College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 23A, Problem 5SPB
1.
To determine
Prepare a schedule for the calculation of cash generated from operating activities for K Company for the year ended December 31, 20-2.
2.
To determine
Prepare a partial statement of
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Required information
[The following information applies to the questions displayed below.]
Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and
prior years follow.
LANSING COMPANY
Income Statement
For Current Year Ended December 31
Sales revenue
Expenses
Cost of goods sold
Depreciation expense
Salaries expense
Rent expense
Insurance expense
Interest expense
Utilities expense
Net income
$ 97,200
At December 31
Accounts receivable
Inventory
Accounts payable
Salaries payable
Utilities payable
Prepaid insurance
Prepaid rent
42,000
12,000
18,000
9,000
3,800
3,600
2,800
$ 6,000
LANSING COMPANY
Selected Balance Sheet Accounts
Current Year
$ 5,600
1,980
4,400
880
220
260
220
Prior Year
$ 5,800
1,540
4,600
700
160
280
180
Reporting Net Cash Flow from Operating Activities
The following information is available for Cornelius Inc.:
Selected Income Statement Information
Amount
Net income
$52,000
Depreciation expense
11,300
Selected Balance Sheet Information
Beginning Balance
Ending Balance
Accounts receivable
$11,500
$17,650
Inventory
33,800
27,825
Accounts payable
15,900
24,600
Required:
Prepare the net cash flows from operating activities using the indirect method. Use a minus sign to indicate any decreases in cash or cash flows.
Cornelius Inc.Net Cash Flows from Operating ActivitiesUsing Indirect Method
Cash flows from operating activities:
$- Select -
Adjustments to reconcile net income to net cash flow from operating activities:
$- Select -
- Select -
- Select -
- Select -
Net cash provided by operating activities
$fill in the blank 11
Required prepare a complete statement of cash flow using indirect method for the current year
Chapter 23A Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 23A - Describe the direct method of reporting cash flows...Ch. 23A - Prob. 2RQCh. 23A - Prob. 3RQCh. 23A - Under the direct method of preparing a statement...Ch. 23A - Under the direct method of preparing a statement...Ch. 23A - CASH RECEIVED FROM CUSTOMERS Potts Companys sales...Ch. 23A - Prob. 2SEACh. 23A - Prob. 3SEACh. 23A - Prob. 4SEACh. 23A - Prob. 5SPA
Ch. 23A - COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Horn...Ch. 23A - EXPANDED STATEMENT OF CASH FLOWS Financial...Ch. 23A - CASH RECEIVED FROM CUSTOMERS Boyd Companys sales...Ch. 23A - Prob. 2SEBCh. 23A - Prob. 3SEBCh. 23A - Prob. 4SEBCh. 23A - Prob. 5SPBCh. 23A - COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES...Ch. 23A - EXPANDED STATEMENT OF CASH FLOWS Financial...
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