37 229 899 400 70 109 579 200 120 120 320 899 Total liabilities Total equity and liabilities The following information is also available. 1 The cost of land and buildings at 31 December 2020 comprised of land $250000 and buildings $400 000. The land, which is not depreciated, had been revalued to $330 000 on 1 July 2021. 2 On 1 March 2021, a final dividend…
What Is EFT In The Context Of Cash