Question

The list includes all balance sheet accounts related to cash from operating activities. Case X Case...

The list includes all balance sheet accounts related to cash from operating activities.

Case X Case Y Case Z
Net income $ 4,400 $ 110,000 $ 79,200
Depreciation expense 33,000 8,800 26,400
Accounts receivable increase (decrease) 44,000 22,000 (4,400 )
Inventory increase (decrease) (22,000 ) (11,000 ) 11,000
Accounts payable increase (decrease) 26,400 (24,200 ) 15,400
Accrued liabilities increase (decrease) (48,400 ) 13,200 (8,800 )

For each of the above separate cases X, Y, and Z, compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

Cash Flows from Operating Activities (Indirect)
Case X Case Y Case Z
Net Income $4,400 $110,000 $79,200
Adjustments to reconcile net income to net cash provided by operations:
Depreciationselected answer correct 33,000selected answer correct 8,800selected answer correct 26,400selected answer correct
Accounts receivableselected answer correct 44,000selected answer incorrect 22,000selected answer incorrect 4,400selected answer correct
Inventoriesselected answer correct 22,000selected answer correct 11,000selected answer correct 11,000selected answer incorrect
Accounts payableselected answer correct 26,400selected answer correct 24,200selected answer incorrect 15,400selected answer correct
Accrued liabilitiesselected answer correct 48,400selected answer incorrect 13,200selected answer correct 8,800selected answer incorrect
Cash provided by (used for) operating activitiesselected answer correct $178,200 $189,200 $145,200
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Answer #1

Cash Flows from Operating Activities (Indirect)

Case X

Case Y

Case Z

Net Income

$4,400

$110,000

$79,200

Adjustments to reconcile net income to net cash provided by operations:

Add:- Depreciation

33,000

8,800

26,400

Less:- Increase in Accounts Receivable

(44,000)

(22,000)

-

Add:- Decrease in Account Receivable

--

-

4400

Less:- Increase in Inventories

(11,000)

Add:- Decrease in Inventories

22,000

11,000

-

Add:- Increase in Accounts payables

26,400

-

15,400

Less:- Decrease in Account Payable

(24200)

Add:- Increase in Accrued liabilities

-

13,200

-

Less:- Decrease in Accrued Liabilities

(48,400)

-

(8,800)

Cash provided by (used for) operating activities

(6600)

96,800

1,05,600
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