Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter C, Problem 5QC
To determine
Compute the amount of cash provided by operating activities (Indirect method).
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Burch Company
Income Statement
For the year ended December 31
Sales
$250,000
Cost of goods sold
(160,000)
Depreciation expense
(26,400)
Other expenses
(35,000)
Income tax expense
(12,000)
Net income
$16,600
Required:
Compute the net cash flows from operating activities using the indirect method.
33,200 X
Print Item
Use the following information from Albuquerque Company's financial statements:
Net income
$328,000
Change in accumulated depreciation
(no sale of depreciable assets this year)
26,200
Loss on sale of company truck
9,500
Determine operating net cash flows (indirect method).
Use the indirect method to determine Anka Company’s net cash provided or used for operating activities using the below information:
Net income
$15,200
Depreciation expense
10,000
Cash payment on long-term note payable
8,000
Gain on sale of equipment
3,000
Increase in inventory
1,500
Increase in accounts payable
2,850
Group of answer choices
$15,550
$42,400
($4,450)
$23,550
Chapter C Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Prob. 6TICh. C - Prob. 7TICh. C - Prob. 8TICh. C - Muench Inc.s accountant has partially completed...Ch. C - Prob. 1QC
Ch. C - Prob. 2QCCh. C - Prob. 3QCCh. C - Prob. 4QCCh. C - Prob. 5QCCh. C - Prob. 6QCCh. C - Prob. 7QCCh. C - Prob. 8QCCh. C - Prob. 9QCCh. C - Prob. 10QCCh. C - Prob. 1RQCh. C - Prob. 2RQCh. C - Prob. 3RQCh. C - Prob. 4RQCh. C - Prob. 5RQCh. C - Prob. 6RQCh. C - Prob. 7RQCh. C - If a company experienced a loss on disposal of...Ch. C - Prob. 9RQCh. C - Prob. 10RQCh. C - Prob. 11RQCh. C - Prob. 12RQCh. C - Prob. 13RQCh. C - Prob. 14RQCh. C - How does the direct method differ from the...Ch. C - Prob. 16RQCh. C - Prob. 1SECh. C - Prob. 2SECh. C - Prob. 3SECh. C - DVR Equipment, Inc. reported the following data...Ch. C - Prob. 5SECh. C - Prob. 6SECh. C - Prob. 7SECh. C - Prob. 8SECh. C - Prob. 9SECh. C - Julie Lopez Company expects the following for...Ch. C - Prob. 11SECh. C - Prob. 12SECh. C - Prob. 13SECh. C - Prob. 14SECh. C - Prob. 15SECh. C - Prob. 16ECh. C - Prob. 17ECh. C - Prob. 18ECh. C - Prob. 19ECh. C - Prob. 20ECh. C - The income statement of Boost Plus, Inc. follows:...Ch. C - Prob. 22ECh. C - Rouse Exercise Equipment, Inc. reported the...Ch. C - Use the Rouse Exercise Equipment data in Exercise...Ch. C - Prob. 25ECh. C - Prob. 26ECh. C - Prob. 27ECh. C - Prob. 28ECh. C - Prob. 29ECh. C - Prob. 30ECh. C - Prob. 31ECh. C - American Rare Coins (ARC) was formed on January 1,...Ch. C - Prob. 33APCh. C - Prob. 34APCh. C - Prob. 35APCh. C - Boundary Rare Coins (BRC) was formed on January 1,...Ch. C - Use the Rolling Hills, Inc. data from Problem...Ch. C - Prob. 38APCh. C - Classic Rare Coins (CRC) was formed on January 1,...Ch. C - Accountants for Benson, Inc. have assembled the...Ch. C - Prob. 41BPCh. C - Prob. 42BPCh. C - Prob. 43BPCh. C - Use the Sweet Valley data from Problem P14-41B....Ch. C - Prob. 45BPCh. C - Prob. 47PCh. C - Before you begin this assignment, review the Tying...Ch. C - Prob. 1DCCh. C - Prob. 1EICh. C - Details about a companys cash flows appear in a...
