Question

Using the indirect method, categorize the following transaction to the appropriate activity for the year ended...

Using the indirect method, categorize the following transaction to the appropriate activity for the year ended 12/31/21 and indicate the cash effect if any.  

Inventory at December 31, 2020 and 2021, was $200,000 and $250,000, respectively

Homework Answers

Answer #1

Category

This section reports cash flows and outflows that stem directly from a company's main business activities. These activities may include buying and selling inventory and supplies, along with paying its employees their salaries.

Such activity is covered under cash flows from operating activities. As per indirect method of computing cash flow statement .

Net cash flows of above activity is shown as adjustment to assets and liabilities from operating cash flows

Answer for net cash flow from above activity is (50000)as increase in current assets in december 2021 with respect to december 2020

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Using the indirect method, categorize the following transaction to the appropriate activity for the year ended...
Using the indirect method, categorize the following transaction to the appropriate activity for the year ended 12/31/21 and indicate the cash effect if any. Issued 5,000 shares of common stock for $70,000
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available...
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: The inventory at January 1, 2019, had a retail value of $31,000 and a cost of $11,000 based on the conventional retail method. Transactions during 2019 were as follows: Cost Retail Gross purchases $ 570,000 $ 953,000 Purchase returns 6,000 4,000 Purchase discounts 5,000 Gross sales 958,000 Sales returns 5,000 Employee discounts 3,000 Freight-in 20,000 Net markups 20,000 Net markdowns 4,000 Sales...
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available...
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: The inventory at January 1, 2019, had a retail value of $31,000 and a cost of $11,000 based on the conventional retail method. Transactions during 2019 were as follows: Cost Retail Gross purchases $ 570,000 $ 953,000 Purchase returns 6,000 4,000 Purchase discounts 5,000 Gross sales 958,000 Sales returns 5,000 Employee discounts 3,000 Freight-in 20,000 Net markups 20,000 Net markdowns 4,000 Sales...
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available...
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: The inventory at January 1, 2019, had a retail value of $31,000 and a cost of $11,000 based on the conventional retail method. Transactions during 2019 were as follows: Cost Retail Gross purchases $ 570,000 $ 953,000 Purchase returns 6,000 4,000 Purchase discounts 5,000 Gross sales 958,000 Sales returns 5,000 Employee discounts 3,000 Freight-in 20,000 Net markups 20,000 Net markdowns 4,000 Sales...
13) When using the indirect method to prepare the operating section of a statement of cash...
13) When using the indirect method to prepare the operating section of a statement of cash flows, a gain on the sale of equipment and the amortization of bond discount would both be added back as an adjustment to net income. (answer True or False) 14) The following information on selected cash transactions for 2021 has been provided by York Company:           Proceeds from sale of land                     $290,000           Proceeds from long-term borrowings     480,000           Purchases of inventories                       1,020,000          ...
Exercise 11-11A Calculate operating activities—indirect method (LO11-3) Portions of the financial statements for Peach Computer are...
Exercise 11-11A Calculate operating activities—indirect method (LO11-3) Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2021 Net sales $ 1,975,000 Expenses: Cost of goods sold $ 1,120,000 Operating expenses 630,000 Depreciation expense 57,000 Income tax expense 47,000 Total expenses 1,854,000 Net income $ 121,000 PEACH COMPUTER Selected Balance Sheet Data December 31 2021 2020 Increase (I) or Decrease (D) Cash $ 109,000 $ 88,500 $ 20,500 (I)...
Lemon Co. uses the dollar-value LIFO inventory method, which it adopted on December 31, 2020. Lemon's...
Lemon Co. uses the dollar-value LIFO inventory method, which it adopted on December 31, 2020. Lemon's entire inventory constitutes a single dollar-value LIFO pool. On December 31, 2020 the inventory was $1,200,000 under the dollar-value LIFO method. Inventory data for 2021 are as follows: 12/31/21 inventory at year-end prices $ 1,450,000 Relevant price index at year end (base year 2020) 110 Using dollar value LIFO, Lemon's inventory at December 31, 2021 is $_____________. (In your cacluations, round all amounts to...
Bonita Company had ending inventory at end-of-year prices of $98,000 at December 31, 2019; $117,502 at...
Bonita Company had ending inventory at end-of-year prices of $98,000 at December 31, 2019; $117,502 at December 31, 2020; and $131,400 at December 31, 2021. The year-end price indexes were 100 at 12/31/19, 110 at 12/31/20, and 120 at 12/31/21. Compute the ending inventory for Bonita Company for 2019 through 2021 using the dollar-value LIFO method.
A company (the investor) purchased $39,000 of 8%, 5-year bonds from the investee on January 1,...
A company (the investor) purchased $39,000 of 8%, 5-year bonds from the investee on January 1, 2020. The bonds sold for $42,800. Using the effective-interest method, the investor company amortized the premium/discount for the investee bonds by $277 and $334 on 12/31/2020 and 12/31/2021, respectively At December 31, 2020, the fair value of the investee bonds was $30,000. At December 31, 2021, the fair value of the investee bonds was $51,000 What should the investor company report as unrealized holding...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT