Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Chapter 22, Problem 22.19BE
To determine
To prepare: The operating activities section of the
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Hampton Company reports the following information for its recent calendar year.
Selected Year-End Balance Sheet Data
Accounts receivable increase
$ 77,000
Inventory decrease
41,000 Salaries payable increase
12,000
4,000
$ 20,000
Income Statement Data
Sales
Expenses:
Cost of goods sold
Salaries expense
Depreciation expense
Net income
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method.
Note: Amounts to be deducted should be indicated with a minus sign.
Statement of Cash Flows (partial)
Cash flows from operating activities-indirect method
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
$ 5,000
5,000
900
Changes in current operating assets and liabilities
ences
Hampton Company reports the following information for its recent calendar year.
Income Statement Data
Sales
Expenses:
Cost of goods sold
Salaries expense
Depreciation expense
Net income
$ 160,000 Accounts receivable increase
Inventory decrease
Salaries payable increase
100,000
24,000
12,000
$ 24,000
Selected Year-End Balance Sheet Data
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method.
Note: Amounts to be deducted should be indicated with a minus sign.
Statement of Cash Flows (partial)
Cash flows from operating activities-indirect method
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Changes in current operating assets and liabilities
$ 10,000
16,000
1,000
Hampton Company reports the following information for its recent calendar year.
Income Statement Data
Sales
Expenses:
Cost of goods sold
Salaries expense
Depreciation expense
Net income
Selected Year-End Balance Sheet Data
$77,000 Accounts receivable increase
Inventory decrease
36,000 Salaries payable increase
9,000
7,000
$ 25,000
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be
indicated with a minus sign.)
Statement of Cash Flows (partial)
Cash flows from operating activities-indirect method
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Changes in current operating assets and liabilities
$ 10,000
3,000
900
Chapter 22 Solutions
Intermediate Accounting
Ch. 22 - Prob. 22.1QCh. 22 - Prob. 22.2QCh. 22 - Prob. 22.3QCh. 22 - Prob. 22.4QCh. 22 - Prob. 22.5QCh. 22 - How do firms reclassify gains and losses on the...Ch. 22 - Prob. 22.7QCh. 22 - Prob. 22.8QCh. 22 - Prob. 22.9QCh. 22 - Prob. 22.10Q
Ch. 22 - Prob. 22.11QCh. 22 - What approach is used in preparing the operating...Ch. 22 - Under the indirect method, do firms subtract bond...Ch. 22 - Do firms subtract pension expense from net income...Ch. 22 - Prob. 22.15QCh. 22 - Prob. 22.16QCh. 22 - Prob. 22.1MCCh. 22 - Prob. 22.2MCCh. 22 - Big Dollars Corporation's comparative financial...Ch. 22 - Prob. 22.4MCCh. 22 - Prob. 22.5MCCh. 22 - Sykes Corporation's comparative balance sheets at...Ch. 22 - Prob. 22.7MCCh. 22 - Prob. 22.8MCCh. 22 - Prob. 22.1BECh. 22 - Prob. 22.2BECh. 22 - Prob. 22.3BECh. 22 - Prob. 22.4BECh. 22 - Prob. 22.5BECh. 22 - Prob. 22.6BECh. 22 - Prob. 22.7BECh. 22 - Operating Activities Section, Indirect Method,...Ch. 22 - Prob. 22.9BECh. 22 - Prob. 22.10BECh. 22 - Prob. 22.11BECh. 22 - Prob. 22.12BECh. 22 - Prob. 22.13BECh. 22 - Operating Activities Section, Indirect Method,...Ch. 22 - Prob. 22.15BECh. 22 - Prob. 22.16BECh. 22 - Prob. 22.17BECh. 22 - Prob. 22.18BECh. 22 - Prob. 22.19BECh. 22 - Prob. 22.20BECh. 22 - Prob. 22.21BECh. 22 - Prob. 22.22BECh. 22 - Complex Transactions, Acquisitions and...Ch. 22 - Prob. 22.24BECh. 22 - Prob. 22.25BECh. 22 - Complex Transactions, Change in Accounts...Ch. 22 - Prob. 22.27BECh. 22 - Prob. 22.28BECh. 22 - Prob. 22.1ECh. 22 - Prob. 22.2ECh. 22 - Prob. 22.3ECh. 22 - Prob. 22.4ECh. 22 - Prob. 22.5ECh. 22 - Prob. 22.6ECh. 22 - Prob. 22.7ECh. 22 - Prob. 22.8ECh. 22 - Prob. 22.9ECh. 22 - Prob. 22.10ECh. 22 - Statement of Cash Flows, Indirect Method....Ch. 22 - Prob. 22.12ECh. 22 - Prob. 22.13ECh. 22 - Prob. 22.14ECh. 22 - Prob. 22.15ECh. 22 - Prob. 22.16ECh. 22 - Prepare Statement of Cash Flows, Direct Method....Ch. 22 - Prob. 22.2PCh. 22 - Prob. 22.3PCh. 22 - Prob. 22.4PCh. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Prob. 22.11PCh. 22 - Prob. 22.12PCh. 22 - Prob. 22.13PCh. 22 - Statement of Cash Flows, Direct Method, Complex...Ch. 22 - Prob. 1JCCh. 22 - Prob. 1FSCCh. 22 - Prob. 1SSCCh. 22 - Surfing the Standards Case 2: Cash Flow per Share...Ch. 22 - Basis for Conclusions Cases Basis for Conclusions...Ch. 22 - Basis for Conclusions Case 2: Indirect versus...
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- In the current year, Harrisburg Corporation had net income of 35,000, a 9,000 decrease in accounts receivable, a 7,000 increase in inventory, an 8,000 increase in salaries payable, a 13,000 decrease in accounts payable, and 10,000 in depreciation expense. Using the indirect method, prepare the operating activities section of its statement of cash flows based on this information.arrow_forwardPartial Statement of Cash Flows Service Company had net income during the current year of $65,800. The following information was obtained from Services balance sheet: Accounts receivable $26,540 increase Inventory 32,180 increase Accounts payable 9,300 decrease Interest payable 2,120 increase Accumulated depreciation (Building) 14,590 increase Accumulated depreciation (Equipment) 32,350 increase Additional Information: 1. Equipment with accumulated depreciation of $18,000 was sold during the year. 2. Cash dividends of $29,625 were paid during the year. Required: 1. Prepare the net cash flows from operating activities using the indirect method. 2. CONCEPTUAL CONNECTION How would the cash proceeds from the sale of equipment he reported on the statement of cash flows? 3. CONCEPTUAL CONNECTION How would the cash dividends be reported on the statement of cash flows? 4. CONCEPTUAL CONNECTION What could the difference between net income and cash flow from operating activities signal to financial statement users?arrow_forwardStatement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income, 68,000 b. Increase in accounts receivable, 4,400 c. Receipt from sale of common stock, 12,300 d. Depreciation expense, 11,300 e. Dividends paid, 24,500 f. Payment for purchase of building, 65,000 g. Bond discount amortization, 2,700 h. Receipt from sale of long-term investments at cost, 10,600 i. Payment for purchase of equipment, 8,000 j. Receipt from sale of preferred stock, 20,000 k. Increase in income taxes payable, 3,500 l. Payment for purchase of land, 9,700 m. Decrease in accounts payable, 2,900 n. Increase in inventories, 10,300 o. Beginning cash balance, 18,000 Required: Prepare Mueller Company's statement of cash flows.arrow_forward
- Reporting changes in equipment on statement of cash flows An analysis of the general ledger accounts indicates that delivery equipment, which cost 75,000 and on which accumulated depreciation totaled 58,000 on the date of sale, was sold for 20,200 during the year. Using this information, indicate the items to be reported on the statement of cash flows.arrow_forwardHelp Sa Hampton Company reports the following information for its recent calendar year. Income Statement Data Sales Selected Year-End Balance Sheet Data $ 78,000 Accounts receivable increase $ 7,000 Expenses: Cost of goods sold Salaries expense Depreciation expense Inventory decrease 3, 000 900 42, 000 Salaries payable increase 10, 000 4,000 $ 22,000 Net income Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities-indirect method Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilitiesarrow_forwardHampton Company reports the following information for its recent calendar year. Prepare the operating activities section of the statement of cash flows using the indirect method. Income Statement Data Selected Year-End Balance Sheet Data Sales.... $160,000 Accounts receivable increase... Inventory decrease.... Salaries payable increase.. $10,000 Expenses: Cost of goods sold.. Salaries expense. 100,000 16,000 24,000 1,000 Depreciation expense. 12,000 Net income... $ 24,000arrow_forward
- Hampton Company reports the following Income Statement Data Sales Expenses: Cost of goods sold Salaries expense Depreciation expense Net income information for its recent calendar year. Selected Year-End Balance Sheet Data Accounts receivable increase Inventory decrease $78,000 36,000 Salaries payable increase 8,000 7,000 $27,000 Cash flows from operating activities Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) $6,000 4,000 700 $arrow_forward1.Hampton Company reports the following information for its recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data Sales $ 72,000 Accounts receivable increase $ 9,000 Expenses: Inventory decrease 2,000 Cost of goods sold 41,000 Salaries payable increase 1,000 Salaries expense 10,000 Depreciation expense 7,000 Net income $ 14,000 Required: Prepare the operating activities section of the statement of cash flows using the indirect method.arrow_forwardApex Company prepared the statement of cash flows for the current year that is shown below: Apex CompanyStatement of Cash Flows—Indirect Method Operating activities: Net income $ 40,400 Adjustments to convert net income to cash basis: Depreciation $ 20,200 Increase in accounts receivable (60,900) Increase in inventory (25,100) Decrease in prepaid expenses 9,600 Increase in accounts payable 53,700 Decrease in accrued liabilities (10,500) Increase in income taxes payable 4,300 (8,700) Net cash provided by (used in) operating activities 31,700 Investing activities: Proceeds from the sale of equipment 15,200 Loan to Thomas Company (41,100) Additions to plant and equipment (121,100) Net cash provided by (used in) investing activities (147,000) Financing activities: Increase in bonds payable 89,700 Increase in common stock 39,300 Cash dividends (29,600) Net cash provided by (used in) financing…arrow_forward
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