Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 6, Problem 6.26BE
Statement of
BE6-25. Statement of Cash Flows, Indirect Method. Tennis Emporium provided the following information for the current year.
| 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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Using the Exhibit below, assume that the depreciation expense on the Income Statement for the year was $38,000. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of depreciation expense on the Cash flow from operating activities section?
EXHIBIT
Increase
(Decrease)
Net Income (loss) $XXX
Adjustments to reconcile net income to net cash flow
from operating activities:
Depreciation of fixed assets XXX
Losses on disposal of assets XXX
Gains on disposal of assets (XXX)
Changes in current operating assets and liabilities:…
it is about constructing cash flow statement using indirect method, how is it get the 45? And please explain the calculation.
Chapter 6 Solutions
Intermediate Accounting (2nd Edition)
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