Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 6, Problem 6.7E
Statement of
| Tulsa Corporation Statement of Net Income for the Current Year Ended |
|
| Sales | $45,700 |
| (1,800) | |
| Selling, General, and Administrative Expenses | (21,000) |
| Loss on Sale of Equipment | (3,000) |
| Other Income | 400 |
| Income before Taxes | 20,300 |
| Tax Expense | (6,090) |
| Net Income | $14,210 |
| Changes in |
Amount |
| Decrease in |
$ 2,300 |
| Increase in Accounts Payable | 900 |
| Increase in Income Taxes Payable | 1,600 |
Compute the net cash flow from operating activities under the indirect reporting format.
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Subject: acounting
Reporting Net Cash Flow from Operating Activities
The following information is available for Bernard Corporation:
Net income
$189,000
Decrease in income taxes payable
$4,270
Decrease in accounts receivable
6,800
Increase in notes payable (due in 5 years)
50,000
Increase in inventory
18,300
Depreciation expense
44,700
Decrease in prepaid rent
2,100
Loss on disposal of equipment
11,000
Increase in salaries payable
4,410
Required:
Compute the net cash flows from operating activities using the indirect method.
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
Chapter 6 Solutions
Intermediate Accounting
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