Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Question
Chapter 13, Problem 15E
A.
To determine
Determine the net income reported by C Incorporation for the year ended December 31.
B.
To determine
Explain the reason for the difference between net income and net cash flow from operating activities.
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Net Cash Provided by Operating Activities
Changes in various accounts and gains and losses on the sale of assets during the year for Argon Company are given below:
Required:
Prepare an answer sheet using the following column headings:
For each item, place an X in the Add or Subtract column to indicate whether the dollar amount should be added to or subtracted from net income under the indirect method when computing the net cash provided by operating activities for the year.
termining Net Income from Net Cash Flow from Operating Activities
Determining net income from net cash flows from operating activities
Curwen Inc. reported net cash flows from operating activities of $199,500 on its statement of cash flows for the year ended December 31. The following information was reported in the “Cash flows from (used for) operating activities” section of the statement of cash flows, using the indirect method:
Line Item Description
Amount
Decrease in income taxes payable
$4,100
Decrease in inventories
10,300
Depreciation
15,800
Gain on sale of investments
7,100
Increase in accounts payable
2,800
Increase in prepaid expenses
1,700
Increase in accounts receivable
7,700
a. Determine the net income reported by Curwen Inc. for the year ended December 31.
Prepare the statement of cash flows in good form usingINDIRECT METHOD. Be sure to provide a proper heading for thestatement. Thank you.
Chapter 13 Solutions
Financial And Managerial Accounting
Ch. 13 - What is the principal disadvantage of the direct...Ch. 13 - Prob. 2DQCh. 13 - A corporation issued 2,000,000 of common stock in...Ch. 13 - A retail business, using the accrual method of...Ch. 13 - Prob. 5DQCh. 13 - A long-term investment in bonds with a cost of...Ch. 13 - A corporation issued 2,000,000 of 20-year bonds...Ch. 13 - Fully depreciated equipment costing 50,000 was...Ch. 13 - Prob. 9DQCh. 13 - Name five common major classes of operating cash...
Ch. 13 - Classifying cash flows Identify whether each of...Ch. 13 - Prob. 2BECh. 13 - Prob. 3BECh. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Land transactions on the statement of cash flows...Ch. 13 - Common stock transactions on the statement of cash...Ch. 13 - Prob. 7BECh. 13 - Appendix 2 Cash received from customersdirect...Ch. 13 - Appendix 2 Cash payments for merchandisedirect...Ch. 13 - Prob. 1ECh. 13 - Effect of transactions on cash flows State the...Ch. 13 - Classifying cash flows Identify the type of cash...Ch. 13 - Prob. 4ECh. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Prob. 7ECh. 13 - Reporting changes in equipment on statement of...Ch. 13 - Reporting changes in equipment on statement of...Ch. 13 - Reporting land transactions on statement of cash...Ch. 13 - Determining cash payments to stockholders The...Ch. 13 - Prob. 12ECh. 13 - Reporting land acquisition for cash and mortgage...Ch. 13 - Reporting issuance and retirement of long-term...Ch. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsindirect method List the...Ch. 13 - Prob. 19ECh. 13 - Prob. 20ECh. 13 - Prob. 21ECh. 13 - Prob. 22ECh. 13 - Prob. 1PACh. 13 - Prob. 2PACh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsdirect method The...Ch. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Prob. 1PBCh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsdirect method The...Ch. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Analyze and compare Amazon.com, Best Buy, and...Ch. 13 - Analyze and compare Apple, Coca-Cola, and Verizon...Ch. 13 - Prob. 3MADCh. 13 - Prob. 4MADCh. 13 - Prob. 5MADCh. 13 - Ethics in Action Head Donuts Inc. is a retailer of...Ch. 13 - Prob. 3TIFCh. 13 - Using the statement of cash flows You are...
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