Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 16, Problem E16.21E
Preparing the statement of cash flows—indirect method
Learning Objective 2
Net Cash Prov. by Op Act $98 000
The income statement of Boost Plus, Inc. follows:
BOOST PLUS. INC. Income Statement Year Ended September 30, 2018 |
||
Net Sales Revenue | S 231,000 | |
Cost of Goods Sold | 94,000 | |
Gross Profit | 137,000 | |
Operating Expenses: | ||
Salaries Expense | $ 54,000 | |
27,000 | ||
Total Operating Expenses | 81,000 | |
Net Income Before Income Taxes | 56,000 | |
Income Tax Expense | 3,000 | |
Net Income | $ 53,000 |
Additional data follow:
- Acquisition of plant assets is $124,000. Of this amount, $108,000 is paid in cash and $16,000 by signing a note payable
- Cash receipt from sale of land totals $20,000. There was no gain or loss.
- Cash receipts from issuance of common stock total $36,000.
- Payment of notes payable is $15,000.
- Payment of dividends is $5,000. f From the balance sheet:
September 30 | ||
2018 | 2017 | |
Cash | $ 39,000 | $ 13,000 |
Accounts Receivable | 46,000 | 61,000 |
Merchandise Inventory | 94,000 | 88,000 |
Land | 82,000 | 102,000 |
Plant Assets | 214,000 | 90,000 |
(61,000) | (34,000) | |
Accounts Payable | 32,000 | 15,000 |
Accrued Liabilities | 12,000 | 20,000 |
Notes Payable (long-term) | 16,000 | 15,000 |
Common Stock, no par | 40,000 | 4,000 |
Retained Earnings | 314,000 | 266,000 |
Prepare Boost Plus's statement of cash flows for the year ended September 30, 2018, using the indirect method Include a separate section for non-cash investing and financing activities
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Sales
CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
Cost of goods sold
Gross profit
Operating expenses (excluding depreciation)
Depreciation expense
Income before taxes
Income taxes expense
Net income
$ 332,400
213,900
118,500
60,700
25,600
32,200
11,800
$ 20,400
Required:
Use the indirect method to prepare the operating activities section of Cruz's statement of cash flows.
Navigation:
1. Use the Open Excel in New Tab button to launch this question.
2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.
☑
Open Excel in new tab
Activate
Question Content Area
If a gain of $5,236 is realized in selling (for cash) office equipment having a book value of $63,923, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
a.$69,159
b.$58,687
c.$63,923
d.$5,236
Free Cash Flow
The following information is from the financial statements of Evans & Sons.
Cash flow from operating activities $1,600,000
Capital expenditures
850,000
Current liabilities, beginning of year
300,000
Current liabilities, end of year
380,000
Calculate the free cash flow for Evans & Sons.
$ 0
Chapter 16 Solutions
Horngren's Accounting (12th Edition)
Ch. 16 - Prob. 1QCCh. 16 - Prob. 2QCCh. 16 - Prob. 3QCCh. 16 - Prob. 4QCCh. 16 - Prob. 5QCCh. 16 - The Plant Assets account and Accumulated...Ch. 16 - Mountain Water Corp issued common stock of $28,000...Ch. 16 - Prob. 8QCCh. 16 - Maxwell Furniture Center had accounts receivable...Ch. 16 - Prob. 10BQC
Ch. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - Prob. 3RQCh. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Prob. 6RQCh. 16 - Prob. 7RQCh. 16 - Prob. 8RQCh. 16 - Prob. 9RQCh. 16 - Prob. 10RQCh. 16 - Prob. 11RQCh. 16 - Prob. 12RQCh. 16 - Prob. 13RQCh. 16 - Prob. 14RQCh. 16 - Prob. 15ARQCh. 16 - Prob. 16BRQCh. 16 - Prob. S16.1SECh. 16 - S16-2 Classifying items on the statement of cash...Ch. 16 - Prob. S16.3SECh. 16 - Prob. S16.4SECh. 16 - Prob. S16.5SECh. 16 - Prob. S16.6SECh. 16 - Prob. S16.7SECh. 16 - Prob. S16.8SECh. 16 - Prob. S16.9SECh. 16 - Prob. S16.10SECh. 16 - Preparing a statement of cash flows using the...Ch. 16 - Prob. S16A.12SECh. 16 - Prob. S16A.13SECh. 16 - Prob. S16A.14SECh. 16 - Prob. S16B.15SECh. 16 - Prob. E16.16ECh. 16 - Prob. E16.17ECh. 16 - Classifying items on the indirect statement of...Ch. 16 - Prob. E16.19ECh. 16 - Prob. E16.20ECh. 16 - Preparing the statement of cash flows—indirect...Ch. 16 - Prob. E16.22ECh. 16 - E16-23 Computing the cash effect Learning...Ch. 16 - Preparing the statement of cash flows—indirect...Ch. 16 - Identifying and reporting non-cash transactions...Ch. 16 - Prob. E16.26ECh. 16 - Prob. E16A.27ECh. 16 - Prob. E16A.28ECh. 16 - Computing cash flow items—direct method Learning...Ch. 16 - Prob. E16A.30ECh. 16 - Prob. E16B.31ECh. 16 - Prob. P16.32APGACh. 