Question

The financial statements of Vargas Corp. provide the following information. Calculate the cash provided from operating...

The financial statements of Vargas Corp. provide the following information. Calculate the cash provided from operating activities.

Net Income $250,000, Depreciation expense $19,000, Loss on the Disposal of Equipment $8,000, Increase in Accounts Receivable $11,000, Decrease in Inventory $2,500, Increase in Pre-Paid expenses $4,000, Dividends Paid $5,500, Increase in Accounts Payable $15,000, Decrease in Income Tax Payable $2,500.

Homework Answers

Answer #1
Statement of Cash Flows (Partial)
Cash flow from Operating Activities
Net income 250,000
Add: Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Depreciation expense 19,000
Loss on disposal of equipment 8,000
Changes in current operating assets and liabilities:
increase in Accounts Receivable -11,000
Decrease in Inventory 2,500
Increase in Pre-Paid expenses -4,000
Increase in Accounts Payable 15,000
Decrease in Income Tax Payable -2,500
Net cash provided by Operating Activities 277,000

The cash provided from operating activities = $277,000

Please give a positive rating if you are satisfied with this solution and if you have any query kindly ask.Thanks!!!

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
Calculate cash flow from operating activities using the following information. Net income                           &nbs
Calculate cash flow from operating activities using the following information. Net income                                   60,000           Purchase of new machine          35,000 Depreciation expense                  10,000            Increase in Accts. Receivable     15,000 Loss on sale of machine                  9,000    Decrease in Prepaid Expenses    7,000 Increase in Accts. Payable         14,000 Decrease in Accrued Liabilities 4,000
Morrison Corporation's comparative financial statements included the following amounts for the current​ year: Depreciation expense ​$102,000...
Morrison Corporation's comparative financial statements included the following amounts for the current​ year: Depreciation expense ​$102,000 Loss on sale of fixed assets ​38,000 Decrease in fixed assets ​155,000 Increase in accounts receivable ​37,000 Decrease in accounts payable ​42,000 Decrease in inventory ​71,000 Increase in taxes payable ​19,000 Net income ​72,000 Compute net cash provided by operating activities using the indirect method.
The net income for the current year was $30,000. The following items occurred throughout the year....
The net income for the current year was $30,000. The following items occurred throughout the year. Using the indirect method, determine the net cash provided/(used) by operating activities. Decrease in Cash of 3,500 Increase in short-term investments of $4,500 Decrease in inventory of $6,000 Decrease in prepaid expenses of $1,000 Increase in accounts receivable of $5,500 Loss on disposal of plant asset $3,000 Increase in salary payable of $2,000 Decrease in accounts payable of $7,000 Increase in dividends payable of...
Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For...
Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2018 Net sales $1,675,000 Expenses: Cost of goods sold $1,000,000 Operating expenses 510,000 Depreciation expense 45,000 Income tax expense 35,000 Total expenses 1,590,000 Net income $ 85,000 PEACH COMPUTER Selected Balance Sheet Data December 31 2018 2017 Increase (I) or Decrease (D) Cash $97,000 $82,500 $14,500 (I) Accounts receivable 46,500 51,500 5,000 (D) Inventory 70,000 52,500 17,500 (I) Prepaid...
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...
The independent cases are listed below that includes all items relevant to operating activities: Case A...
The independent cases are listed below that includes all items relevant to operating activities: Case A Case B Case C Sales revenue $ 65,000 $ 55,000 $ 96,000 Cost of goods sold 35,000 26,000 65,000 Depreciation expense 10,000 2,000 26,000 Salaries and wages expense 5,000 13,000 8,000 Net income (loss) 15,000 14,000 (3,000 ) Accounts receivable increase (decrease) (1,000 ) 4,000 3,000 Inventory increase (decrease) 2,000 0 (3,000 ) Accounts payable increase (decrease) 0 2,500 (1,000 ) Salaries and wages...
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...
Based on the following information determine the Net Cash provided or used by operating activities. Net...
Based on the following information determine the Net Cash provided or used by operating activities. Net Income – Rs 15,200 Depreciation Expense – Rs 10,000 Cash payment for accounts payable- 8,000 Gain on sale of land – 3,000 Increase in  inventory – 1,500 Increase in accounts payable – 2,850
Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and information...
Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and information about changes in noncash current assets and current liabilities are reported. SONAD COMPANY Income Statement For Year Ended December 31, 2017 Sales $ 1,828,000 Cost of goods sold 991,000 Gross profit 837,000 Operating expenses Salaries expense $ 245,535 Depreciation expense 44,200 Rent expense 49,600 Amortization expenses–Patents 4,200 Utilities expense 18,125 361,660 475,340 Gain on sale of equipment 6,200 Net income $ 481,540 Changes in...
Drax Corporation has the following financial statements:
Drax Corporation has the following financial statements:Drax CorporationIncome StatementFor the Year Ended December 31, 2020Net sales$165,000Cost of goods sold97,500Gross profit67,500Operating expenses27,500Income from operations40,000Interest expense3,500Income before income taxes36,500Income taxes11,000Net income$ 25,500Drax CorporationComparative Statement of Financial PositionAs at December 31Cash$15,000$9,750Accounts receivable11,7508,750Inventories16,50011,750Prepaid insurance2,5002,000Equipment25,50033,500Accumulated depreciation—equipment(16,250)(17,750)Total assets$55,000$48,000Accounts payable$5,000$6,750Wages payable2,0002,000Income taxes payable3,0001,000Long-term note payable08,750Common shares15,00015,000Retained earnings30,00014,500Total liabilities and shareholders’ equity$55,000$48,000Additional information:·        Equipment that cost $8,000 was sold for the carrying amount of $3,750·        Dividends declared and paid were $10,000.Required1.      Prepare the operating activities section for the statement of cash...