During 2014, Whitefish Industries reported net income of $49,000, paid a cash dividend of $32,000. and recognized a $5,000 loss on the sale of old machinery. On the sale date, there was $4,000 of accumulated depreciation on the old machinery. Here are data regarding changes in Whitefish's balance sheet accounts during 20Y4: Accounts receivable $8,000 decrease Prepaid insurance expense $6,000 increase Accumulated depreciation $15,000 increase Accrued wages expense $2,000 increase Bonds payable $40,000 increase Based on the information provided, what is Whitefish's net cash provided by operating activities? O $73,000 O $75,000 O $77,000 O $79.000 $81,000

During 2014, Whitefish Industries reported net income of $49,000, paid a cash dividend of $32,000. and recognized a $5,000 loss on the sale of old machinery. On the sale date, there was $4,000 of accumulated depreciation on the old machinery. Here are data regarding changes in Whitefish's balance sheet accounts during 20Y4: Accounts receivable $8,000 decrease Prepaid insurance expense $6,000 increase Accumulated depreciation $15,000 increase Accrued wages expense $2,000 increase Bonds payable $40,000 increase Based on the information provided, what is Whitefish's net cash provided by operating activities? O $73,000 O $75,000 O $77,000 O $79.000 $81,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The income statement disclosed the following items for the year: Depreciation expense $ 65,000Gain on disposal of equipment 27,500Net income 620,000 The changes in the current asset and liability accounts for the year are as follows: Increase(Decrease)Accounts receivable $11,200Inventory (6,350)Prepaid insurance (1,200)Accounts payable (4,200)Income taxes payable 1,650Dividends payable 2,500a. Prepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method.b. Briefly explain why net cash flows from operating activities is different from net income.
The income statement disclosed the following items for the year: Line Item Description Amount Depreciation expense $43,900 Gain on disposal of equipment 25,610 Net income 292,200 The changes in the current asset and liability accounts for the year are as follows: Line Item Description Increase (Decrease) Accounts receivable $6,840 Inventory (3,890) Prepaid insurance (1,460) Accounts payable (4,640) Income taxes payable 1,460 Dividends payable 1,020 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 out flows, cash payments, decreases in cash, or any negative adjustments. blankStatement of Cash Flows (partial) Line Item Description Amount Amount Cash flows from (used for) operatingactivities: $Net income Adjustments to reconcile net incometo net cash flows from (used for) operating…
The income statement disclosed the following items for the year: Depreciation expense $40,700 Gain on disposal of equipment 23,760 Net income 254,700 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $6,340 Inventory (3,610) Prepaid insurance (1,350) Accounts payable (4,300) Income taxes payable 1,350 Dividends payable 950 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: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Net cash flows from operating activities b. Why is net cash flows from operating activities different than net income? Cash flows…
Norbury Corporation's net income last year was $19,000. The company did not sell or retire any property, plant, and equipment last year. Changes in selected balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: $ 13,000 $ (3,500) $ 8,500 $ 23,000 Accounts receivable Inventory Prepaid expenses Accumulated depreciation Liability Accounts: Accounts payable $ 12,500 $ (8,000) $ 2,600 Accrued liabilities Income taxes payable Based solely on this information, the net cash provided by (used in) operating activities under the indirect method on the statement of cash flows would be:
Assume a company had net income of $61,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: Accounts receivable $ 46,000 $ 46,000 Inventory $ 53,000 $ 53,000 Current liabilities: Accounts payable $ 44,000 $ 49,000 Income taxes payable $ 10,000 $ 14,000 If the company did not sell any noncurrent assets during the period and its depreciation charges for the period were $21,000, then based solely on the information provided, the net cash provided by operating activities would be: Multiple Choice $49,000. $31,000. $73,000. $91,000.
The income statement disclosed the following items for the year: Depreciation expense $53,200 Gain on disposal of equipment 31,010 Net income 419,900 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $8,280 Inventory (4,710) Prepaid insurance (1,770) Accounts payable (5,610) Income taxes payable 1,770 Dividends payable 1,240 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 out flows, cash payments, decreases in cash, or any negative adjustments.
The income statement disclosed the following items for the year: Depreciation expense $57,400 Gain on disposal of equipment 33,510 Net income 494,300 The changes in the current asset and liability accounts for the year are as follows: Increase(Decrease) Accounts receivable $8,950 Inventory (5,090) Prepaid insurance (1,910) Accounts payable (6,070) Income taxes payable 1,910 Dividends payable 1,340 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.
The income statement disclosed the following items for the year: Depreciation expense $57,000 Gain on disposal of equipment 24,000 Net income 542,000 The changes in the current asset and liability accounts for the year are as follows: Increase(Decrease) Accounts receivable $9,800 Inventory (5,550) Prepaid insurance (1,000) Accounts payable (3,700) Income taxes payable 1,440 Dividends payable 2,200 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.
Samuel company’s accumulated depreciation - equipment increased by $6,000, while patents decreased by $2,200 between balance sheet dates. There were no purchases or sales of depreciable or intangible assists during the year. In addition, the income statement showed a loss of $3,200 from sale of investment la l. Assume no changes in non cash current assists and liabilities. Reconcile a net income of 92,000 to net cash flow from operating activities.
Whispering Winds Corp. had net income of $818800 for the year ending 12/31/2022. Depreciation expense for 2022 is $101200. During the year, accounts receivable and inventory increased $55200 and $147200, respectively. Prepaid expenses and accounts payable decreased $7360 and $14720, respectively. There was also a loss on the sale of equipment of $11040. How much cash was provided by operating activities in 2022? $721280. $1037760. $993600. $699200.
Zaire Company had a $26,000 net loss from operations. Depreciation expense for the year was $9,600, and a dividend of $2,000 was declared and paid. The balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End Beginning Cash $3,500 $7,000 Accounts receivable 16,000 27,000 Inventory 51,000 53,000 Prepaid expenses 5,000 9,000 Accounts payable 12,000 8,000 Accrued liabilities 6,000 7,600 Did Zaire Company’s operating activities provide or use cash? Use the indirect method to determine your answer. Use negative signs with cash outflow answers and to indicate operating activities used cash, if applicable.
The income statement disclosed the following items for the current year: Depreciation expense $36,000 Gain on disposal of equipment 21,000 Net income 317,500 Balances of the current assets and current liabilities accounts changed between December 31, last year, and December 31, this year, as follows: Increase in accounts receivable $5,600 Decrease in inventory 3,200 Decrease in prepaid insurance 1,200 Decrease in account payable 3,800 Increase in income taxes payable 1,200 Increase in dividends payable 850 Required: 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. Operating Activities Section