Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter 9, Problem 15SEB
To determine
Explain the manner in which the
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Which of the following situations required us to make an downward adjustment to net income (subtracting) when computing operating cash flows? (check all that apply)
A. there was a depreciation expense
B. some property was sold for a gain on the net book value
C. some recognized expenses were for COGS to suppliers paid for on account
D. there were some recognized revenues in accounts receivable
Which of the following would be subtracted from net income when determining cash flows from operating activities?
A. Decreade in prepaid insurance
B. Depreciation expense
C. Increase in accounts payable
D. Gain on the sale of a Depreciation asset
Which of the following items is deducted from net income to arrive at cash flow from operations when using the indirect method?
a) Decrease in accounts payable
b) Depreciation expense
c) Amortization expense
d) Decrease in accounts receivable
Chapter 9 Solutions
Financial Accounting
Ch. 9 - Prob. 1YTCh. 9 - Prob. 2YTCh. 9 - Prob. 3YTCh. 9 - Prob. 4YTCh. 9 - Prob. 5YTCh. 9 - Prob. 1QCh. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - Prob. 4QCh. 9 - Prob. 5Q
Ch. 9 - Which types of business transactions would result...Ch. 9 - Prob. 7QCh. 9 - Which types of business transactions would result...Ch. 9 - Prob. 9QCh. 9 - Prob. 10QCh. 9 - Prob. 11QCh. 9 - Prob. 12QCh. 9 - Prob. 13QCh. 9 - Prob. 14QCh. 9 - Prob. 15QCh. 9 - Prob. 16QCh. 9 - Prob. 1MCQCh. 9 - Prob. 2MCQCh. 9 - Prob. 3MCQCh. 9 - Prob. 4MCQCh. 9 - Prob. 5MCQCh. 9 - Prob. 6MCQCh. 9 - Depreciation for the year was 50,000 and net...Ch. 9 - Accounts receivable decreased by 12,000....Ch. 9 - Prob. 9MCQCh. 9 - Prob. 10MCQCh. 9 - Prob. 1SEACh. 9 - Prob. 2SEACh. 9 - Calculate and identify cash flows. (LO 3, 6). A...Ch. 9 - Prob. 4SEACh. 9 - Prob. 5SEACh. 9 - Prob. 6SEACh. 9 - Prob. 7SEACh. 9 - Prob. 8SEACh. 9 - Prob. 9SEACh. 9 - Prob. 10SEBCh. 9 - Prob. 11SEBCh. 9 - Prob. 12SEBCh. 9 - Prob. 13SEBCh. 9 - Prob. 14SEBCh. 9 - Prob. 15SEBCh. 9 - Prob. 16SEBCh. 9 - Evaluate adjustments to net income under the...Ch. 9 - Prob. 18SEBCh. 9 - Prob. 19EACh. 9 - Prob. 20EACh. 9 - Prob. 21EACh. 9 - Prob. 22EACh. 9 - Prob. 23EACh. 9 - Prob. 24EACh. 9 - Prob. 25EACh. 9 - Prob. 26EACh. 9 - Prob. 27EACh. 9 - Prob. 28EACh. 9 - Prob. 29EACh. 9 - Calculate cash from operating activities using the...Ch. 9 - Prob. 31EACh. 9 - Prob. 32EACh. 9 - Prob. 33EACh. 9 - Prob. 34EBCh. 9 - Prob. 35EBCh. 9 - Prob. 36EBCh. 9 - Prob. 37EBCh. 9 - Prob. 38EBCh. 9 - Prob. 39EBCh. 9 - Prob. 40EBCh. 9 - Prob. 41EBCh. 9 - Prob. 42EBCh. 9 - Prob. 43EBCh. 9 - Prob. 44EBCh. 9 - Prob. 45EBCh. 9 - Prob. 46EBCh. 9 - Prob. 47EBCh. 9 - Prob. 48EBCh. 9 - Prob. 49PACh. 9 - Prob. 50PACh. 9 - Prob. 51PACh. 9 - Prob. 52PACh. 9 - Prob. 53PACh. 9 - Prob. 54PACh. 9 - Prob. 55PACh. 9 - Prob. 56PACh. 9 - Prob. 57PBCh. 9 - Prob. 58PBCh. 9 - Prob. 59PBCh. 9 - Prob. 60PBCh. 9 - Prob. 61PBCh. 9 - Prob. 62PBCh. 9 - Prob. 63PBCh. 9 - Prob. 64PBCh. 9 - Prob. 1FSACh. 9 - Prob. 2FSACh. 9 - Prob. 3FSACh. 9 - Prob. 1CTPCh. 9 - Prob. 2IE
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- Fill in the blanks: For calculating cash flow from operating activities, provision for doubtful debts is ________________ the profit made during the year (added to/deducted from).arrow_forwardWhich of the following statements regarding the operating activities section of the statement of cash flows is true? O When using the indirect method, the adjustment for depreciation expense equals the sum of the debits to the Accumulated Depreciation account. O When using the indirect method, a loss on the sale of old Property, Plant, and Equipment is subtracted from net income. O When using the direct method, an increase in the Accounts Receivable account is added to sales revenue to compute cash collected from customers. O When using the indirect method, an increase in the Property, Plant and Equipment account is subtracted from net income. O When using ect method, an increase in the Prepaid Auto Insurance Expense account is added to operating expenses to compute cash paid for operating expenses.arrow_forwardWhich of the following would be subtracted from net income when using the indirect method to derive net cash from operating activities? a. Decrease in accounts payable b. Loss on sale of investments c. Decrease in accounts receivable d. Depreciation expensearrow_forward
