During the year the trading stock has increased by $4m, trade debtors have increased by $3m and trade creditors have increased by $5m. Prepare a statement of cash flow from operations. Write your answer clearly in the following table given. Cash flows from operating activities $m $m Profit before taxation Adjustment for items not involving a flow of cash Depreciation amortization gain or loss on disnosal of non.

During the year the trading stock has increased by $4m, trade debtors have increased by $3m and trade creditors have increased by $5m. Prepare a statement of cash flow from operations. Write your answer clearly in the following table given. Cash flows from operating activities $m $m Profit before taxation Adjustment for items not involving a flow of cash Depreciation amortization gain or loss on disnosal of non.

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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Sales Cost of goods sold Depreciation Other operating expenses Income tax Loss on sale of equipment Gain on sale of investment Net earnings and comprehensive income As at December 31 Cash Accounts receivable Inventory Equipment Less: accumulated depreciation Investment Total Accounts payable Income tax payable Bonds payable Common shares Retained earnings Total $193,800 25,400 76,100 43,800 3,000 (2,300) 20X2 $ 69,300 89,600 187,700 556,300 (231, 200) 54,700 $ 726,400 $ $510,000 339,800 $170, 200 20X1 $ 55,200 102, 600 175,400 475,400 (229,100) 79,000 $ 658,500 62,000 10,000 45,700 307, 200 301,500 $ 726,400 $ 658,500 $ 104,100 7,000 307, 200 240, 200 Additional information: During the year, equipment with an original cost of $99,800 was sold for cash.
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1. What is the cash flow statement using the indirect method? 2. What is the free cash flow for this year?
Cash Flows from Operating Activities—Indirect Method The income statement disclosed the following items for the year: Depreciation expense $53,700 Gain on disposal of equipment 31,310 Net income 391,700 The changes in the current asset and liability accounts for the year are as follows: Increase(Decrease) Accounts receivable $8,360 Inventory (4,760) Prepaid insurance (1,780) Accounts payable (5,670) Income taxes payable 1,780 Dividends payable 1,250 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. Statement of Cash Flows (partial) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on disposal of equipment Changes in current operating assets and…
Use the appropriate information from the data provided below to calculate the net cash provided (used) by operating activities for the period. Net income Accounts receivable increase (for the period) Inventory decrease (for the period) Proceeds from the issuance of long-term debt Accounts payable decrease (for the period) Purchases of equipment Depreciation and amortization expense $ 113,000 24,000 19,000 260,000 11,000 175,000 42,000
Using the Exhibit below, assume that the balance of Accounts Payable was $60,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Payable is $65,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts payable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of…
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Blossom Company reported net income of $148,500. For 2022, depreciation was $45,100, and the company reported a gain on sale of Investments of $12.100. Accounts recelvable increased $25,100 and accounts payable decreased $23.100. Compute net cash provided by operating activities using the indirect method. Net cash provided by operating activities
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Comment on the Cash flows from operating activities R756 000; Increase in receivables (R396 000) and Cash flows from investing activities (R1 368 000)
Arundel Company disclosed the following information for its recent calendar year. Income Statement Data Revenues Expenses: Salaries expense Utilities expense Depreciation expense Other expenses Net loss $ 95,000 73,000 35,000 28,800 9,000 $(50,800) Cash flows from operating activities Selected Year-End Balance Sheet Data Accounts receivable decrease Purchased a machine for cash Salaries payable increase Other accrued liabilities decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Any loss or amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) $25,000 19,000 24,000 15,000
The following information is available from the current period financial statements: Net income $ 111,199 Depreciation expense $34,516 Increase in accounts receivable $15,211 Decrease in accounts payable $22,902 The net cash flow from operating activities using the indirect method is a.$61,472 b.$183,828 c.$107,602 d.$84,374