Question

Selected balance sheet information and the income statement for Fountainhead Corporation for the current year are...

Selected balance sheet information and the income statement for Fountainhead Corporation for the current year are presented below.

  

Selected Balance Sheet Accounts

Prior Year

Current Year
  Accounts Receivable $ 28,300 $ 19,500
  Merchandise Inventory 39,000 42,900
  Prepaid Rent 2,900 0
  Accounts Payable 22,400 29,200
  Salaries and Wages Payable 5,800 8,700
Income Statement
  Sales Revenue $ 585,000
  Expenses:
     Cost of Goods Sold 332,000
     Depreciation Expense 39,000
     Salaries Expense 58,500
     Rent Expense 23,400
     Insurance Expense 23,400
     Interest Expense 21,450
     Utilities Expense 19,500
  Net Income $ 67,750

    

Required:

Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Enter any deductions and cash outflows as a negative value.)

  
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method

Cash flow from operating activities
Net income 67750
Adjustment to reconcile net income to net cash flow from operating activities
Depreciation expense 39000
Decrease account receivable 8800
Increase inventory -3900
Decrease prepaid rent 2900
Increase account payable 6800
Increase salaries and wages payable 2900
56500
Net cash flow from operating activities 124250
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 and selected balance sheet information for Direct Products Company for the year ended...
The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below. Income Statement   Sales Revenue $ 45,600   Expenses:        Cost of Goods Sold 19,500        Depreciation Expense 1,700        Salaries and Wages Expense 8,700        Rent Expense 4,200        Insurance Expense 1,750        Interest Expense 1,650        Utilities Expense 1,250   Net Income $ 6,850 Selected Balance Sheet Accounts Ending Balances Beginning Balances   Accounts Receivable $ 575     $ 610       Inventory 860     705       Accounts Payable...
The income statement and selected balance sheet information for Calendars Incorporated for the year ended December...
The income statement and selected balance sheet information for Calendars Incorporated for the year ended December 31 is presented below. Income Statement   Sales Revenue $ 72,000   Expenses:        Cost of Goods Sold 33,000        Depreciation Expense 15,400        Salaries and Wages Expense 9,400        Rent Expense 1,900        Insurance Expense 1,000        Interest Expense 900        Utilities Expense 700      Net Income $ 9,700    Selected Balance Sheet Accounts Ending Balances Beginning Balances   Inventory $ 435 $ 500   Accounts Receivable 1,500 1,260   Accounts Payable 1,360 1,620   Salaries...
The income statement and selected balance sheet information for Direct Products Company for the year ended...
The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below. Income Statement   Sales Revenue $ 42,600   Expenses:        Cost of Goods Sold 18,000        Depreciation Expense 1,400        Salaries and Wages Expense 8,400        Rent Expense 3,900        Insurance Expense 1,600        Interest Expense 1,500        Utilities Expense 1,100   Net Income $ 6,700 Selected Balance Sheet Accounts Ending Balances Beginning Balances   Accounts Receivable $ 565     $ 590       Inventory 830     690       Accounts Payable...
The income statement and selected balance sheet information for Direct Products Company for the year ended...
The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below. Income Statement   Sales Revenue $ 42,600   Expenses:        Cost of Goods Sold 18,000        Depreciation Expense 1,400        Salaries and Wages Expense 8,400        Rent Expense 3,900        Insurance Expense 1,600        Interest Expense 1,500        Utilities Expense 1,100   Net Income $ 6,700 Selected Balance Sheet Accounts Ending Balances Beginning Balances   Accounts Receivable $ 565     $ 590       Inventory 830     690       Accounts Payable...
Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities)...
Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2016 and 2017, follow. LANSING COMPANY Income Statement For Year Ended December 31, 2017 Sales revenue $142,200 Expenses Cost of goods sold 57,000 Depreciation expense 19,500 Salaries expense 33,000 Rent expense 10,500 Insurance expense 5,300 Interest expense 5,100 Utilities expense 4,300 Net income $7,500    LANSING COMPANY Selected Balance Sheet Accounts At December 31 2017 2016 Accounts receivable $7,100 $8,800 Inventory...
Lansing Company’s current-year income statement and selected balance sheet data at December 31 of the current...
Lansing Company’s current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $ 133,200 Expenses Cost of goods sold 54,000 Depreciation expense 18,000 Salaries expense 30,000 Rent expense 10,200 Insurance expense 5,000 Interest expense 4,800 Utilities expense 4,000 Net income $ 7,200    LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 6,800...
Lansing Company’s 2015 income statement and selected balance sheet data (for current assets and current liabilities)...
Lansing Company’s 2015 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2014 and 2015, follow. LANSING COMPANY Income Statement For Year Ended December 31, 2015 Sales revenue $ 64,000 Expenses Cost of goods sold 19,000 Depreciation expense 4,500 Salaries expense 8,000 Rent expense 2,500 Insurance expense 1,900 Interest expense 1,800 Utilities expense 1,100 Net income $ 25,200 LANSING COMPANY Selected Balance Sheet Accounts At December 31 2015 2014 Accounts receivable $ 3,700...
The following information applies to the questions displayed below.] Lansing Company’s current-year income statement and selected...
The following information applies to the questions displayed below.] Lansing Company’s current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $ 118,200 Expenses Cost of goods sold 49,000 Depreciation expense 15,500 Salaries expense 25,000 Rent expense 9,700 Insurance expense 4,500 Interest expense 4,300 Utilities expense 3,500 Net income $ 6,700    LANSING COMPANY Selected Balance Sheet Accounts At December...
Income Statement Data Selected Year-End Balance Sheet Data Revenues $ 110,000 Accounts receivable decrease $ 29,000...
Income Statement Data Selected Year-End Balance Sheet Data Revenues $ 110,000 Accounts receivable decrease $ 29,000 Expenses Purchased a machine for cash 20,000 Salaries expense 68,000 Salaries payable increase 26,000 Utilities expense 30,000 Other accrued liabilities decrease 16,000 Depreciation expense 32,400 Other expenses 7,700 Net loss $ (28,100 ) Required: 1. Prepare the operating activities section of the statement of cash flows using the indirect method. (Any losses or amounts to be deducted should be indi
Hampton Company reports the following information for its recent calendar year. Income Statement Data Selected Year-End...
Hampton Company reports the following information for its recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data Sales $ 78,000 Accounts receivable increase $ 5,000 Expenses Inventory decrease 4,000 Cost of goods sold 36,000 Salaries payable increase 800 Salaries expense 11,000 Depreciation expense 7,000 Net income $ 24,000 Required:Prepare the operating activities section of the statement of cash flows for Hampton Company using the indirect method. Cash flows from operating activities $0
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT