College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 23, Problem 4SEB
To determine
Compute the cash from operating activities under indirect method.
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Students have asked these similar questions
CQ Photography reported net income of $103,000 for 2022. Included in the income statement were depreciation expense of
$6,500, patent amortization expense of $3,800, and a gain on disposal of plant assets of $4,000. CQ's comparative balance sheets
show the following balances.
Accounts receivable
Accounts payable
12/31/22
$19,200
Net Income
8,400
12/31/21
Cash Flows from Operating Activities
Calculate net cash provided by operating activities for CQ Photography 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).)
$27,000
CQ Photography
Statement of Cash Flows
For the Year Ended December 31, 2022
Adjustments to reconcile net income to
6,500
Net Cash Provided by Operating Activities
$
103000
A summary of cash flows for Conching Printing for the year ended May 31, 2020, is shown below.
Cash receipts:
Cash received from fees earned P 1,500,000.00
Additional investment of owner 75,000.00
Cash payments:
Cash paid for expenses 1,215,000.00
Cash paid for equipment 240,000.00
Cash paid to owner for personal use 66,000.00
Determine the net cash flows from operating activities.
Net Cash Flow From Operating Activities
Verna Company's records provided the following information for 2019:
decrease in accounts payable, $4,900
loss on sale of land, $1,900
increase in inventory, $7,100
increase in income taxes payable, $2,000
net income, $66,100
patent amortization expense, $1,000
ordinary loss, $6,500
decrease in deferred taxes payable, $2,400
amortization of discount on bonds payable, $1,900
payment of cash dividends, $28,000
depletion expense, $4,700
decrease in salaries payable, $1,800
decrease in accounts receivable, $3,800
gain on sale of equipment, $6,200
proceeds from issuance of stock, $60,000
ordinary gain, $3,200
depreciation expense, $13,000
amortization of discount on investment in bonds, $1,100
Required
Prepare the operating activities section of Verna's 2019 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash.
Chapter 23 Solutions
College Accounting, Chapters 1-27
Ch. 23 - True/False The purpose of the statement of cash...Ch. 23 - Investing activities are those transactions...Ch. 23 - An increase in accounts receivable is deducted...Ch. 23 - Prob. 4TFCh. 23 - Prob. 5TFCh. 23 - Prob. 1MCCh. 23 - Prob. 2MCCh. 23 - Prob. 3MCCh. 23 - Prob. 4MCCh. 23 - Prob. 5MC
Ch. 23 - Prob. 1CECh. 23 - Prob. 2CECh. 23 - Prob. 3CECh. 23 - Prob. 4CECh. 23 - Prob. 5CECh. 23 - Prob. 6CECh. 23 - Prob. 7CECh. 23 - Prob. 8CECh. 23 - Prob. 1RQCh. 23 - Prob. 2RQCh. 23 - Prob. 3RQCh. 23 - Prob. 4RQCh. 23 - Prob. 5RQCh. 23 - Prob. 6RQCh. 23 - Prob. 7RQCh. 23 - Prob. 8RQCh. 23 - Prob. 9RQCh. 23 - Prob. 10RQCh. 23 - Prob. 11RQCh. 23 - Prob. 12RQCh. 23 - Prob. 13RQCh. 23 - Prob. 14RQCh. 23 - Prob. 15RQCh. 23 - Prob. 16RQCh. 23 - Prob. 17RQCh. 23 - Prob. 18RQCh. 23 - Prob. 19RQCh. 23 - Prob. 20RQCh. 23 - Prob. 21RQCh. 23 - SERIES A EXERCISES IDENTIFICATION OF OPERATING,...Ch. 23 - CHANGE IN CASH AND CASH EQUIVALENTS Olsen Companys...Ch. 23 - Prob. 3SEACh. 23 - Prob. 4SEACh. 23 - GAINS AND LOSSES ON THE SALE OF LONG-TERM ASSETS...Ch. 23 - Prob. 6SEACh. 23 - Prob. 7SEACh. 23 - CASH PAID FOR INTEREST Ball Companys income...Ch. 23 - Prob. 9SPACh. 23 - Prob. 10SPACh. 23 - COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Horn...Ch. 23 - EXPANDED STATE MENT OF CASH FLOWS Financial...Ch. 23 - Prob. 1SEBCh. 23 - Prob. 2SEBCh. 23 - Prob. 3SEBCh. 23 - Prob. 4SEBCh. 23 - Prob. 5SEBCh. 23 - Prob. 6SEBCh. 23 - Prob. 7SEBCh. 23 - Prob. 8SEBCh. 23 - Prob. 9SPBCh. 23 - Prob. 10SPBCh. 23 - COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES...Ch. 23 - EXPANDED STATEMENT OF CASH FLOWS Financial...Ch. 23 - MANAGING YOUR WRITING Direct Method A friend of...Ch. 23 - MASTERY PROBLEM Financial statements for...Ch. 23 - CHALLENGE PROBLEM The long-term liabilities...
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- Using the financial statements and notes provided below, prepare a cash flow analysis for the Penelope Company for 2019. Penelope Company Income Statement For the Year Ended December 31, 2019 $2,467,000 1,285,000 1,182,000 Revenues Cost of Goods Sold Gross Margin Operating Expenses: Selling Expenses Administrative Expenses Depreciation Total Operating Expenses Operating Income 230,000 94,000 15,000 339,000 843,000 Other Items: Loss on Sale of Patent (11,000) (42,000) (53,000) 790,000 316,000 $474,000 Interest Expense Other Items Net Income Before Taxes Тахes Net Income After Taxes A review of the notes to the financial statements revealed the following information: 1. Dividends of $210,000 were declared and paid during the year. 2. Selling Expenses include charges of $10,000 for the amortization of trademarks. 3. During 2019 the company sold the only patent that had been reflected on its balance sheet at the beginning of the year. Hint: Consider the beginning balance in the Patent…arrow_forwardUsing the financial statements and notes provided below, prepare a cash flow analysis for the Penelope Company for 2019. Penelope Company Income Statement For the Year Ended December 31, 2019 Revenues $2,467,000 Cost of Goods Sold 1,285,000 Gross Margin 1,182,000 Operating Expenses: Selling Expenses 230,000 Administrative Expenses 94,000 Depreciation 15,000 Total Operating Expenses 339,000 Operating Income 843,000 Other Items: Loss on Sale of Patent (11,000) Interest Expense (42,000) Other Items (53,000) Net Income Before Taxes 790,000 Taxes 316,000…arrow_forwardFollowing information relate to Hawke Ltd for the financial year ended 2020 Information provided in the images. Additional information:The loss on sale of equipment relates to an item that originally cost $80 000 and had a carrying amount of $20000 when sold.Required: Calculate the following:(a) Cash collected from customers and Cash paid to suppliers (b) Cash paid to employees for wages and salary and Cash spent on plant and equipment (c) Proceeds from sale of equipment andCash paid for insurancearrow_forward
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