Question

The income statement disclosed the following items for the year: Depreciation expense $65,000 Gain on disposal...

The income statement disclosed the following items for the year:

Depreciation expense $65,000
Gain on disposal of equipment 27,500
Net income 620,000

The changes in the current asset and liability accounts for the year are as follows:

Increase
(Decrease)
Accounts receivable $11,200
Inventory (6,350)
Prepaid insurance (1,200)
Accounts payable (4,200)
Income taxes payable 1,650
Dividends payable 2,500

a. 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 out flows, cash payments, decreases in cash, or any negative adjustments.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method.

Net income 620000
Adjustment to reconcile net income
Depreciation 65000
Gain on Disposal of equipment (27500)
Increase account receivable (11200)
Decrease inventory 6350
Decrease prepaid insurance 1200
Decrease account payable (4200)
Increase income tax payable 1650
Net cash flow from operating activities 651300
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The income statement disclosed the following items for the year: Depreciation expense $ 65,000 Gain on...
The income statement disclosed the following items for the year: Depreciation expense $ 65,000 Gain on disposal of equipment 27,500 Net income 620,000 The changes in the current assets and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $11,200 Inventory (6,350) Prepaid insurance (1,200) Accounts payable (4,200) Income taxes payable 1,650 Dividends payable 2,500 Required: A. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to...
The income statement disclosed the following items for the current year: Depreciation expense $36,000 Gain on...
The income statement disclosed the following items for the current year: Depreciation expense $36,000 Gain on disposal of equipment   21,000 Net income 317,500 Balances of the current assets and current liabilities accounts changed between December 31, last year, and December 31, this year, as follows: Increase in accounts receivable $5,600 Decrease in inventory   3,200 Decrease in prepaid insurance   1,200 Decrease in accounts payable   3,800 Increase in income taxes payable   1,200 Increase in dividends payable     850 Prepare the Cash flows from...
The income statement disclosed the following items for 2016: Depreciation expense $65,140 Gain on disposal of...
The income statement disclosed the following items for 2016: Depreciation expense $65,140 Gain on disposal of equipment 29,350 Net income 408,700 Balances of the current assets and current liability accounts changed between December 31, 2015, and December 31, 2016, as follows: Increase (Decrease) Accounts receivable $8,540 Inventory (4,200) Prepaid insurance (1,600) Accounts payable (6,220) Income taxes payable 1,620 Dividends payable 2,270 Required: A. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect...
Cash Flows from Operating Activities—Indirect Method The income statement disclosed the following items for the year:...
Cash Flows from Operating Activities—Indirect Method The income statement disclosed the following items for the year: Depreciation expense $56,100 Gain on disposal of equipment 32,750 Net income 460,500 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $8,740 Inventory (4,980) Prepaid insurance (1,870) Accounts payable (5,930) Income taxes payable 1,870 Dividends payable 1,310 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the...
Cash Flows from Operating Activities—Indirect Method The income statement disclosed the following items for the year:...
Cash Flows from Operating Activities—Indirect Method The income statement disclosed the following items for the year: Depreciation expense $35,300 Gain on disposal of equipment 20,580 Net income 264,900 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $5,490 Inventory (3,130) Prepaid insurance (1,170) Accounts payable (3,720) Income taxes payable 1,170 Dividends payable 820 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the...
Staley Inc. reported the following data: Net income $297,200 Depreciation expense 60,200 Loss on disposal of...
Staley Inc. reported the following data: Net income $297,200 Depreciation expense 60,200 Loss on disposal of equipment 24,500 Increase in accounts receivable 20,500 Increase in accounts payable 10,500 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 out flows, cash payments, decreases in cash, or any negative adjustments.
Staley Inc. reported the following data: Net income $488,200 Depreciation expense 54,800 Loss on disposal of...
Staley Inc. reported the following data: Net income $488,200 Depreciation expense 54,800 Loss on disposal of equipment 30,900 Increase in accounts receivable 10,800 Increase in accounts payable 11,900 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 out flows, cash payments, decreases in cash, or any negative adjustments. Staley Inc. Statement of Cash Flows (partial) Cash flows from operating activities: $ Adjustments to reconcile...
The net income reported on the income statement for the current year was $139,400. Depreciation recorded...
The net income reported on the income statement for the current year was $139,400. Depreciation recorded on store equipment for the year amounted to $23,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of year Beginning of Year Cash $56,740 $51,630 Accounts Recievable (net) 40,680 38,150 Merchandise inventory 55,550 58,080 Prepaid expenses 6,240 4,900 Accounts Payable (merchandise creditors) 53,170 48,840 Wages payable 29,050 31,910 Prepare the Cash...
The net income reported on the income statement for the current year was $250,300. Depreciation recorded...
The net income reported on the income statement for the current year was $250,300. Depreciation recorded on equipment and a building amounted to $74,800 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $66,580 $69,240 Accounts receivable (net) 84,420 85,440 Inventories 166,450 147,200 Prepaid expenses 9,250 9,760 Accounts payable (merchandise creditors) 74,370 77,270 Salaries payable 10,720 9,620 a. Prepare...
The net income reported on the income statement for the current year was $73,600. Depreciation recorded...
The net income reported on the income statement for the current year was $73,600. Depreciation recorded on store equipment for the year amounted to $27,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $23,500 $18,700 Accounts receivable (net) 56,000 48,000 Merchandise inventory 35,500 40,000 Prepaid expenses 4,750 7,000 Accounts payable (merchandise creditors) 21,800 16,800 Wages payable 4,900 5,800 Required: A. Prepare...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT