9th Edition

ISBN: 9781259722660

Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher: McGraw-Hill Education

Concept explainers

Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows fro…

Balance Sheet

A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the …

Financial Statements

Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It…

Owner's Capital

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…

Videos

Textbook Question

Chapter 4, Problem 4.17E

Statement of cash flows; indirect method

• LO4–8

Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2018 fiscal year was $624,000. Depreciation and amortization expense of $87,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash:

Decrease in accounts receivable	$22,000
Increase in inventories	9,200
Increase prepaid expenses	8,500
Increase in salaries payable	10,000
Decrease in income taxes payable	14,000

Required:

Prepare the operating activities section of the 2018 statement of cash flows.

Chew Corporation prepares its statement of cash flows using the indirect method of reporting operating activities. Net income for the 2018 fiscal year was $1,250,000. Depreciation expense of $140,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash:

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 4, Problem 4.16E

Chapter 4, Problem 4.18E

Students have asked these similar questions

On December 31, 2018, Blackpink Company, a financing institution lent ₱15,000,000 to YG Corp. due 3 years after. The loan is supported by an 12% note receivable. Based on the company’s initial estimates the present value of the 12 months expected credit loss (ECL) discounted at 10% is at 2,000,000. The probability of default (PD) is at 7%. Blackpink Company was able to collect interest as it became due at the end of 2019. There was no evidence of significant increase in credit risk by the end 2019 and that the receivable is determined to have “low credit risk”. There were no changes in its initial estimate of the 12 months expected credit loss either. By the end of 2020, Blackpink Company was able to collect interest as it became due. Based on available forward-looking information (determinable without undue cost or effort), however, there is evidence that there was a significant increase in credit risk by the end of 2020. Blackpink Company therefore had to change its basis…

Need correct answer general accounting question

Chapter 4 Solutions

Intermediate Accounting

Ch. 4 - The income statement is a change statement....Ch. 4 - What transactions are included in income from...Ch. 4 - Prob. 4.3Q Ch. 4 - Prob. 4.4Q Ch. 4 - Prob. 4.5Q Ch. 4 - What are restructuring costs and where are they...Ch. 4 - Define intraperiod tax allocation. Why is the...Ch. 4 - How are discontinued operations reported in the...Ch. 4 - What is meant by a change in accounting principle?...Ch. 4 - Prob. 4.10Q

Ch. 4 - The correction of a material error discovered in a...Ch. 4 - Define earnings per share (EPS). For which income...Ch. 4 - Prob. 4.13Q Ch. 4 - Describe the purpose of the statement of cash...Ch. 4 - Prob. 4.15Q Ch. 4 - Explain what is meant by noncash investing and...Ch. 4 - Distinguish between the direct method and the...Ch. 4 - Prob. 4.18Q Ch. 4 - Prob. 4.19Q Ch. 4 - Show the calculation of the following...Ch. 4 - Show the DuPont frameworks calculation of the...Ch. 4 - Prob. 4.22Q Ch. 4 - Prob. 4.23Q Ch. 4 - Prob. 4.1BE Ch. 4 - Multiple -step income statement LO41, LO43 Refer...Ch. 4 - Prob. 4.3BE Ch. 4 - Multiple -step income statement LO41, LO43 The...Ch. 4 - Prob. 4.5BE Ch. 4 - Prob. 4.6BE Ch. 4 - Prob. 4.7BE Ch. 4 - Discontinued operations LO44 Refer to the...Ch. 4 - Discontinued operations LO44 Refer to the...Ch. 4 - Prob. 4.10BE Ch. 4 - Prob. 4.11BE Ch. 4 - Prob. 4.12BE Ch. 4 - Statement of cash flows; indirect method LO48 Net...Ch. 4 - Prob. 4.14BE Ch. 4 - Prob. 4.15BE Ch. 4 - Profitability ratios LO410 The 2018 income...Ch. 4 - Prob. 4.17BE Ch. 4 - Inventory turnover ratio LO410 During 2018, Rogue...Ch. 4 - Operating versus Nonoperating Income LO41 Pandora...Ch. 4 - Income statement format; single step and multiple...Ch. 4 - Income statement format; single step and multiple...Ch. 4 - Multiple-step continuous statement of...Ch. 4 - Income statement presentation LO41, LO45 The...Ch. 4 - Prob. 4.6E Ch. 4 - Income statement presentation; discontinued...Ch. 4 - Discontinued operations; disposal in subsequent...Ch. 4 - Discontinued operations; disposal in subsequent...Ch. 4 - Earnings per share LO45 The Esposito Import...Ch. 4 - Comprehensive income LO46 The Massoud Consulting...Ch. 4 - Prob. 4.12E Ch. 4 - Prob. 4.13E Ch. 4 - IFRS; statement of cash flows LO48, LO49 Refer to...Ch. 4 - Prob. 4.15E Ch. 4 - Prob. 4.16E Ch. 4 - Statement of cash flows; indirect method LO48...Ch. 4 - Prob. 4.18E Ch. 4 - Prob. 4.19E Ch. 4 - Statement of cash flows; indirect method LO48...Ch. 4 - Statement of cash flows; direct method LO48 Refer...Ch. 4 - Prob. 4.22E Ch. 4 - Prob. 4.23E Ch. 4 - Concepts; terminology LO41, LO42, LO43, LO44,...Ch. 4 - Inventory turnover; calculation and evaluation ...Ch. 4 - Evaluating efficiency of asset management LO410...Ch. 4 - Profitability ratios LO410 The following...Ch. 4 - Prob. 4.28E Ch. 4 - Prob. 4.29E Ch. 4 - Prob. 4.30E Ch. 4 - Prob. 4.31E Ch. 4 - Prob. 4.32E Ch. 4 - Comparative income statements; multiple-step...Ch. 4 - Discontinued operations LO44 The following...Ch. 4 - Income statement presentation; Discontinued...Ch. 4 - Restructuring costs; Discontinued operations;...Ch. 4 - Income statement presentation; Restructuring...Ch. 4 - Income statement presentation; Discontinued...Ch. 4 - Income statement presentation; statement of...Ch. 4 - Multiple-step statement of income and...Ch. 4 - Statement of cash flows LO48 The Diversified...Ch. 4 - Integration of financial statements; Chapters 3...Ch. 4 - Statement of cash flows; indirect method LO48...Ch. 4 - Calculating activity and profitability ratios ...Ch. 4 - Use of ratios to compare two companies in the same...Ch. 4 - Creating a balance sheet from ratios; Chapters 3...Ch. 4 - Prob. 4.15P Ch. 4 - Interim financial reporting Appendix 4 Branson...Ch. 4 - Prob. 4.1BYP Ch. 4 - Judgment Case 42 Restructuring costs LO43 The...Ch. 4 - Prob. 4.3BYP Ch. 4 - Prob. 4.4BYP Ch. 4 - Prob. 4.5BYP Ch. 4 - Prob. 4.6BYP Ch. 4 - Prob. 4.7BYP Ch. 4 - IFRS Case 48 Statement of cash flows;...Ch. 4 - Judgment Case 49 Income statement presentation;...Ch. 4 - Prob. 4.10BYP Ch. 4 - Integrating Case 412 Balance sheet and income...Ch. 4 - Prob. 4.13BYP Ch. 4 - Prob. 4.17BYP Ch. 4 - Prob. 4.18BYP Ch. 4 - Continuing Cases Target Case LO43, LO44, LO46,...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Solution Summary: The author explains how to prepare the operating activities section of Corporation C for 2018 under the indirect method of Cash Flows Statement.

Concept explainers

Videos

Want to see the full answer?

Chapter 4 Solutions