FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text: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:
O
O
O
O
$51,900
36,000
22,500
6,150
18,450
6,000
A. $38,100
B. $77,700
C. $107,700
D. $71,700
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- Cash Flows from Operating Activities—Indirect Method Staley Inc. reported the following data: Net income $480,300 Depreciation expense 69,400 Loss on disposal of equipment 37,600 Increase in accounts receivable 10,300 Increase in accounts payable 10,300 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 out flows, cash payments, decreases in cash, or any negative adjustments. Staley Inc. Statement of Cash Flows (partial) Cash flows from operating activities: Net income $fill in the blank 2 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation fill in the blank 4 Loss on disposal of equipment fill in the blank 6 Changes in current operating assets and liabilities: Increase in accounts receivable fill in the blank 8 Increase in accounts payable fill in the blank 10 Net cash flow…arrow_forwardUsing Excel to Calculate Cash Flows from Operations Using the Indirect Method PROBLEM The following is financial information for three companies. Sales revenue Cost of goods sold Selling and administrative Depreciation expense Interest expense Income tax expense Dividends paid Increase /(Decrease) in Accounts receivable Inventory Property, plant, and equipment Accounts payable Interest payable Income tax payable Notes payable Common shares Blue spruce $ Marx Ltd. Tamarisk Ltd. 458,300 $ 689,500 $1,123,600 250,900 79,800 7,500 2,700 23,000 11,000 (2,900) 3,400 60,900 6,400 (1,400) 396,900 112,200 21,900 1,200 42,000 6,200 7,200 (10,100) (13,400) (10,500) 1,800 4,200 (2,800) 23,300 (47,800) 35,300 (4,400) 743,400 126,500 34,400 4,200 56,800 31,400 (9,900) 18,600 71,300 3,940 (500) 9,100 10,000 (95,200)arrow_forwardA 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 varrow_forward
- Need Help.arrow_forwardD. MATCHING In the following statement of cash flows, each letter represents a specific item which may appear on the statement, using the indirect method. Match the appropriate letter(s) with each transaction listed below. More than one letter may be used for each transaction. 1) 2) 3) 4) 5) 6) 7) 8) 9) Statement of Cash Flows Cash Flows from Operating Activities: Net Income Adjustments to Net Income: Add Deduct Cash Flows from Investing Activities Add Deduct Cash Flows from Financing Activities Add Deduct Significant Non-Cash Transactions Not on the Statement of Cash Flows (A) (B) (D) 30 000€ (H) Sold a short-term, available-for-sale investment at a gain. Temporarily borrowed money by signing a short-term, promissory trade notes payable. Treasury stock was purchased with cash. Declared cash dividends (but did not pay them yet). Purchased land by giving shares of common stock held in treasury. Amortized the premium on bonds payable. Paid off bonds payable before maturity and incurred a…arrow_forwardNeed answerarrow_forward
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