- Given the items below, which of the following is a subtraction from net income to arrive at operating cash flows using the indirect method? I. Loss on sale of assets II. Increase in Supplies III. Increase in Accounts Payable IV. Depreciation expensearrow_forwardWhich of the following should be subtracted from net income in computing net cash flows from operating activities using the indirect method? a.A decrease in accounts receivable b.A loss on a sale of equipment c.An increase in accounts payable d.A gain on a sale of equipmentarrow_forwardI need help to determine the following; Using the indirect method, I need help to determine the Statement of Cash Flows for the yeararrow_forward
- What is the statement of cash flows? List down three types of activities disclosed in the statement of cash flows with at least two examples for each activity. Open the relevant accounts to find: Tax paid Interest paid Dividend paid Interest received Gain on disposal (if cash received from sale of non-current asset is given) Cash received from sale of non-current asset (if loss on disposal is given)arrow_forwardWhich of the following statements is true when computing the net cash provided by (used in) operating activities using the Indirect method? Multiple Cholce If the property, plant, and equlpment balance Increases during the perlod, the amount of the Increase is added to net Income. If the prepald expenses balance Increases during the perlod, the amount of the Increase is added to net Income. If the property, plant, and equipment balance Increases during the perlod, the amount of the Increase is subtracted from net Income. If the prepald expenses balance Increases during the perlod, the amount of the Increase is subtracted from net Income.arrow_forwardThis is an accounting question about reconciling direct-method cash flow from operations to net income. I have read that generally for a simple noninventory situation the approach would be something like: Net Income Plus depreciation Minus Change in Current Assets Plus Change in Current Liabilities --> Should equal cash flows from operations in the cash flow statement. My question is about purchasing a long-term asset on account. A journal entry is made: credit accounts payable/debit long-term asset. If I generate a cash flow statement, the increase in current liabilities caused by that entry will be a part of the equation above. But that amount is not an operating cash flow, it is an investing cash flow. So my reconciliation to operating activities will be off by that amount. It seems like there's a missing adjustment in the equation, like "Minus assets purchased on account" or something like that. Example: Say my company just started and so far only has $5K contibuted cash in the…arrow_forward
- One of the basic techniques used in evaluating after-tax operating cash flows is to Select one: a. add cash expenses to net income. b. subtract depreciation from net income. c. add noncash charges to net income. d. subtract retained earnings from net income.arrow_forwardKennedy, Inc., reported the following data: Net income Depreciation expense Loss on disposal of equipment Gain on sale of building Increase in accounts receivable Decrease in accounts payable Prepare the operating activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash outflows, a decrease in cash, cash payments, or any negative adjustments. $133,712 16,162 (10,474) 21,575 8,728 (2,832) Kennedy, Inc. Statement of Cash Flows Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: 100 000arrow_forwardKennedy, Inc. reported the following data: Net income Depreciation expense Loss on disposal of equipment Gain on sale of building Increase in accounts receivable Decrease in accounts payable 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, a decrease in cash, cash payments, or any negative adjustments. Cash flows from operating activities: $152,168 12,599 (10,151) 19,285 8,486 (3,847) Kennedy, Inc. Statement of Cash Flow Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: 0 000 0arrow_forward
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