Question

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 25,000
Inventory 50,000 53,000
Prepaid Expenses 6,000 9,000
Accounts Payable 12,000 8,000
Accrued Liabilities 5,000 7,600
Net loss $Answer
Add (deduct) items to convert net loss to cash basis
Add back depreciation Answer
Subtract change in operating assets:
Accounts receivable Answer
Inventory Answer
Prepaid expenses Answer
Add change in operating liabilities:
Accounts payable Answer
Accrued liabilities Answer
Net cash provided by operating activities $Answer

Weber Company's 2016 operating activities (Fill in the blank: provided or used ? ) cash.

Homework Answers

Answer #1
Net loss -21000
Add (deduct) items to convert net loss to cash basis
Add back depreciation 8600
Subtract change in operating assets:
Accounts receivable 9000 =25000-16000
Inventory 3000 =53000-50000
Prepaid expenses 3000 =9000-6000
Add change in operating liabilities:
Accounts payable 4000 =12000-8000
Accrued liabilities -2600 =5000-7600
Net cash provided by operating activities 4000
Weber Company's 2016 operating activities provided cash
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
Net Cash Flow from Operating Activities (Indirect Method) Lincoln Company owns no plant assets and reported...
Net Cash Flow from Operating Activities (Indirect Method) Lincoln Company owns no plant assets and reported the following income statement for the current year. Sales $ 810,000 Cost of goods sold $ 470,000 Wages expense 110,000 Rent expense 42,000 Insurance expense 15,000 637,000 Net income $ 173,000 Additional balance sheet information about the company follows. End of Year Beginning of Year Accounts receivable $ 54,000 $ 49,000 Inventory 60,000 65,000 Prepaid insurance 10,000 7,000 Accounts payable 22,000 17,000 Wages payable...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $116,500. Depreciation recorded on store equipment for the year amounted to $19,200. 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 $47,530 $43,730 Accounts receivable (net) 34,080 32,320 Merchandise inventory 46,530 49,200 Prepaid expenses 5,230 4,150 Accounts payable (merchandise creditors) 44,540 41,370 Wages...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $137,900. Depreciation recorded on store equipment for the year amounted to $22,800. 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 $53,640 $48,810 Accounts receivable (net) 38,460 36,070 Merchandise inventory 52,510 54,910 Prepaid expenses 5,900 4,640 Accounts payable (merchandise creditors) 50,260 46,170 Wages...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $244,900. Depreciation recorded on equipment and a building amounted to $73,200 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 $64,900 $68,790 Accounts receivable (net) 82,290 84,890 Inventories 162,250 146,250 Prepaid expenses 9,020 9,700 Accounts payable (merchandise creditors) 72,490 76,770...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $135,500. Depreciation recorded on store equipment for the year amounted to $22,400. 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 $54,060 $49,190 Accounts receivable (net) 38,760 36,350 Merchandise inventory 52,920 55,340 Prepaid expenses 5,950 4,670 Accounts payable (merchandise creditors) 50,650 46,530 Wages...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $120,600. Depreciation recorded on store equipment for the year amounted to $19,900. 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 $49,330 $44,890 Accounts receivable (net) 35,370 33,170 Inventories 48,290 50,500 Prepaid expenses 5,430 4,260 Accounts payable (merchandise creditors) 46,220 42,470 Wages payable...
4. Using the indirect method, calculate the amount of net cash flows from operating activities from...
4. Using the indirect method, calculate the amount of net cash flows from operating activities from the following data. Show your work Net Income $83,000 Beginning Accounts Payable $ 6,000 Beginning Accounts Receivable 10,000 Ending Accounts Payable 5,600 Ending Accounts Receivable 8,800 Amortization of Intangible Assets 1,600 Ending Prepaid Expenses 2,800 Dividends Declared and Paid 4,400
P13-3A Prepare the operating activities section - indirect method The income statement of Whitlock Company is...
P13-3A Prepare the operating activities section - indirect method The income statement of Whitlock Company is presented here. WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2015 Sales revenue $7,700,000 Cost of goods sold     Beginning inventory $1,900,000     Purchases 4,400,000     Goods available for sale 6,300,000     Ending inventory 1,400,000 Total cost of goods sold 4,900,000 Gross profit 2,800,000 Operating expenses 1,150,000 Net income 1,650,000 Additional information: 1. Accounts receivable increased $200,000 during the year, and inventory...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $135,100. Depreciation recorded on store equipment for the year amounted to $22,300. 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 $53,630 $49,340 Accounts receivable (net) 38,450 36,460 Merchandise inventory 52,500 55,510 Prepaid expenses 5,900 4,690 Accounts payable (merchandise creditors) 50,250 46,680 Wages...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $117,600. Depreciation recorded on store equipment for the year amounted to $19,400. 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 $45,630 $41,520 Accounts receivable (net) 32,720 30,680 Merchandise inventory 44,670 46,710 Prepaid expenses 5,020 3,940 Accounts payable (merchandise creditors) 42,760 39,280 Wages...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT