Operating activities: The items that are directly linked with the transactions that affect the net income of the company are termed as operating activities. Direct method: It reports cash receipts and disbursements arising out of operating activities. Difference between these amounts helps us arrive at the net cash flows from operating activities. To prepare: To prepare operating section of the statement of cash flows. Given information: Income statement for the year 2017 is as below. Particulars Amount ($) Amount ($) Sales revenue 6,900,000 COGS: Beginning inventory 1,900,000 Purchases 4,400,000 Goods available for sale 6,300,000 Ending inventory 1,600,000 Cost of goods sold 4,700,000 Gross profit 2,200,000 Operating expenses Selling expense 450,000 Administrative expenses 700,000 1,150,000 Net Income 1,050,000

Question

Want to see the full answer?

Answer 1

Question

Chapter 23, Problem 4E

To determine

Operating activities: The items that are directly linked with the transactions that affect the net income of the company are termed as operating activities.

Direct method: It reports cash receipts and disbursements arising out of operating activities. Difference between these amounts helps us arrive at the net cash flows from operating activities.

To prepare: To prepare operating section of the statement of cash flows.

Given information: Income statement for the year 2017 is as below.

Particulars

Amount
($)

Amount ($)

Sales revenue

6,900,000

COGS:

Beginning inventory

1,900,000

Purchases

4,400,000

Goods available for sale

6,300,000

Ending inventory

1,600,000

Cost of goods sold

4,700,000

Gross profit

2,200,000

Operating expenses

Selling expense

450,000

Administrative expenses

700,000

1,150,000

Net Income

1,050,000

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Kindly help me with this General accounting questions not use chart gpt

Calculate standard rate per direct labor hour general accounting question correct option

Please given correct answer for Financial accounting question I need step by step explanation

Answer 2

Question

Chapter 23, Problem 4E

To determine

Operating activities: The items that are directly linked with the transactions that affect the net income of the company are termed as operating activities.

Direct method: It reports cash receipts and disbursements arising out of operating activities. Difference between these amounts helps us arrive at the net cash flows from operating activities.

To prepare: To prepare operating section of the statement of cash flows.

Given information: Income statement for the year 2017 is as below.

Particulars

Amount
($)

Amount ($)

Sales revenue

6,900,000

COGS:

Beginning inventory

1,900,000

Purchases

4,400,000

Goods available for sale

6,300,000

Ending inventory

1,600,000

Cost of goods sold

4,700,000

Gross profit

2,200,000

Operating expenses

Selling expense

450,000

Administrative expenses

700,000

1,150,000

Net Income

1,050,000

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 23, Problem 4E

To determine

Operating activities: The items that are directly linked with the transactions that affect the net income of the company are termed as operating activities.

Direct method: It reports cash receipts and disbursements arising out of operating activities. Difference between these amounts helps us arrive at the net cash flows from operating activities.

To prepare: To prepare operating section of the statement of cash flows.

Given information: Income statement for the year 2017 is as below.

Particulars

Amount
($)

Amount ($)

Sales revenue

6,900,000

COGS:

Beginning inventory

1,900,000

Purchases

4,400,000

Goods available for sale

6,300,000

Ending inventory

1,600,000

Cost of goods sold

4,700,000

Gross profit

2,200,000

Operating expenses

Selling expense

450,000

Administrative expenses

700,000

1,150,000

Net Income

1,050,000

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 23, Problem 4E

To determine

Operating activities: The items that are directly linked with the transactions that affect the net income of the company are termed as operating activities.

Direct method: It reports cash receipts and disbursements arising out of operating activities. Difference between these amounts helps us arrive at the net cash flows from operating activities.

To prepare: To prepare operating section of the statement of cash flows.

Given information: Income statement for the year 2017 is as below.

Particulars

Amount
($)

Amount ($)

Sales revenue

6,900,000

COGS:

Beginning inventory

1,900,000

Purchases

4,400,000

Goods available for sale

6,300,000

Ending inventory

1,600,000

Cost of goods sold

4,700,000

Gross profit

2,200,000

Operating expenses

Selling expense

450,000

Administrative expenses

700,000

1,150,000

Net Income

1,050,000

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 23, Problem 4E

To determine

Operating activities: The items that are directly linked with the transactions that affect the net income of the company are termed as operating activities.

Direct method: It reports cash receipts and disbursements arising out of operating activities. Difference between these amounts helps us arrive at the net cash flows from operating activities.

To prepare: To prepare operating section of the statement of cash flows.

Given information: Income statement for the year 2017 is as below.

Particulars

Amount
($)

Amount ($)

Sales revenue

6,900,000

COGS:

Beginning inventory

1,900,000

Purchases

4,400,000

Goods available for sale

6,300,000

Ending inventory

1,600,000

Cost of goods sold

4,700,000

Gross profit

2,200,000

Operating expenses

Selling expense

450,000

Administrative expenses

700,000

1,150,000

Net Income

1,050,000

Answer 6

Chapter 23, Problem 4E

To determine

Operating activities: The items that are directly linked with the transactions that affect the net income of the company are termed as operating activities.

Direct method: It reports cash receipts and disbursements arising out of operating activities. Difference between these amounts helps us arrive at the net cash flows from operating activities.

To prepare: To prepare operating section of the statement of cash flows.

Given information: Income statement for the year 2017 is as below.

Particulars

Amount
($)

Amount ($)

Sales revenue

6,900,000

COGS:

Beginning inventory

1,900,000

Purchases

4,400,000

Goods available for sale

6,300,000

Ending inventory

1,600,000

Cost of goods sold

4,700,000

Gross profit

2,200,000

Operating expenses

Selling expense

450,000

Administrative expenses

700,000

1,150,000

Net Income

1,050,000

Answer 7

Chapter 23, Problem 4E

To determine

Operating activities: The items that are directly linked with the transactions that affect the net income of the company are termed as operating activities.

Direct method: It reports cash receipts and disbursements arising out of operating activities. Difference between these amounts helps us arrive at the net cash flows from operating activities.

To prepare: To prepare operating section of the statement of cash flows.

Given information: Income statement for the year 2017 is as below.

Particulars

Amount
($)

Amount ($)

Sales revenue

6,900,000

COGS:

Beginning inventory

1,900,000

Purchases

4,400,000

Goods available for sale

6,300,000

Ending inventory

1,600,000

Cost of goods sold

4,700,000

Gross profit

2,200,000

Operating expenses

Selling expense

450,000

Administrative expenses

700,000

1,150,000

Net Income

1,050,000

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 23 - Prob. 1Q Ch. 23 - Prob. 2Q Ch. 23 - Prob. 3Q Ch. 23 - Prob. 4Q Ch. 23 - Prob. 5Q Ch. 23 - Prob. 6Q Ch. 23 - Prob. 7Q Ch. 23 - Prob. 8Q Ch. 23 - Prob. 9Q Ch. 23 - Prob. 10Q

Concept explainers

Videos

Want to see the full answer?

Chapter 23 Solutions

Particulars	Amount ($)	Amount ($)
Sales revenue		6,900,000
COGS:
Beginning inventory	1,900,000
Purchases	4,400,000
Goods available for sale	6,300,000
Ending inventory	1,600,000
Cost of goods sold		4,700,000
Gross profit		2,200,000
Operating expenses
Selling expense	450,000
Administrative expenses	700,000	1,150,000
Net Income		1,050,000