Consider the following: Net Income Depreciation Expense Gain on Sale of Land Increase in Inventory Increase in Wages Payable Payment of Dividends Calculate the net cash provided (or used) by operating activities using the indirect method. Select one: $51,900 36,000 22,500 6,150 18,450 6,000 A. $38,100 B. $77,700 C. $107,700 D. $71,700

Consider the following: Net Income Depreciation Expense Gain on Sale of Land Increase in Inventory Increase in Wages Payable Payment of Dividends Calculate the net cash provided (or used) by operating activities using the indirect method. Select one: $51,900 36,000 22,500 6,150 18,450 6,000 A. $38,100 B. $77,700 C. $107,700 D. $71,700

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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X company uses the indirect method to determine its cash flows from operating activities. Determine its net cash provided or used by operating activities, using the following information. Depreciation expense Net income Increase in inventory Cash payment on note payable Gain on sale of land Increase in accounts payable $100,000 $182,000 $18.000 $50.000 $30,000 $48.500 a. $282,500 provided by operating activities. b. $232,500 provided by operating activities. c. $182,500 provided by operating activities. d. $318,500 provided by operating activities.
Cash Received from: Sales to customers Interest on investment Collection of note receivable Sale of investments Issuance of notes payable Sale of long-term asset Issuance of equity Cash Paid for: Purchase of inventory Interest on notes payable Purchase of equipment Salaries to employees Operating expenses Dividends to stockholders Purchase of supplies Income and property taxes Purchase of property Repurchase of stock $ 475,000 6,000 50,000 30,000 202,000 40,000 228,000 $ 33,000 5,000 18,000 140,000 25,000 20,000 3,000 11,000 400,000 8,000 The balance of cash at the beginning of 2024 was $220,000. दे Required: Prepare a statement of cash flows for the year for Shepa Incorporated, (Hint. For operating, investing, and financing activities, list the inflows and subtract the outflows to calculate net cash flows for each type of activity.) Note: Amounts to be deducted should be indicated with a minus sign.
A draft statement of cash flows contains the following: £ i Profit before tax 22 ii Depreciation 8 iii Increase in inventories -4 iv Decrease in receivables -3 v Increase in payables -2 Net cash inflow from operating activities 21 Which Two of the following corrections needs to be made to the calculation? a. ii and v b. iv and iii c. i and ii d. iv and v
Use the following information and the indirect method to calculate the net cash provided or used by operating activitie $ 85,700 12,400 7,900 2,450 6,550 Net income Depreciation expense Gain on sale of land Increase in merchandise inventory Increase in accounts payable ↑ Multiple Choice VLC #m 3 E $94,300. d 54 L f O % 5 * 00 8 j 11 9 k X O
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11. When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is added to net income to compute cash provided by/used by operating activities? a. Increase in accounts receivable. b. Gain on sale of land. c. Depreciation of equipment. d. All of these are added to net income to arrive at cash flow from operating activities. Your answer is _________________
A B C D E xercise 2 Prepare a cash flow statement given the following information. Sales COGS Gross Profit Operating Exp. Rent Exp. Wage Exp. Depreciation Exp. Total Oper. Exp. Operating Income Gain on Sale Equip. Net Income 5 5 7 8 9 0 31 32 33 34 35 36 37 38 39 40 41 Your Co. Statement of Cash Flows Year Ending 20x9 Cash from Operations Jx Net Cash from Operations Cash from Investing Net Cash from Investing Cash from Financing Net Cash from Financing 80 320 40 800 160 640 440 200 120 320 X X X X X X X X X X X X X X X X X X F A/P decrease A/R increase Beg. cash balance. Bonds issued Dividends paid End. cash balance Inventory decrease Machine purchased Proceeds - sale of equipment Stock issued Wages payable increase G 40 80 96 800 16 440 120 1,600 320 400 200
If a gain of $8,520 is realized in selling (for cash) office equipment having a book value of $52,917, the total amount reported in the Cash flows from investing activities section of the statement of cash flows is a.$52,917 b.$44,397 c.$61,437 d.$8,520
B
The following information is for Leer Company: Using the direct method for operating cash flows, prepare Leer’s statement of cash flows.
How much is the ending cash balance?
Under the indirect method, how much should be reported as cash flows from operating activities? a. P 780,000b. P 550,000c. P 600,000d. P 750,000