Managerial Accounting
17th Edition
ISBN: 9781260247787
Author: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Publisher: RENT MCG
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Chapter 15, Problem 2E
EXERCISE 14-2 Net Cash Provided by Operating Activities LO14-2
For the just completed year, Hanna Company had net income of $35,000. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows:
December 31
End of Year
Beginning of Year
Current assets:
| Cash and cash equivalents | $30,000 |
$40,000 |
$125,000 |
$106,000 | |
| Inventory | $213,000 |
$180,000 |
| Prepaid expenses | $6,000 |
$7,000 |
| Current liabilities: | ||
| Accounts payable | $210,000 |
$195,000 |
| Accrued liabilities | $4,000 |
$6,000 |
| Income taxes payable | $34,000 |
$30,000 |
The Accumulated Depreciation account had total credits of $20,000 during the year. Hanna Company did not record any gains or losses during the year.
Required:
Using the indirect method, determine the net cash provided by operating activities for the year.
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Calculate the cash return on assets, cash flow to sales, and asset turnover. (Do not round intermediate calculations. Round your final
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Exercise 13-2 Net Cash Provided by Operating Activities [LO13-2]
For the just completed year, Hanna Company had net income of $55,500. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows:
December 31
End of Year
Beginning of Year
Current assets:
Cash and cash equivalents
$
64,000
$
78,000
Accounts receivable
$
158,000
$
184,000
Inventory
$
445,000
$
367,000
Prepaid expenses
$
12,000
$
13,000
Current liabilities:
Accounts payable
$
350,000
$
380,000
Accrued liabilities
$
7,500
$
12,000
Income taxes payable
$
36,000
$
25,000
The Accumulated Depreciation account had total credits of $52,000 during the year. Hanna Company did not record any gains or losses during the year.
Required:
Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.)
Chapter 15 Solutions
Managerial Accounting
Ch. 15.A - Prob. 1ECh. 15.A - EXERCISE 14A-2 Net Cash Provided by Operating...Ch. 15.A - Prob. 3ECh. 15.A - Prob. 4ECh. 15.A -
PROBLEM 14A-5 Prepare and Interpret a Statement...Ch. 15.A - Prob. 6PCh. 15.A - PROBLEM 14A-7 Prepare and Interpret a Statement of...Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3Q
Ch. 15 - Prob. 4QCh. 15 - Prob. 5QCh. 15 - Prob. 6QCh. 15 - Prob. 7QCh. 15 - Prob. 8QCh. 15 - Prob. 9QCh. 15 -
14-10 If the Accounts Receivable balance...Ch. 15 - Prob. 11QCh. 15 - Prob. 12QCh. 15 - Prob. 1F15Ch. 15 - Ravenna Company is a merchandiser that uses the...Ch. 15 - Prob. 3F15Ch. 15 - Prob. 4F15Ch. 15 - Prob. 5F15Ch. 15 - Prob. 6F15Ch. 15 - Ravenna Company is a merchandiser that uses the...Ch. 15 - Prob. 8F15Ch. 15 - Prob. 9F15Ch. 15 - Prob. 10F15Ch. 15 - Prob. 11F15Ch. 15 - Prob. 12F15Ch. 15 - Prob. 13F15Ch. 15 - Prob. 14F15Ch. 15 - Prob. 15F15Ch. 15 - Prob. 1ECh. 15 - EXERCISE 14-2 Net Cash Provided by Operating...Ch. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Prob. 5ECh. 15 - Prob. 6ECh. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Prob. 9PCh. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14P
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