Statement of Cash Flows (Indirect method)
Particulars
Amount
Cash Flow from operating activities:
Net Income for...
Statement of Cash Flows (Indirect method)
Particulars
Amount
Cash Flow from operating activities:
Net Income for 2019
$58,850
Adjustments:
Gain on sale of land
($8,000)
Gain on sale of long term investment
($4,000)
Depreciation
$35,500
Amortization expense
$5,000
Increase in accounts receivable
($4,550)
Increase in Dividend receivable
($1,000)
Increase in Inventories
($7,000)
Decrease in Prepaid rent
$9,000
Increase in Prepaid Insurance
($1,200)
Increase in Office Supplies
($250)
Decrease in Accounts payable
($4,000)
Increase in Income tax payable
$1,000
Increase in...
The following items involve the cash flow activities of Prizzie
Company for 2020:
Net income
$162,000...
The following items involve the cash flow activities of Prizzie
Company for 2020:
Net income
$162,000
Payment of dividends
25,000
1,000 shares of stock issued at $20 par
20,000
Amortization expense on patents
7,000
Plant assets acquired at a cost of
75,000
Accounts receivable increase of
9,000
Accounts payable decrease of
10,000
Salaries payable increase of
6,500
Beginning cash balance
18,000
Required:
Prepare the statement of cash flows of Prizzie Company for 2020
using the indirect method.
Labels
Financing Activities...
Calculating Net Cash Flow from Operating Activities (Indirect
Method)
Weber Company had a $21,000 net loss...
Calculating Net Cash Flow from Operating Activities (Indirect
Method)
Weber Company had a $21,000 net loss from operations for 2016.
Depreciation expense for 2016 was $8,600 and a 2016 cash dividend
of $6,000 was declared and paid. Balances of the current asset and
current liability accounts at the beginning and end of 2016 follow.
Did Weber Company’s 2016 operating activities provide or use cash?
Use the indirect method to determine your answer.
Ending
Beginning
Cash
$3,500
$7,000
Accounts Receivable
16,000...
Jackson Company gathered the following data to prepare its 20X7
statement of cash flows:
Profit $40,000...
Jackson Company gathered the following data to prepare its 20X7
statement of cash flows:
Profit $40,000
Depreciation expense 5,000
Trade receivables decrease 3,000
Wages payable increase 4,000
Amortization of patent 1,000
Income tax payable decrease 2,000
Based only on the above data, the net cash inflow from
operating activities during 20X7 was which of the
following?
A - $51,000.
B - $53,000.
C - $45,000.
D - $43,000.
Determining Net Cash Flow from Operating Activities: Burch
Company reported the following items in its balance...
Determining Net Cash Flow from Operating Activities: Burch
Company reported the following items in its balance sheet and
income statement: increase in cash account, $20,000; increase in
accounts receivable, $5,000; increase in inventory, $20,000;
increase in accounts payable, $10,000; decrease in income taxes
payable, $1,000; net income, $70,000; depreciation expense,
$25,000. Required: Compute the net cash flows from operating
activities using the indirect method.
Answer to Part A.
Net cash provided by Operating Activities = Cash received from
Customer –...
Answer to Part A.
Net cash provided by Operating Activities = Cash received from
Customer – Cash paid to Suppliers and Employees – Interest Paid –
Taxes Paid
$72,074 = $3,701,327 - Cash paid to Suppliers and Employees -
$28,134 - $42,046
Cash paid to Suppliers and Employees =
$3,559,073
Answer to Part B.
Net Cash used in Investing Activities = Purchase of
Equipment
Net Cash used in Investing Activities =
-$4,272
Answer to Part C.
Net cash used in...
Net Sales
$8,436,500
Cost of Sales
3,374,600
Gross Profit
5,061,900
Operating, selling, and general and administrative...
Net Sales
$8,436,500
Cost of Sales
3,374,600
Gross Profit
5,061,900
Operating, selling, and general and administrative expenses
2,530,950
Operating profit
2,530,950
Interest expense, net
180,650
Income before income taxes
2,350,300
Income tax expense
470,060
Net Income
$1,880,240
james estimates that net sales will increase by 6% in
the year 2018. Cost of Sales are estimated to be 42% of net sales,
Operating, selling, general and administrative expenses are
expected to be 29% of net sales, Interest expense is expected to...
20
In the current year, a company reported cash flow from
operating activities of $100,000, cash...
20
In the current year, a company reported cash flow from
operating activities of $100,000, cash flow from investing
activities of ($60,000), and cash flow from financing activities of
($40,000). In addition, the company paid interest of $20,000, had
net capital expenditures of $50,000, and issued net new debt of
$15,000. The marginal tax rate is 35%. Compute the free cash flow
to the firm for the current year.