Cash flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company. Indirect method: Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities. Deduct increase in current assets. Deduct decrease in current liabilities. Add decrease in current assets. Add the increase in current liability. Add depreciation expense and amortization expense. Add loss on sale of plant assets. Less gain on sale of plant assets. To prepare: The operating activities section of the cash flows statement for 2017 using the indirect method.

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Answer 1

Question

Chapter 13, Problem 13.4E

To determine

Cash flows from operating activities:

These refer to the cash received or cash paid in day-to-day operating activities of a company.

Indirect method:

Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

Deduct increase in current assets.

Deduct decrease in current liabilities.

Add decrease in current assets.

Add the increase in current liability.

Add depreciation expense and amortization expense.

Add loss on sale of plant assets.

Less gain on sale of plant assets.

To prepare: The operating activities section of the cash flows statement for 2017 using the indirect method.

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Answer 2

Question

Chapter 13, Problem 13.4E

To determine

Cash flows from operating activities:

These refer to the cash received or cash paid in day-to-day operating activities of a company.

Indirect method:

Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

Deduct increase in current assets.

Deduct decrease in current liabilities.

Add decrease in current assets.

Add the increase in current liability.

Add depreciation expense and amortization expense.

Add loss on sale of plant assets.

Less gain on sale of plant assets.

To prepare: The operating activities section of the cash flows statement for 2017 using the indirect method.

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Answer 3

Question

Chapter 13, Problem 13.4E

To determine

Cash flows from operating activities:

These refer to the cash received or cash paid in day-to-day operating activities of a company.

Indirect method:

Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

Deduct increase in current assets.

Deduct decrease in current liabilities.

Add decrease in current assets.

Add the increase in current liability.

Add depreciation expense and amortization expense.

Add loss on sale of plant assets.

Less gain on sale of plant assets.

To prepare: The operating activities section of the cash flows statement for 2017 using the indirect method.

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Answer 4

Question

Chapter 13, Problem 13.4E

To determine

Cash flows from operating activities:

These refer to the cash received or cash paid in day-to-day operating activities of a company.

Indirect method:

Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

Deduct increase in current assets.

Deduct decrease in current liabilities.

Add decrease in current assets.

Add the increase in current liability.

Add depreciation expense and amortization expense.

Add loss on sale of plant assets.

Less gain on sale of plant assets.

To prepare: The operating activities section of the cash flows statement for 2017 using the indirect method.

Expert Solution & Answer

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Answer 5

Chapter 13, Problem 13.4E

To determine

Cash flows from operating activities:

These refer to the cash received or cash paid in day-to-day operating activities of a company.

Indirect method:

Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

Deduct increase in current assets.

Deduct decrease in current liabilities.

Add decrease in current assets.

Add the increase in current liability.

Add depreciation expense and amortization expense.

Add loss on sale of plant assets.

Less gain on sale of plant assets.

To prepare: The operating activities section of the cash flows statement for 2017 using the indirect method.

Answer 6

Chapter 13, Problem 13.4E

To determine

Cash flows from operating activities:

These refer to the cash received or cash paid in day-to-day operating activities of a company.

Indirect method:

Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

Deduct increase in current assets.

Deduct decrease in current liabilities.

Add decrease in current assets.

Add the increase in current liability.

Add depreciation expense and amortization expense.

Add loss on sale of plant assets.

Less gain on sale of plant assets.

To prepare: The operating activities section of the cash flows statement for 2017 using the indirect method.

Answer 7

Chapter 13, Problem 13.4E

To determine

Cash flows from operating activities:

These refer to the cash received or cash paid in day-to-day operating activities of a company.

Indirect method:

Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

Deduct increase in current assets.

Deduct decrease in current liabilities.

Add decrease in current assets.

Add the increase in current liability.

Add depreciation expense and amortization expense.

Add loss on sale of plant assets.

Less gain on sale of plant assets.

To prepare: The operating activities section of the cash flows statement for 2017 using the indirect method.

Answer 8

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Answer 11

Ch. 13 - (a) What is a statement of cash flows? (b) Mark...Ch. 13 - Prob. 2Q Ch. 13 - Prob. 3Q Ch. 13 - Prob. 4Q Ch. 13 - Prob. 5Q Ch. 13 - Prob. 6Q Ch. 13 - Prob. 7Q Ch. 13 - Contrast the advantages and disadvantages of the...Ch. 13 - Prob. 9Q Ch. 13 - Prob. 10Q

Solution Summary: The author explains how to prepare the operating activities section of the cash flows statement for 2017 using the indirect method.

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Chapter 13 Solutions