QS 12-5 (Algo) Indirect: Computing cash flows from operations LO P2 Net income Depreciation expense Accounts receivable increase (decrease) Inventory increase (decrease) Accounts payable increase (decrease) Accrued liabilities increase (decrease) Twix $5,500 41,400 55,300 (27,800) 33,300 (61,100) Changes in current operating assets and liabilities Dots $ 139,000 11,000 27,500 (13,900) (30,700) 16,800 Cash Flows from Operating Activities (Indirect) Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash For each separate company, compute cash flows from operations using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. $ Skor $ 100,800 33,600 (5,500) 13,900 Twix 19,400 (11,000) 0 $ Dots 0 $ Skor 0

QS 12-5 (Algo) Indirect: Computing cash flows from operations LO P2 Net income Depreciation expense Accounts receivable increase (decrease) Inventory increase (decrease) Accounts payable increase (decrease) Accrued liabilities increase (decrease) Twix $5,500 41,400 55,300 (27,800) 33,300 (61,100) Changes in current operating assets and liabilities Dots $ 139,000 11,000 27,500 (13,900) (30,700) 16,800 Cash Flows from Operating Activities (Indirect) Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash For each separate company, compute cash flows from operations using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. $ Skor $ 100,800 33,600 (5,500) 13,900 Twix 19,400 (11,000) 0 $ Dots 0 $ Skor 0

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 56PSA: Preparing a Statement of Cash Flows Monon Cable Television Company reported the following financial...

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Problem 11-8A (Algo) Prepare an income statement using operating cash flow information-indirect and direct methods (LO11-3, 11-7) Cash flows from operating activities for both the indirect and direct methods are presented for Reverse Logic. All amounts are in thousands (000s). Cash Flows from Operating Activities (Indirect method) Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Increase in accounts receivable Decrease in inventory Increase in prepaid rent Decrease in accounts payable Decrease in income tax payable Net cash flows from operating activities Cash Flows from Operating Activities (Direct method) Cash received from customers Cash paid to suppliers Cash paid for operating expenses Cash paid for income taxes Net cash flows from operating activities REVERSE LOGIC Income Statement For the Year Ended December 31, 2024 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense…
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Exercise 12-1 (Algo) Indirect: Classifying Cash flows LO C1 Indicate where each item would appear on a statement of cash flows using the Indirect method by placing an X In the appropriate column(s). (More than one column may be used.) a. Paid cash to settle long-term notes payable b. Inventory increased in the year c. Issued common stock for cash d. Accounts payable decreased in the year e. Income taxes payable increased in the year f. Retired bonds payable by issuing stock g. Sold merchandise to customer for cash h. Sold land in return for cash i. Received a cash dividend from investment j. Recorded depreciation expense X Operating Investing Activities Activities X X X X Answer is not complete. X Statement of Cash Flows > X Financing Activities X X X x Noncash Investing & Financing Activities X x Not Reported on Statement or in Notes
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