ces Hampton Company reports the following information for its recent calendar year. Income Statement Data Sales Selected Year-End Balance Sheet Data $ 160,000 Accounts receivable increase Inventory decrease. 100,000 Salaries payable increase 24,000 12,000 $ 24,000 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 $ 10,000 16,000 1,000 Changes in current operating assets and liabilities

ces Hampton Company reports the following information for its recent calendar year. Income Statement Data Sales Selected Year-End Balance Sheet Data $ 160,000 Accounts receivable increase Inventory decrease. 100,000 Salaries payable increase 24,000 12,000 $ 24,000 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 $ 10,000 16,000 1,000 Changes in current operating assets and liabilities

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Using the information from below make a statement of cash flows for the year ended december 31, 2020 using the indirect method.
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Prepare the operating activities section of the statement of cash flows for GreenGarden using the indirect method. Annual Income Statement Data Selected Year-End Balance Sheet Data Sales..... $50,000 Prepaid expenses increase.. $3,000 Expenses: Cost of goods sold.. Inventory increase Accounts payable decrease 30,000 500 1,000 Wages expense.. 10,000 Amortization expense. 1,500 Net income. $ 8,500
Cash Flow RatiosSpencer Company reports the following amounts in its annual financial statements: Cash flow from operating activities $90,000 Capital expenditures $59,500* Cash flow from investing activities (68,000) Average current assets 136,000 Cash flow from financing activities (8,500) Average current liabilities 102,000 Net income 42,500 Total assets 255,000 * This amount is a cash outflowa. Compute Spencer's free cash flow.b. Compute Spencer's operating-cash-flow-to-current-liabilities ratio.c. Compute Spencer's operating-cash-flow-to-capital-expenditures ratio. Round ratios to two decimal points. a. Free cash flow Answer b. Operating-cash-flow-to-current-liabilities ratio Answer c. Operating-cash-flow-to-current-expenditures ratio Answer
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