Selected data (in thousands) derived from the income statement and balance sheet of Cardinas Corp. for a recent year are as follows: Income statement data: Line Item Description Amount Net income $49,265 Gain on disposal of property 1,140 Depreciation expense 11,570 Other items involving noncash expenses 1,425 Balance sheet data: Line Item Description Amount Increase in accounts receivable 1,795 Decrease in inventory 1,030 Increase in prepaid expenses 605 Decrease in accounts payable 720 Decrease in accrued and other current liabilities 965 Question Content Area a. Prepare the “Cash flows from (used for) operating activities” section of the statement of cash flows, using the indirect method for Cardinas Corp. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Enter the amounts in thousands of dollars, as shown above. Cardinas Corp.Cash Flows from Operating Activities(in thousands) Line Item Description Amount Amount Cash flows from (used for) operating activities: $Net income blank Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Gain on disposal of property Other items involving noncash expenses Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Decrease in accounts payable blank Decrease in accrued and other current liabilities $Net cash flows from operating activities
Selected data (in thousands) derived from the income statement and balance sheet of Cardinas Corp. for a recent year are as follows: Income statement data: Line Item Description Amount Net income $49,265 Gain on disposal of property 1,140 Depreciation expense 11,570 Other items involving noncash expenses 1,425 Balance sheet data: Line Item Description Amount Increase in accounts receivable 1,795 Decrease in inventory 1,030 Increase in prepaid expenses 605 Decrease in accounts payable 720 Decrease in accrued and other current liabilities 965 Question Content Area a. Prepare the “Cash flows from (used for) operating activities” section of the statement of cash flows, using the indirect method for Cardinas Corp. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Enter the amounts in thousands of dollars, as shown above. Cardinas Corp.Cash Flows from Operating Activities(in thousands) Line Item Description Amount Amount Cash flows from (used for) operating activities: $Net income blank Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Gain on disposal of property Other items involving noncash expenses Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Decrease in accounts payable blank Decrease in accrued and other current liabilities $Net cash flows from operating activities
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 9BE
Related questions
Question
Selected data (in thousands) derived from the income statement and balance sheet of Cardinas Corp. for a recent year are as follows:
Income statement data:Line Item Description | Amount |
---|---|
Net income | $49,265 |
Gain on disposal of property | 1,140 |
Depreciation expense | 11,570 |
Other items involving noncash expenses | 1,425 |
Line Item Description | Amount |
---|---|
Increase in accounts receivable | 1,795 |
Decrease in inventory | 1,030 |
Increase in prepaid expenses | 605 |
Decrease in accounts payable | 720 |
Decrease in accrued and other current liabilities | 965 |
Question Content Area
a. Prepare the “
Line Item Description | Amount | Amount |
---|---|---|
Cash flows from (used for) operating activities: | ||
|
$Net income | blank |
Adjustments to reconcile net income to net cash flows from (used for) operating activities: | ||
|
Depreciation | |
|
Gain on disposal of property | |
|
Other items involving noncash expenses | |
Changes in current operating assets and liabilities: | ||
|
Increase in accounts receivable | |
|
Decrease in inventory | |
|
Increase in prepaid expenses | |
|
Decrease in accounts payable | blank |
|
Decrease in accrued and other current liabilities | |
|
$Net cash flows from operating activities |
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