Financial Accounting: Tools for Business Decision Making, 8e WileyPLUS (next generation) + Loose-leaf
8th Edition
ISBN: 9781119491057
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: Wiley (WileyPLUS Products)
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Chapter 12, Problem 12.3AP
To determine
Indirect method: Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.
- Deduct increase in current assets.
- Deduct decrease in current liabilities.
- Add decrease in current assets.
- Add the increase in current liability.
- Add
depreciation expense and amortization expense. - Add loss on sale of plant assets.
- Less gain on sale of plant assets.
To Prepare: Operating activities section of statement of cash flows for the year ended November 30, 2017 under indirect method.
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Baxter Company reported a net loss of $15,070 for the year ended December 31. During the year, accounts receivable decreased by $4,715, merchandise inventory increased by $11,951, accounts payable increased by $9,458, and depreciation expense of $4,513 was recorded. During the year, operating activities under the indirect method
Selected data derived from the income statement and balance sheet of Jones Soda Co. For a recent year are as follows;
Income Statement data (in thousands):
Net earnings(loss)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â $(6106)
Losses on inventory write-down and fixed assets 379
Depreciation expense               799
Stock based compensation expense (noncash)Â Â Â 830
Balance sheet data (in thousands):
Increase in accounts receivable        278
Decrease in inventory                 1252
Decrease in prepaid expenses          131
Decrease in accounts payable          472
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a. Prepare the cash flow from operating activities section of the statement of cash flows,using the indirect method for Jones Soda Co.
n. Interpret your results in part (a).
Changes in the company's balance sheet accounts over the year are summarized as follows:
Accounts receivable decreased by $85,000.
Accrued Interest Receivable increased by $15,000.
Inventory decreased by $280,000.
Accounts payable related to suppliers of merchandise decreased by $240,000.
Short-term prepayments of operating expenses decreased by $18,000.
Accrued liabilities for operating expenses increased by $35,000.
Liability for accrued interest payable decreased by $16,000.
Liability for accrued income taxes payable increased by $25,000.9. As an investment, $120,000 of marketable securities were purchased during the year.
Marketable securities with a book value of $210,000 were sold.
$250,000 was invested as a loan to another company.
$190,000 of loan given before were collected.
$3,800,000 of plant assets were purchased for cash.
Plant assets with a book value of $360,000 were sold during the year.
$740,000 were borrowed as notes payable (long term).
$620,000 of notes payable…
Chapter 12 Solutions
Financial Accounting: Tools for Business Decision Making, 8e WileyPLUS (next generation) + Loose-leaf
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - Prob. 4QCh. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Why is it necessary to use comparative balance...Ch. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - Prob. 11QCh. 12 - Prob. 12QCh. 12 - Prob. 13QCh. 12 - Prob. 14QCh. 12 - Prob. 15QCh. 12 - Prob. 16QCh. 12 - Prob. 17QCh. 12 - Prob. 18QCh. 12 - Prob. 19QCh. 12 - Prob. 20QCh. 12 - Prob. 21QCh. 12 - Prob. 22QCh. 12 - Prob. 12.1BECh. 12 - Prob. 12.2BECh. 12 - Prob. 12.3BECh. 12 - Prob. 12.4BECh. 12 - Prob. 12.5BECh. 12 - Prob. 12.7BECh. 12 - Prob. 12.8BECh. 12 - Prob. 12.9BECh. 12 - Prob. 12.10BECh. 12 - Prob. 12.11BECh. 12 - The management of Uhuru Inc. is trying to decide...Ch. 12 - Prob. 12.13BECh. 12 - Prob. 12.14BECh. 12 - Prob. 12.15BECh. 12 - Prob. 12.1DIECh. 12 - Prob. 12.2ADIECh. 12 - Prob. 12.2BDIECh. 12 - Prob. 12.3DIECh. 12 - Prob. 12.1ECh. 12 - Prob. 12.2ECh. 12 - Prob. 12.3ECh. 12 - Prob. 12.4ECh. 12 - Prob. 12.5ECh. 12 - Prob. 12.6ECh. 12 - Prob. 12.7ECh. 12 - Prob. 12.8ECh. 12 - Prob. 12.9ECh. 12 - Prob. 12.10ECh. 12 - Prob. 12.11ECh. 12 - Prob. 12.12ECh. 12 - Prob. 12.13ECh. 12 - Prob. 12.14ECh. 12 - Prob. 12.15ECh. 12 - Prob. 12.1APCh. 12 - Prob. 12.2APCh. 12 - Prob. 12.3APCh. 12 - Prob. 12.4APCh. 12 - Prob. 12.5APCh. 12 - Prob. 12.6APCh. 12 - Prob. 12.7APCh. 12 - Prob. 12.8APCh. 12 - Prob. 12.9APCh. 12 - Prob. 12.10APCh. 12 - Prob. 12.11APCh. 12 - Prob. 12.12APCh. 12 - Prob. 12.1EYCTCh. 12 - Prob. 12.2EYCTCh. 12 - Prob. 12.3EYCTCh. 12 - Prob. 12.7EYCTCh. 12 - Prob. 12.8EYCTCh. 12 - Prob. 12.9EYCTCh. 12 - Prob. 12.1IFRSCh. 12 - Prob. 12.2IFRSCh. 12 - Prob. 12.3IFRS
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