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. (a) To find: To find net cash flow using direct method from the operating activities. Given information: Revenues: $200,000 Operating expenses: $110,000 Accounts receivable : $71,000 Accounts payable: $29,000

Question

Want to see the full answer?

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 23, Problem 7E

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.

(a) To find: To find net cash flow using direct method from the operating activities.

Given information: Revenues: $200,000

Operating expenses: $110,000

Accounts receivable: $71,000

Accounts payable: $29,000

To determine

(b) Given Information: COGS: $310,000.00

Operating Expense (Excl depreciation): $230,000.00

Balance sheet shows the following: Increase in Inventory: $26,000.00

Decrease in Prepaid expense: $8,000.00

Decrease in accounts payable (related to merchandise): $17,000.00

Increase in accrued expense payable: $11,000.00

To find (a) cash payments to suppliers and (b) cash payments for operating expenses.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Hii expert please given correct answer financial accounting

The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production. Date Item Debit Credit BalanceDebit BalanceCredit August 1 Bal., 6,300 units, 4/5 completed 16,884 31 Direct materials, 113,400 units 226,800 243,684 31 Direct labor 64,390 308,074 31 Factory overhead 36,212 344,286 31 Goods finished, 114,900 units 332,958 11,328 31 Bal., ? units, 2/5 completed 11,328 a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent. Line Item Description Amount 1. Direct materials cost per equivalent unit $fill in the blank 1 2. Conversion cost per equivalent unit $fill in the blank 2 3. Cost of the beginning work in process completed during August $fill in the blank 3 4. Cost of units started and completed during August $fill in the blank 4 5. Cost of the ending work in…

Waiting for your solution general accounting question

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 23, Problem 7E

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.

(a) To find: To find net cash flow using direct method from the operating activities.

Given information: Revenues: $200,000

Operating expenses: $110,000

Accounts receivable: $71,000

Accounts payable: $29,000

To determine

(b) Given Information: COGS: $310,000.00

Operating Expense (Excl depreciation): $230,000.00

Balance sheet shows the following: Increase in Inventory: $26,000.00

Decrease in Prepaid expense: $8,000.00

Decrease in accounts payable (related to merchandise): $17,000.00

Increase in accrued expense payable: $11,000.00

To find (a) cash payments to suppliers and (b) cash payments for operating expenses.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 23, Problem 7E

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.

(a) To find: To find net cash flow using direct method from the operating activities.

Given information: Revenues: $200,000

Operating expenses: $110,000

Accounts receivable: $71,000

Accounts payable: $29,000

To determine

(b) Given Information: COGS: $310,000.00

Operating Expense (Excl depreciation): $230,000.00

Balance sheet shows the following: Increase in Inventory: $26,000.00

Decrease in Prepaid expense: $8,000.00

Decrease in accounts payable (related to merchandise): $17,000.00

Increase in accrued expense payable: $11,000.00

To find (a) cash payments to suppliers and (b) cash payments for operating expenses.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 23, Problem 7E

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.

(a) To find: To find net cash flow using direct method from the operating activities.

Given information: Revenues: $200,000

Operating expenses: $110,000

Accounts receivable: $71,000

Accounts payable: $29,000

To determine

(b) Given Information: COGS: $310,000.00

Operating Expense (Excl depreciation): $230,000.00

Balance sheet shows the following: Increase in Inventory: $26,000.00

Decrease in Prepaid expense: $8,000.00

Decrease in accounts payable (related to merchandise): $17,000.00

Increase in accrued expense payable: $11,000.00

To find (a) cash payments to suppliers and (b) cash payments for operating expenses.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 23, Problem 7E

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.

(a) To find: To find net cash flow using direct method from the operating activities.

Given information: Revenues: $200,000

Operating expenses: $110,000

Accounts receivable: $71,000

Accounts payable: $29,000

To determine

(b) Given Information: COGS: $310,000.00

Operating Expense (Excl depreciation): $230,000.00

Balance sheet shows the following: Increase in Inventory: $26,000.00

Decrease in Prepaid expense: $8,000.00

Decrease in accounts payable (related to merchandise): $17,000.00

Increase in accrued expense payable: $11,000.00

To find (a) cash payments to suppliers and (b) cash payments for operating expenses.

Answer 6

Chapter 23, Problem 7E

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.

(a) To find: To find net cash flow using direct method from the operating activities.

Given information: Revenues: $200,000

Operating expenses: $110,000

Accounts receivable: $71,000

Accounts payable: $29,000

Answer 7

Chapter 23, Problem 7E

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.

(a) To find: To find net cash flow using direct method from the operating activities.

Given information: Revenues: $200,000

Operating expenses: $110,000

Accounts receivable: $71,000

Accounts payable: $29,000

Answer 8

To determine

(b) Given Information: COGS: $310,000.00

Operating Expense (Excl depreciation): $230,000.00

Balance sheet shows the following: Increase in Inventory: $26,000.00

Decrease in Prepaid expense: $8,000.00

Decrease in accounts payable (related to merchandise): $17,000.00

Increase in accrued expense payable: $11,000.00

To find (a) cash payments to suppliers and (b) cash payments for operating expenses.

Answer 9

To determine

(b) Given Information: COGS: $310,000.00

Operating Expense (Excl depreciation): $230,000.00

Balance sheet shows the following: Increase in Inventory: $26,000.00

Decrease in Prepaid expense: $8,000.00

Decrease in accounts payable (related to merchandise): $17,000.00

Increase in accrued expense payable: $11,000.00

To find (a) cash payments to suppliers and (b) cash payments for operating expenses.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

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

Videos

Want to see the full answer?

Chapter 23 Solutions