FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Kensington Company, an SME, reported net income of P500,000 in 2021. Gain on sale of equipment was P90,000. The following
P110,000 increase | |
---|---|
Trading equity instrument | 160,000 decrease |
Inventory | 73,000 increase |
Non-Trade note payable | 150,000 increase |
Accounts payable | 122,000 increase |
Under the indirect method, what is the net cash provided by operating activities?
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- Crane Company completed its first year of operations on December 31, 2022. Its initial income statement showed that Crane had sales revenue of $197,500 and operating expenses of $71,300. Accounts receivable and accounts payable at year-end were $62,400 and $18,300, respectively. Assume that accounts payable related to operating expenses. Ignore income taxes. Compute net cash provided by operating activities using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash provided by operating activities GA $ 84,162arrow_forwardBlossom 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 activitiesarrow_forwardQuestion 4: XYZ Co. had the following information in 2020: Sales 150000 COGS 80000 Operating expenses (excluding depreciation) Interest expense 32000 8000 Таxes 3000 Increase in Accounts receivable 7000 Decrease in inventory Increase in Accounts payable Decrease in other payables Increase in interest payable Decrease in tax payable 4000 5000 3500 2000 1000 Prepare operating cash flows using direct method.arrow_forward
- Comment on the Cash flows from operating activities R756 000; Increase in receivables (R396 000) and Cash flows from investing activities (R1 368 000)arrow_forwardS Company reported net income for 2021 in the amount of $400,000. The company's financial statements also included the following: Increase in accounts receivable $ 80,000 Decrease in inventory 60,000 Increase in accounts payable 200,000 Depreciation expense 104,000 Gain on sale of land 148,000 What is net cash provided by operating activities under the indirect method? O $432,000. O $536,000. O $580,000. O $832,000.arrow_forwardSwifty Company completed its first year of operations on December 31, 2022. Its initial income statement showed that Swifty had sales revenue of $200,000 and operating expenses of $74,400. Accounts receivable and accounts payable at year-end were $54,900 and $28,600, respectively. Assume that accounts payable related to operating expenses. Ignore income taxes. Compute net cash provided by operating activities using the direct method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash provided by operating activities $arrow_forward
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