16 - Prob. P16.33APGACh. 16 - Prob. P16.34APGACh. 16 - Prob. P16.35APGACh. 16 - Preparing the statement of cash flows—direct...Ch. 16 - Prob. P16A.37APGACh. 16 - Prob. P16B.38APGACh. 16 - Prob. P16.39BPGBCh. 16 - Prob. P16.40BPGBCh. 16 - Prob. P16.41BPGBCh. 16 - Prob. P16.42BPGBCh. 16 - Prob. P16A.43BPGBCh. 16 - Prob. P16A.44BPGBCh. 16 - Prob. P16B.45BPGBCh. 16 - Prob. P16.46CTCh. 16 - Prob. P16.47CPCh. 16 - Prob. 16.1TIATCCh. 16 - Decision Case 16-1 Theater by Design and Show...Ch. 16 - Ethical Issue 16-1 Moss Exports is having a bad...Ch. 16 - Prob. 16.1FSC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- DEVELOPMENT E-LIBRARY ZAIN HANDBOOKS Triton Corp reported net income of $207,200, including depreciation expense of $63,000. The company sold investments for $8,400 that had a cost of $25,200. Accounts receivable decreaşed $35,000 and accounts payable increased $32,200. What amount did Triton report as net cash provided by operating activities? O a. $186.200. O b. $219.200. O c. $228,200. O d. $354,200. Next pag О Help РОСОРНONЕ 10:06 AM SHOT ON POCOPHONE F1 11/3/2021arrow_forwardQS 12-6 (Algo) Indirect: Computing cash from operations LO P2 NOSS COMPANY Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net Income NOSS COMPANY Selected Balance Sheet Information 2021 Current assets Accounts receivable Inventory Current liabilities Accounts payable Income taxes payable $ 94,650 35,000 70,000 Cash flows from operating activities: 50,400 3,050 $ 584,000 371,600 2020 Changes in current operating assets and liabilities 212,400 132,000 56,000 24,400 13,300 $ 11,100 $36,800 52,000 56,100 Use the information above to calculate cash flows from operating activities using the indirect method (Amounts to be deducted should be Indicated by a minus sign.) 35,700 4,200 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash S 56,000 S 56,000 56,000arrow_forwardGiven the following financial statement information: $ in millions Income Statement Net Income: $559 Depreciation Expense: $55 Balance Sheet Dec. 31, 2022 Accounts Receivable $38 Total Inventory $122 Accounts Payable $79 Calculate the cash from operating activities. Your Answer: Dec. 31, 2023 $64 $152 $108arrow_forward
- Write a cash flow for this income statement Genuises School Income Statement For year ended June 30,2025 Profits & Loss Yearly Total Revenues Tuition Fees (Books+Resources+Uniform) Fees 829,500 OMR 693,000 OMR 136,000 OMR Less cost of Revenues Website & software Science Lab resources Library resources IT Lab Resources Offices Furniture IB License 400,000 OMR Gross Profit 429,000 OMR Less Expenses Salaries 184,800 OMR Advertising & marketing 1000 OMR Utilities(Electricity,Water,Internet service &Telephone Bill) 2400 OMR Loan Payments 12,000 OMR Rent expense+accamodation 60,000 OMR Repair & Maintenance 500 OMR Stationary & Printing 500 OMR Petrol 960 OMR Software 1000 OMR Insurance 4800 OMR Total expenses 267,000OMR Net Profit (Net Income) 162,000 OMRarrow_forwardeBook Show Me How Question Content Area Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $132,100. Depreciation recorded on store equipment for the year amounted to $21,800. 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 $51,250 $46,640 Accounts receivable (net) 36,750 34,470 Merchandise inventory 50,170 52,470 Prepaid expenses 5,640 4,430 Accounts payable (merchandise creditors) 48,020 44,120 Wages payable 26,240 28,820 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 operating activities:…arrow_forwardBrief Exercise 11-30 (Algorithmic) Determining Net Cash Flow from Investing Activities Orlando Inc. reported the following information: 12/31/2019 12/31/2018 Furniture $46,000 $32,000 Accumulated depreciation 15,900 12,500 Investment (Iong-term) 38,000 50,000 In addition, Orlando sold furniture costing $13,900 with accumulated depreciation of $8,340 for $6,450. Orlando also reported a $1,400 gain on the sale of long-term investments. Required: Compute net cash flow from investing activities. Use a minus sign to indicate negative cash flows (outflows).arrow_forward
