Cash Flows from Operating Activities-Indirect MethodThe net income reported on the income statement for the current year was $277,000. Depreciation recorded on equipment and a building amounted to $82,800 for the year. 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 YearCash$74,240$78,690Accounts receivable (net)94,14097,100Inventories185,600167,290Prepaid expenses10,32011,100Accounts payable (merchandise creditors)82,93087,820Salaries payable11,95010,940a. Prepare the Cash Flows from 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)Cash flows from operating activities:Adjustments to reconcile net income to net cash flow from operating activities:Changes in current operating assets and liabilities:Net cash flow from operating activitiesb. If the direct method had been used, would the net cash flow from operating activities have been the same?

End of Year Beginning of Year $74,240 $78,690 punts receivable (net) 94,140 97,100 entories 185,600 167,290 maid expenses 10,320 11,100 punts payable (merchandise creditors) 82,930 87,820 ries payable 11,950 10,940 Prepare the Cash Flows from 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) sh flows from operating activities: justments to reconcile net income to net cash flow from operating activities: anges in current operating assets and liabilities: t cash flow from operating activities f the direct method had been used, would the net cash flow from operating activities have been the same?

End of Year Beginning of Year $74,240 $78,690 punts receivable (net) 94,140 97,100 entories 185,600 167,290 maid expenses 10,320 11,100 punts payable (merchandise creditors) 82,930 87,820 ries payable 11,950 10,940 Prepare the Cash Flows from 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) sh flows from operating activities: justments to reconcile net income to net cash flow from operating activities: anges in current operating assets and liabilities: t cash flow from operating activities f the direct method had been used, would the net cash flow from operating activities have been the same?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 6E

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Reporting changes in equipment on statement of cash flows An analysis of the general ledger accounts indicates that office equipment, which cost 245,000 and on which accumulated depreciation totaled 112,500 on the date of sale, was sold for 105,900 during the year. Using this information, indicate the items to be reported on the statement of cash flows.
Cash flows from operating activitiesindirect method The net income reported on the income statement for the current year was 93,700. Depreciation recorded on store equipment for the year amounted to 31,200. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: a. Prepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method. b. Briefly explain why net cash flow from operating activities is different than net income.
COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Powell Companys condensed income statement for the year ended December 31, 20-2, was as follows: Additional information obtained from Powells comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows: Depreciation expense for 20-2, included in operating expenses on the income statement, was 29,000. REQUIRED Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2.
Statement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income, 68,000 b. Increase in accounts receivable, 4,400 c. Receipt from sale of common stock, 12,300 d. Depreciation expense, 11,300 e. Dividends paid, 24,500 f. Payment for purchase of building, 65,000 g. Bond discount amortization, 2,700 h. Receipt from sale of long-term investments at cost, 10,600 i. Payment for purchase of equipment, 8,000 j. Receipt from sale of preferred stock, 20,000 k. Increase in income taxes payable, 3,500 l. Payment for purchase of land, 9,700 m. Decrease in accounts payable, 2,900 n. Increase in inventories, 10,300 o. Beginning cash balance, 18,000 Required: Prepare Mueller Company's statement of cash flows.
COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Horn Companys condensed income statement for the year ended December 31, 20-2, was as follows: Additional information obtained from Horns comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows: Depreciation expense for 20-2, included in operating expenses on the income statement, was 32,000. REQUIRED Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2.
COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Horn Companys condensed income statement for the year ended December 31, 20-2, was as follows: Additional information obtained from Horns comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows: Depreciation expense for 20-2, included in operating expenses on the income statement, was 32,000. REQUIRED Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. SCHEDULE FOR CALCULATION OF CASH GENERATED FROM OPERATING ACTIVITIES Using the information provided in Problem 23-9A for Horn Company, prepare the following: 1. A schedule for the calculation of cash generated from operating activities for Horn Company for the year ended December 31, 20-2. 2. A partial statement of cash flows for Horn Company reporting cash from operating activities under the direct method for the year ended December 31, 20-2.
Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $294,100. Depreciation recorded on equipment and a building amounted to $87,900 for the year. 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 Cash $75,580 $80,110 Accounts receivable (net) 95,840 98,860 Inventories 188,950 170,310 Prepaid expenses 10,510 11,300 Accounts payable (merchandise creditors) 84,420 89,400 Salaries payable 12,170 11,140 a. Prepare the Cash Flows from 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) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current…
Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $277,600. Depreciation recorded on equipment and a building amounted to $83,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Endof Year Beginningof Year Cash $77,450 $82,100 Accounts Recievable (net) 98,210 101,310 Inventories 193,630 174,540 Prepaid Expenses 10,770 11,580 Accounts Payable (merchandise creditors) 86,510 91,620 Salaries Payable 12,470 11,410 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) Cash flows from (used for) operating activities: - Net income $ Adjustments to reconcile net income to net cash flows from (used…
Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $259,600. Depreciation recorded on equipment and a building amounted to $77,600 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Endof Year Beginningof Year Cash $66,980 $71,000 Accounts receivable (net) 84,930 87,610 Inventories 167,450 150,950 Prepaid expenses 9,310 10,010 Accounts payable (merchandise creditors) 74,820 79,240 Salaries payable 10,780 9,870 Question Content Area 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) Cash flows from (used for) operating activities: $- Select - Adjustments…
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $251,100. Depreciation recorded on equipment and a building amounted to $75,100 for the year. 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 Cash $63,280 $66,440 Accounts receivable (net) 80,240 81,990 Inventories 158,200 141,250 Prepaid expenses 8,800 9,370 Accounts payable (merchandise creditors) 70,680 74,150 Salaries payable 10,190 9,240 a. Prepare the "Cash Flows from 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.
Cash flows from (used for) operating activities-indirect method The net income reported on the income statement for the current year was $278,700. Depreciation recorded on equipment and a building amounted to $83,300 for the year. 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 $75,250 Cash Accounts receivable (net) Inventories $79,770 95,420 98,440 188,130 169,590 Prepaid expenses 10,460 11,250 Accounts payable (merchandise creditors) Salaries payable 84,050 12,120 89,020 11,090 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 Amount Amount Cash flows from (used for) operating activities: Net income 278.700✔ Adjustments to reconcile net income to…
Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $214,200. Depreciation recorded on equipment and a building amounted to $64,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Endof Year Beginningof Year Cash $55,050 $58,350 Accounts receivable (net) 69,800 72,000 Inventories 137,630 124,050 Prepaid expenses 7,650 8,230 Accounts payable (merchandise creditors) 61,490 65,120 Salaries payable 8,860 8,110 Question Content Area 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. blankStatement of Cash Flows (partial)blank Cash flows from (used for) operating activities: $- Select -…