Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Question
Chapter 15, Problem 6E
a.
To determine
Prepare the
b.
To determine
Explain if direct method had been used, would the net cash flow from operating activities will be same.
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Cash flows from operating activities-indirect method
The net income reported on the income statement for the current year was $214,000.Depreciation recorded on equipment and a building amounted to $99,300 for the year.Balaces of the current asset and liability accounts at the begining and end of the year are as follows;
A.prepare the "cash flows from operating activities" section of the statement of cash flows,using the indirect method.
B.If the direct method had been used,would the net cash flows from operating have been the same?Explain
Cash Flows from Operating Activities-Indirect Method
The net income reported on the income statement for the current year was $294,100. Depreciation recorded on equipment and a building amounted to $87,900 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
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a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Statement of Cash Flows (partial)
Cash flows from operating activities:
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Cash flows from (used for) operating activities-indirect method
The net income reported on the income statement for the current year was $278,700. Depreciation recorded on equipment and a building amounted to $83,300 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
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Cash
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95,420
98,440
188,130
169,590
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Statement of Cash Flows (partial)
Line Item Description
Amount
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Cash flows from (used for) operating activities:
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278.700✔
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Chapter 15 Solutions
Managerial Accounting
Ch. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Fully depreciated equipment costing 50,000 was...Ch. 15 - Prob. 9DQCh. 15 - Prob. 10DQ
Ch. 15 - Prob. 1BECh. 15 - Prob. 2BECh. 15 - Prob. 3BECh. 15 - Prob. 4BECh. 15 - Land transactions on the statement of cash flows...Ch. 15 - Prob. 6BECh. 15 - Prob. 7BECh. 15 - Prob. 8BECh. 15 - Prob. 9BECh. 15 - Prob. 1ECh. 15 - Effect of transactions on cash flows State the...Ch. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Cash flows from operating activitiesindirect...Ch. 15 - Prob. 6ECh. 15 - Prob. 7ECh. 15 - Reporting changes in equipment on statement of...Ch. 15 - Reporting changes in equipment on statement of...Ch. 15 - Prob. 10ECh. 15 - Prob. 11ECh. 15 - Prob. 12ECh. 15 - Prob. 13ECh. 15 - Prob. 14ECh. 15 - Prob. 15ECh. 15 - Prob. 16ECh. 15 - Statement of cash flowsindirect method The...Ch. 15 - Prob. 18ECh. 15 - Prob. 19ECh. 15 - Prob. 20ECh. 15 - Prob. 21ECh. 15 - Prob. 22ECh. 15 - Prob. 1PACh. 15 - Statement of cash flowsindirect method The...Ch. 15 - Prob. 3PACh. 15 - Prob. 4PACh. 15 - Statement of cash flowsdirect method applied to PR...Ch. 15 - Prob. 1PBCh. 15 - Prob. 2PBCh. 15 - Prob. 3PBCh. 15 - Statement of cash flowsdirect method The...Ch. 15 - Statement of cash flowsdirect method applied to PR...Ch. 15 - Prob. 1MADCh. 15 - Prob. 2MADCh. 15 - Prob. 3MADCh. 15 - Prob. 4MADCh. 15 - Prob. 5MADCh. 15 - Prob. 1TIFCh. 15 - Financial condition Tidewater Inc., a retailer,...Ch. 15 - Prob. 4TIF
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