Explanation Cash Flow Statement: Cash flow statement refers to the financial statement that shows the summary of increase or decrease in cash in a company for a particular period of time. Cash can be increased or decreased through three activities that are operating, investing and financing activities. Calculation of net cash flow is: T Corporation Partial statement of cash flows For the current year ended Operating Activities Amount ($) Cash collected from customers (working note) 48,000 Cash paid to other suppliers (working note) (20,100) Cash received from other income 400 Cash paid for taxes (working note) (4,490) Net cash provided by operating activities 23,810 Table (1) Working Note: Calculation of cash collected from customers is:

2nd Edition

ISBN: 9780134730370

Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

Publisher: PEARSON

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Chapter 6, Problem 6.8E

To determine

The net cash flow from operating activities under the direct reporting format.

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Chapter 6, Problem 6.7E

Chapter 6, Problem 6.9E

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E6-7. Statement of Cash Flows, Indirect Method. Tulsa Corporation provided you with the following informa- tion for the current year. Tulsa Corporation Statement of Net Income For the Current Year Ended Sales $45,700 Depreciation Expense (1,800) Selling, General, and Administrative Expenses (21,000) Loss on Sale of Equipment (3,000) Other Income 400 Income before Taxes 20,300 Таx Expense (6,090) Net Income $14,210 Changes in Balance Sheet Accounts Amount Decrease in Accounts Receivable $ 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.

Selected data derived from the income statement and balance sheet of National Beverage Co. for a recent year are as follows: Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method for National Beverage Co. Interpret your results in part (a).

JSW Corp. reported net income on the income statement for the current year of $59,000. Depreciation recorded on fixed assets for the year was $24,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below. Prepare the cash flows from operating activities section of a statement of cash flows using the indirect method. End Beginning Cash $65,000 $ 70,000 Accounts receivable (net) 70,000 57,000 Inventories 86,000 102,000 Prepaid expenses 4,000 4,500 Accounts payable (merchandise creditors) 50,000 58,000 Cash dividends payable 4,500 6,500 Salaries payable 6,000 7,500 Statement of Cash Flows Cash Flows from Operating Activities: Net Income, per income statement $59,000 Add: Deduct:…

Chapter 6 Solutions

Intermediate Accounting (2nd Edition)

Ch. 6 - What are the limitations of the balance sheet?Ch. 6 - What does a firms liquidity measure?Ch. 6 - Prob. 6.3Q Ch. 6 - What are the four major components of stockholders...Ch. 6 - Prob. 6.5Q Ch. 6 - Prob. 6.6Q Ch. 6 - Where is accumulated other comprehensive income...Ch. 6 - Prob. 6.8Q Ch. 6 - Prob. 6.9Q Ch. 6 - What are the two main balance sheet formats?...

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The net cash flow from operating activities under the direct reporting format.

Solution Summary: The author explains that the net cash flow from operating activities under the direct reporting format is 23,810. Cash can be increased or decreased through operating, investing, and financing activities.

The net cash flow from operating activities under the direct reporting format.

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Chapter 6 Solutions