Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Textbook Question
Chapter 9, Problem 7MCQ
Depreciation for the year was $50,000 and net income was $139,500. If the company’s transactions were all cash except those related to long-term assets, how much was net cash from operating activities?
- a. $139,500
- b. $189,500
- c. $89,500
- d. It cannot be determined from the given information.
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Students have asked these similar questions
Using the Exhibit below, assume that the depreciation expense on the Income Statement for the year was $38,000. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of depreciation expense on the Cash flow from operating activities section?
EXHIBIT
Increase
(Decrease)
Net Income (loss) $XXX
Adjustments to reconcile net income to net cash flow
from operating activities:
Depreciation of fixed assets XXX
Losses on disposal of assets XXX
Gains on disposal of assets (XXX)
Changes in current operating assets and liabilities:…
The Net Profit of LSLS Corporation for the year is $ 2,515,250. Using the following information in
the table and find out the Net Cash Flows from Operating Activities by Indirect Method
SI. No :
Particulars
Amount ($)
1
Depreciation Expense
25,565.00
Decrease in Current Liabilities
57,677.00
3
Increase in Prepaid Insurance
67,076.00
4
Loss on Sale of Machinery
322,387.00
Gain on sale of Non Current Asset
377,553.00
6
Increase in Salaries Payable
64,704.00
7
Provision for Taxation
123,321.00
$ 2,584,921
O $ 2,548,921
O $ 2,544,921
O $ 2,458,921
Kendall Corners Inc. recently reported net income of $3.1 million and depreciation of $500,000. What was its net cash flow? Assume it had no amortization expense.
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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- Staley Inc. reported the following data: Net income: $465,400 Depreciation expense: $68,100 Loss on disposal of equipment: $29,900 Increase in accounts receivable: $21,700 Increase in accounts payable: $12,700 Compute cash flow from operating activitiesarrow_forwardDuring the reporting period, a machine with an acquisition cost of 6720 euros and accumulated depreciation of 5040 euros was sold for 2000 euros. Depreciation of 672 euros was recorded during the reporting period. In the statement of cash flows prepared using the indirect method, what is the amount of depreciation in the section Cash flow from operating (business) activities as an adjustment to profit?arrow_forwardThe income statement shows depreciation expense of $25,000. How is the expense handled when computing net cash provided by operating activities? Question 6 options: Added in cash provided by operating activities Subtracted from cash provided by operating activities Can ignore, it is included in the net income amount Reported in a note to the statement not within the statementarrow_forward
- G company has an increase in its net fixed assets of $800. Depreciation = $140. How much did the company spend on net fixed assets? A source or use of cash? $800, source $800, use $940, source $940, usearrow_forwardUse the following data from Albuquerque Company's financial statements to determine operating net cash flows (indirect method): Net income Change in accumulated depreciation (no sale of depreciable assets this year) Loss on sale of company truck $325,000 26,200 7,800arrow_forwardAn analysis of the general ledger accounts indicates that delivery equipment, which cost $200,000 and on which accumulated depreciation totaled $60,000 on the date of sale, was sold for $132,500 during the year. Using this information, indicate the items to be reported on the statement of cash flows. Transaction Section of Statement of Cash Flows Added or Deducted $200,000 cost of equipment $60000 accumulated depreciation $132,500 sales price $7,500 loss on sale of equipment(assume the indirect method is used)arrow_forward
- Sheridan Company reported net income of $191,310. It reported depreciation expense of $14,690 and accumulated depreciation of $51,280. Amortization expense was $8,720. Sheridan Company purchased new equipment during the year for $52,970.Determine net cash provided by operating activities under the indirect method. Net cash provided by operating activities $enter net cash provided by operating activities in dollarsarrow_forwardOperating expenses other than depreciation for the year were $301,000. Accrued expenses decreased by $33,000 during the year. Cash payments for operating expenses to be reported on the statement of cash flows using the direct method would be a.operating expenses other than depreciation, or $301,000. b.operating expenses other than depreciation minus any decrease in current liabilities, or $301,000 – $33,000 = $268,000. c.operating expenses other than depreciation plus any decrease in current liabilities or minus an increase in current liabilities, or $301,000 + $33,000 = $334,000. d.accrued expenses of $33,000.arrow_forwardThe following information is available from the current period financial statements: Net income $119,730 Depreciation expense 23,494 Increase in accounts receivable 17,600 Decrease in accounts payable (23,600) The net cash flows from operating activities using the indirect method is a.$102,024 b.$119,730 c.$184,424 d.$55,036arrow_forward
- Bryant Company reports net income of $23,600. For the year, depreciation expense is $10,600 and the company reports a gain of $6,600 from sale of machinery. It also had a $5,600 loss from retirement of notes. Compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) Cash Flows from Operating Activities (Indirect) Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting casharrow_forwardThe data given below are from the accounting records of the Kuhn Company: Net Income (accrual basis) Depreciation Expense P45,000 P 9,000 Based on this information, the cash provided by operating activities using the indirect method would be: Decrease in Accounts Payable . P 2,500 Decrease in Merchandise Inventory P 3,000arrow_forwardThe following information is available from the current period financial statements: Net income $106,740 Depreciation expense 37,256 Increase in accounts receivable 16,396 Decrease in accounts payable 24,416 The net cash flows from operating activities using the indirect method is Oa. $184,808 Ob. $77,504 Oc. $103,184 Od. $53,088arrow_forward
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The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License