FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Accounts receivable arising from trade transactions amounted to $44,000 and $53,000 at the beginning and end of the year, respectively. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is: a. $105,000 b. $114,000 c. $96,000 d. $158,000arrow_forwardAccounts receivable arising from sales to customers amounted to $82000 and $77000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $282000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is $282000. O $205000. O $287000. O $276000.arrow_forwardAccounts receivable from sales transactions were $45,634 at the beginning of the year and $60,027 at the end of the year. Net income reported on the income statement for the year was $126,710. Exclusive of the effect of other adjustments, the net cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would be a. $126,710 b. $112,317 c. $14,393 d. $141,103arrow_forward
- The accounting records of Hampton Company provided the data below ($ in thousands). Net income Depreciation expense Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in salaries payable Increase in interest payable $33,300 9,400 5,600 7,100 2,000 4,300 1,400 Required: Prepare a reconciliation of net income to net cash flows from operating activities.arrow_forwardAccounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) SHERIDAN COMPANY Partial Statement of Cash Flows Adjustments to reconcile net income to $ $arrow_forwardMacrosoft Company reports net income of $62,000. The accounting records reveal depreciation expense of $77,000 as well as increases in prepaid rent, accounts payable, and income tax payable of $57,000, $10,000, and $16,500, respectively. Prepare the operating activities section of Macrosoft's statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities MACROSOFT COMPANY Statement of Cash Flows (partial) Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activitiesarrow_forward
- On the indirect statement of cash flows, $500,000 relating to notes payable was subtracted from net income to get indirect cash flow from operations. This must mean that:arrow_forward125. accountigarrow_forwardAccounts receivable from sales transactions were $49,313 at the beginning of the year and $62,098 at the end of the year. Net income reported on the income statement for the year was $122,531. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would bearrow_forward
- The accounting records of United Company provided the data below. $40,000 12,000 11,000 14,000 4,800 700 Net Income Depreciation expense Increase in salaries payable Increase in accounts receivable Decrease in inventory Amortization of patent Decrease in premium on bonds payable 223 500 Required: Show all work A. Based on the information provided, determine the net cash flows from operating activities for United Company. Provide your response and your work in the space below B. Determine the Quality of Income for United Company. Specify if it is of low quality or high quality and briefly explain. Provide your responses and your work in the space below. Essay Toolbar navigation. BIUS E = = E E = A v 43 of 44 Next > < Prev MacBook Airarrow_forwardThe Cash and Accounts Receivable end-of-year balances for a company are provided below. Current Year Prior Year Cash $45,537 $35,300 Accounts receivable (net) 35,900 71,800 Based on this information, what is the amount and percentage of increase or decrease that would be shown with horizontal analysis? Enter a decrease using a minus sign before the amount and the percentage. Account Dollar Change Percent Change Cash $fill in the blank 1 fill in the blank 2 % Accounts Receivable $fill in the blank 4 fill in the blank 5 % increase,decreasearrow_forward11. In 2020, Windsor Corporation reported a net loss of $69,800. Windsor’s only net income adjustments were depreciation expense $81,700, and increase in accounts receivable $8,900.Compute Windsor’s net cash provided (used) by operating activities. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash by operating activities $arrow_forward
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