- ory Bookmarks Profiles Tab YouTube Mc Graw Hill ation.com/ext/map/index.html?_con=con&external_browser=0&launch Url=https%253A%252F%252FI... Classes N Netflix Dashboard EDU 1011 (2019-F... G Annotated Bibliog... 1 Required information [The following information applies to the questions displayed below.] 10 Q A Expenses prior years follow. Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and S (2 LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net income 2 2 At December 31 Accounts receivable Inventory Accounts payable Salaries payable SOF Utilities payable Prepaid insurance Prepaid rent W S # Window Help 3 LANSING COMPANY Selected Balance Sheet Accounts 20 F3 □ (20 (2 E D $ 4 $ 127,200 Current Year $ 6,600 2,980 5,400 1,080 OOD DOD F4 52,000 17,000 28,000 10,000 R 4,800…arrow_forwardFree Cash Flow The following information is from the financial statements of Smith & Sons. Cash flow from operating activities $600,000 Capital expenditures 340,000 Current liabilities, beginning of year 120,000 Current liabilities, end of year 144,000 Calculate the free cash flow for Smith & Sons. $0arrow_forwardInstructions: Prepare a statement of cash flows for the year ended December 31, Problem 2 SATT KEXLER COMPANY efhiogitarorT 13,000 Comparative Balance Sheet 18,000 iosgu14,000ot 9,000 ba Dec. 2021 fon ai Dec. 2020 armald Assets etnlog-30 $28,000 Cash Accounts receivable Prepaid expenses Inventory Long-term investments Equipment Accumulated depreciation-equipment Total assets tye 25,000ntne 15,000 rot Inova oreahtnolen0-t 18,000 ol 30,000 (14,000) baimenydr no 7:000 60,000 (18,000) $85,000 50S ynune120,000 Liabilities and Stockholders' Equity $ 25,000 37,000 40,000 18,000 $120,000 1. Net income for the year ending December 31, 2021, was $25.000. 2. Cash dividends of $17,000 were declared and paid during the year. Accounts payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 7,000 45,000 23,000 10,000 o lsu $85,000 Additional information: Long-term investments that had a book value of $18,000 were sold for $18.000. 4. There is no sale of…arrow_forward
- A company reported the following information: 2020 2019 Accounts receivable $50,000 $65,000 Inventories 43,000 40,000 Accounts payable 29,000 39,000 Net income 100,000 Depreciation expense 11,000 If the indirect method is used to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 2020? a.$92,000 b.$109,000 c.$111,000 d.$113,000arrow_forwardComputing cash flows for investing and financing activities Consider the following facts for Java Jolt: Beginning and ending Retained Earnings arc $45,000 and $70,000, respectively, Net income for the period is $60,000. Beginning and ending Plant Assets arc $124,500 and $134,500, respectively. Beginning and ending Accumulated Depreciation—Plant Assets are $21,500 and $26,500, respectively. Depreciation Expense for the period is $17,000, and acquisitions of new plant assets total $29,000. Plant assets were sold at a $5,000 gain. Requirements How much are cash dividends? What was the amount of the cash receipt from the sale of plant assets?arrow_forwardGiven the following financial statement information: $ in millions Income Statement Net Income: $578 Depreciation Expense: $50 Balance Sheet Accounts Receivable Total Inventory Dec. 31, 2022 $38 $112 Accounts Payable $85 Calculate the cash from operating activities. Dec. 31, 2023 $63 $157 $108arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningExcel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY