Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 6, Problem 6.25BE
Statement of
| Tennis Emporium Statement of Net Income for the Current Year Ended | Amount |
| Sales | $767,000 |
| (52,000) | |
| Selling, General, and Administrative Expanses | (688,000) |
| Operating Income | 27,000 |
| Tax Expense | (6,000) |
| Net Income | $21,000 |
| Changes in |
|
| Increase in |
$10,000 |
| Increase in Accounts Payable (Related to Selling, General, and Administrative Expenses) | $ 5,000 |
| Decrease in Income Taxes Payable | $ 3,000 |
Compute the net cash flow from operating activities for Tennis Emporium under the indirect reporting format.
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Subject: acounting
Hampton Company reports the following information for its recent calendar year.
Selected Year-End Balance Sheet Data
Accounts receivable increase
$ 77,000
Inventory decrease
41,000 Salaries payable increase
12,000
4,000
$ 20,000
Income Statement Data
Sales
Expenses:
Cost of goods sold
Salaries expense
Depreciation expense
Net income
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method.
Note: Amounts to be deducted should be indicated with a minus sign.
Statement of Cash Flows (partial)
Cash flows from operating activities-indirect method
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
$ 5,000
5,000
900
Changes in current operating assets and liabilities
Apex Company prepared the statement of cash flows for the current year that is shown below:
Apex CompanyStatement of Cash Flows—Indirect Method
Operating activities:
Net income
$ 40,400
Adjustments to convert net income to cash basis:
Depreciation
$ 20,200
Increase in accounts receivable
(60,900)
Increase in inventory
(25,100)
Decrease in prepaid expenses
9,600
Increase in accounts payable
53,700
Decrease in accrued liabilities
(10,500)
Increase in income taxes payable
4,300
(8,700)
Net cash provided by (used in) operating activities
31,700
Investing activities:
Proceeds from the sale of equipment
15,200
Loan to Thomas Company
(41,100)
Additions to plant and equipment
(121,100)
Net cash provided by (used in) investing activities
(147,000)
Financing activities:
Increase in bonds payable
89,700
Increase in common stock
39,300
Cash dividends
(29,600)
Net cash provided by (used in) financing…
Chapter 6 Solutions
Intermediate Accounting (2nd Edition)
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