Net income Depreciation expense Decrease in inventory. Increase in accounts receivable Increase in interest payable Amortization of bond discount Increase in accounts payable Cash dividends paid Required: Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicat a minus sign.) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: $194,000 23,000 11,400 1,340 1,540 2,400 6,400 14,000 Net cash flows from operating activities

Net income Depreciation expense Decrease in inventory. Increase in accounts receivable Increase in interest payable Amortization of bond discount Increase in accounts payable Cash dividends paid Required: Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicat a minus sign.) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: $194,000 23,000 11,400 1,340 1,540 2,400 6,400 14,000 Net cash flows from operating activities

Name: Net incomeDepreciation expenseDecrease in inventory.Increase in accou
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: Net incomeDepreciation expenseDecrease in inventory.Increase in accounts receivableIncrease in interest payable.Amortization of bond discountIncrease in accounts payableCash dividends paidRequired:Prepare a reconciliation of net income to net cash f

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.10E

See similar textbooks

Similar questions

Which of the following is the adjustment that is added during the reconciliation of net income to operating cash flows in indirect method? Select one: a. An increase in Prepaid Expenses b. Amortization Expense c. An increase in Accounts Receivable d. Gain on sale of capital assets
In preparing a cash flow statement which of the following is a cash inflow? A. Issue of DebenturesB. Redemption of DebenturesC. Increase in trade ReceivablesD. Decrease in trade payable
Indicate whether each item should be added to or subtracted from net income to arrive at the net cash flow from operating activities. a. Increase in inventory b. Amortization of discount on investment in bonds c. Decrease in accounts payable d. Amortization of discount on bonds payable e. Increase in salaries payable f. Increase in prepaid expenses g. Subsidiary loss under the equity method h. Gain on disposal of equipment i. Decrease in accounts receivable j. Increase in deferred tax liability
Please classify each of the following accounts into its right category of cash flow activities. Which of the following item(s) belong to Operation Activities? (This question may contain multiple answers) Depreciation Fixed assets expenses Change in Inventories Change in Accounts Payable Payment of cash dividends Change in Notes Payable Payment of long-term debt Change in marketable securities Net income Change in Account Receivables
An increase in accounts receivable would affect which section of the cash flow statement? choices: revenue activities investing activities operating activities financing activities
RECONCILIATION OF NET INCOME TO NET CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities
How is a decrease in current liabilities handled? A. It is subtracted from current assets in the cash flows from financing activities section B. It is added to inventory purchases in the cash flows from investing activities section C. It is subtracted from net income in the cash flows from operating activities section. D. It is added to net income in the cash flows from operating activities section.
Which of the following will be reflected as a cash inflow in the statement of cash flows of an entity? A) Decrease in non-current loan B) Increase in inventory C) Decrease in accounts receivable D) Decrease in accounts payable
Which of the following is not added to net income as an adjustment to reconcile net income to cash from operating activities in the statement of cash flows? A. Increase in deferred tax asset B. Increase in an accrued liability C. Loss on sale of operational asset D. Amortization of discount on bond payable
Indicate whether each item would be added ( 1 ) or subtracted ( 2 ) in the computation of cash flowfrom operating activities using the indirect method.1. Depreciation.2. Inventory decrease.3. Accounts payable decrease.4. Accounts receivable increase.5. Accrued liabilities increase.
Please classify each of the following accounts into its right category of cash flow activities. Which of the following item(s) belong to Operation Activities? (This question may contain multiple answers) Depreciation Fixed assets expenses Change in Inventories Change in Accounts Payable Payment of cash dividends Change in Notes Payable Payment of long-term debt Change in marketable securities Net income Change in ACcount Receivables
Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? a.a decrease in accounts payable b.an increase in inventory c.preferred dividends declared and paid d.a decrease in accounts receivable