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- Which item is added to net income when computing cash flows from operating activities? a. Gain on the disposal of property, plant, and equipment b. Increase in wages payable c. Increase in inventory d. Increase in prepaid rent Use the following information for Multiple-Choice Questions 11-9 and 11-10: Cornett Company reported the following information: cash received from the issuance of common stock, $150,000; cash received from the sale of equipment, $14,800; cash paid to purchase an investment, $20,000; cash paid to retire a note payable, $50,000; and cash collected from sales to customers, $225,000.arrow_forwardUse the following data from Albuquerque Company's financial statements to determine operating net cash flows (indirect method): Net income Change in accumulated depreciation (no sale of depreciable assets this year) Loss on sale of company truck $325,000 26,200 7,800arrow_forwardNeed Help.arrow_forward
- Statement of cash flows?arrow_forwardUse the following information and the indirect method to calculate the net cash provided or used by operating activities: Net income $13,300 Depreciation expense 13,000 Payment on mortgage payable 16,000 Gain on sale of land 7,300 Increase in merchandise inventory 3,050 Increase in accounts payable 7,150 Proceeds from the sale of land 8,500 a. $37,700. b. $15,600. c. $14,600. d. $30,400. e. $23,100.arrow_forwardUse the following information from Albuquerque Company's financial statements to determine operating net cash flows (indirect method): Net income Change in accumulated depreciation (no sale of depreciable assets this year) Loss on sale of company truck $325,000 26,200 7,800 HTML Editorp B IUA 工E喜 xx =E 田, ※ V G A V 回M1 12pt Paragrapharrow_forward
- Show Me How Cash flows from (used for) operating activities-indirect method The net income reported on the income statement for the current year was $123,400. Depreciation recorded on store equipment for the year amounted to $20,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Chapter 14 Homework eBook Cash Accounts receivable (net) $49,480 $45,520 35,480 33,640 Inventories 48,440 51,210 Prepaid expenses 5,440 4,320 Accounts payable (merchandise creditors) Wages payable 46,360 43,060 25,330 28,130 a. Prepare the "Cash flows from (used for) operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Line Item Description Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to…arrow_forwardCash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $147,000. Depreciation recorded on store equipment for the y amounted to $24,300. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year $59,090 $53,770 Cash Accounts receivable (net) 42,370 39,740 57,850 60,490 Inventories 6,500 5,110 Prepaid expenses 55,370 50,870 Accounts payable (merchandise creditors) 30,250 33,230 Wages payable a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the indirect method. Use the minus sigr indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.arrow_forwardNet Cash Provided by Operating Activities Wiley Company’s income statement for Year 2 follows: The company’s selling and administrative expense for Year 2 includes $7,500 of depreciation expense. Selected balance sheet accounts for Wiley at the end of Years 1 and 2 are as follows: Required: 1. Using the direct method, convert the company’s income statement to a cash basis. 2. Assume that during Year 2 Wiley had a $9,000 gain on sale of investments and a $3,000 loss on the sale of equipment. Explain how these two transactions would affect your computations in (1) above.arrow_forward
- Tyler Company has net income of $49,000 and the following items: Depreciation Expense $ 5,000 Accounts Receivable increase 2,000 Inventory increase 10,000 Accounts payable decrease 4,000 Using the indirect method, what is Tyler's cash flow from operating activities? Select one: a. $38,000 b. $46,000 c. $58,000 d. $42,000arrow_forwardUse the following information from Albuquerque Company’s financial statements to determine operating net cash flows using the indirect method. Net income $380,895 Change in accumulated depreciation (no sale of depreciable assets this year) $42,172 Loss on sale of company truck $5,967arrow_forwardThe income statement shows depreciation expense of $25,000. How is the expense handled when computing net cash provided by operating activities? Question 6 options: Added in cash provided by operating activities Subtracted from cash provided by operating activities Can ignore, it is included in the net income amount Reported in a note to the statement not within the statementarrow_forward
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