Hampton Company reports the following information for its recent calendar year. Selected Year-End Balance Sheet Data Accounts receivable increase $160,000 Inventory decrease $10,000 16,000 1,000 100,000 Salaries payable increase 24,000 12,000 $ 24,000 Income Statement Data Sales Expenses Cost of goods sold Salaries expense Depreciation expense Net income Required: Prepare the operating activities section of the statement of cash flows for Hampton Company using the indirect method. (Amounts to be deducted should be Indicated with a minus sign.) Answer is not complete. Cash flows from operating activities Net income $ 24,000 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Accounts receivable decrease Changes in current operating assets and liabilities Salaries payable increase Accounts receivable increase 00 00 12,000 36,000 1,000 10,000 83,000

Using the Exhibit below, assume that the balance of Accounts Receivable was $61,000 at the beginning of the current year.  Furthermore, assume that the balance of Accounts Receivable is $62,000 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 receivable 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…

Statement of Cash Flows (Indirect Method)The Wolff Company's income statement and comparative balance sheets at December 31 of the current year and the previous year are shown below: WOLFF COMPANYIncome StatementFor the Year Ended December 31 Sales Revenue   $825,500 Cost of Goods Sold $559,000   Wages Expense 111,800   Insurance Expense 10,400   Depreciation Expense 22,100   Interest Expense 11,700   Income Tax Expense 37,700 752,700 Net Income   $72,800   WOLFF COMPANYBalance Sheets   Dec. 31, Current Year Dec. 31, Previous Year Assets     Cash $14,300 $6,500 Accounts Receivable 53,300 41,600 Inventory 117,000 78,000 Prepaid Insurance 6,500 9,100 Plant Assets 325,000 253,500 Accumulated Depreciation (88,400) (66,300) Total Assets $427,700 $322,400 Liabilities and Stockholders' Equity     Accounts Payable $9,100 $13,000 Wages Payable 11,700 7,800 Income Tax Payable 9,100 10,400 Bonds Payable 169,000 97,500 Common Stock…

Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the following information: Income Statement for Current Year Service revenue Expenses Salaries Depreciation Amortization of copyrights Other expenses Net loss Partial Balance Sheet Accounts receivable Salaries payable Other accrued liabilities $ 42,000 8,200 220 10,200 Current Year $ 9,300 13,000 1,500 Cash flows from operating activities: RODRIGUEZ COMPANY Statement of Cash Flows (Partial) $ 53,000 60,620 $ (7,620) Prior Year $ 16,600 In addition, Rodriguez bought a small service machine for $7,000. Required: 1.Present the operating activities section of the statement of cash flows for Rodriguez Company using the indirect method. Note: List loss amount and cash outflows as negative amounts. 2,000 5,200

Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $654,000. Depreciation and amortization expense of $93,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash:      Decrease in accounts receivable $ 28,000   Increase in inventory   9,800   Increase in prepaid expenses   9,100   Increase in salaries payable   10,600   Decrease in income taxes payable   17,000      Required:Prepare the operating activities section of the 2021 statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)

The following information pertains to Peak Heights Company: Sales Expenses Cost of goods sold Salaries expense Net income Income Statement for Current Year $ 93,000 $ 51,875 Depreciation expense 6,000 12,000 69,875 $ 23,125 Partial Balance Sheet Current year Accounts receivable Inventory Salaries payable $ 10,500 13,000 2,250 Prior year $ 12,000 8,000 800 Required: Present the operating activities section of the statement of cash flows for Peak Heights Company using the indirect met Note: List cash outflows as negative amounts. PEAK HEIGHTS COMPANY Statement of Cash Flows (Partial)

Ravenna Company is a merchandiser using the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:   Ending Balance Beginning Balance Cash and cash equivalents $ 89,000 $ 106,750 Accounts receivable 71,500 77,000 Inventory 96,000 87,500 Total current assets 256,500 271,250 Property, plant, and equipment 255,000 245,000 Less accumulated depreciation 85,000 61,250 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable $ 56,000 $ 99,500 Income taxes payable 43,500 57,000 Bonds payable 105,000 87,500 Common stock 122,500 105,000 Retained earnings 99,500 106,000 Total liabilities and stockholders’ equity $ 426,500 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and sold a piece of equipment for $5,250 that originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or…

Ravenna Company is a merchandiser using the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:   Ending Balance Beginning Balance Cash and cash equivalents $ 89,000 $ 106,750 Accounts receivable 71,500 77,000 Inventory 96,000 87,500 Total current assets 256,500 271,250 Property, plant, and equipment 255,000 245,000 Less accumulated depreciation 85,000 61,250 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable $ 56,000 $ 99,500 Income taxes payable 43,500 57,000 Bonds payable 105,000 87,500 Common stock 122,500 105,000 Retained earnings 99,500 106,000 Total liabilities and stockholders’ equity $ 426,500 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and sold a piece of equipment for $5,250 that originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or…

Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:     Ending Balance   Beginning Balance Cash and cash equivalents $ 102,000   $ 122,400 Accounts receivable   81,700     88,000 Inventory   109,700     100,000 Total current assets   293,400     310,400 Property, plant, and equipment   291,000     280,000 Less accumulated depreciation   97,000     70,000 Net property, plant, and equipment   194,000     210,000 Total assets $ 487,400   $ 520,400             Accounts payable $ 64,000   $ 113,700 Income taxes payable   49,700     65,700 Bonds payable   120,000     100,000 Common stock   140,000     120,000 Retained earnings   113,700     121,000 Total liabilities and stockholders’ equity $ 487,400   $ 520,400     During the year, Ravenna paid a $12,000 cash dividend and it sold a piece of equipment for $6,000 that had…

n Year 1, Expert Electronics, Incorporated (EEI) recognized $6,500 of sales revenue on account and collected $3,900 of cash from accounts receivable. Further, EEI recognized $2,700 of operating expenses on account and paid $1,600 cash as partial settlement of accounts payable.RequiredBased on this information alone:a. Prepare the operating activities section of the statement of cash flows under the direct method. b. Prepare the operating activities section of the statement of cash flows under the indirect method.