Question

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.

Homework Answers

Answer #1

Formula for calculating the net cash flow from operating activities under indirect method:

Net income

+ Non cash expense

+ Non operating losses

- Non operating gains

+ Decrease in current assets

- Increase in current assets

+ Increase in current liabilities

- Decrease in current liabilities

= Net cash flow from operating activities.

By using the above formula we can calculate cash flow from operating activities under indirect method.

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
Morrison Corporation's comparative financial statements included the following amounts for the current​ year: maturity is 16.5...
Morrison Corporation's comparative financial statements included the following amounts for the current​ year: maturity is 16.5 years from now. Yield to maturity = 3.6%. Par value = $2,000. Current price = $1,578. Bond payments are semiannual. What is the coupon rate?
Changes in Current Operating Assets and Liabilities—Indirect Method Victor Corporation's comparative balance sheet for current assets...
Changes in Current Operating Assets and Liabilities—Indirect Method Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $29,600 $25,500 Inventory 53,900 62,000 Accounts payable 12,600 11,000 Dividends payable 18,000 19,000 Adjust net income of $87,100 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $
Changes in Current Operating Assets and Liabilities—Indirect Method Blue Circle Corporation's comparative balance sheet for current...
Changes in Current Operating Assets and Liabilities—Indirect Method Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $24,700 $21,500 Inventory 69,300 79,600 Accounts payable 14,300 12,500 Dividends payable 19,000 18,000 Adjust net income of $81,800 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $_________
Changes in Current Operating Assets and Liabilities—Indirect Method Mohammed Corporation's comparative balance sheet for current assets...
Changes in Current Operating Assets and Liabilities—Indirect Method Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $14,200 $13,800 Inventory 64,600 65,300 Accounts payable 11,500 11,200 Dividends payable 21,000 23,000 Adjust net income of $106,800 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
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...
Changes in Current Operating Assets and Liabilities—Indirect Method Blue Circle Corporation's comparative balance sheet for current...
Changes in Current Operating Assets and Liabilities—Indirect Method Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $31,000 $26,700 Inventory 54,600 61,300 Accounts payable 15,600 19,500 Dividends payable 30,000 28,000 Adjust net income of $127,200 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
Changes in Current Operating Assets and Liabilities—Indirect Method Covington Corporation's comparative balance sheet for current assets...
Changes in Current Operating Assets and Liabilities—Indirect Method Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $14,000 $12,100 Inventory 62,400 71,700 Accounts payable 16,600 20,500 Dividends payable 22,000 24,000 Adjust net income of $110,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
Changes in Current Operating Assets and Liabilities—Indirect Method Covington Corporation's comparative balance sheet for current assets...
Changes in Current Operating Assets and Liabilities—Indirect Method Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $16,700 $21,100 Inventory 57,600 50,500 Accounts payable 17,100 21,900 Dividends payable 26,000 28,000 Adjust net income of $129,100 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $
Changes in Current Operating Assets and Liabilities—Indirect Method Blue Circle Corporation's comparative balance sheet for current...
Changes in Current Operating Assets and Liabilities—Indirect Method Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $28,300 $24,000 Inventory 45,200 50,800 Accounts payable 21,900 25,800 Dividends payable 26,000 28,000 Adjust net income of $127,300 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
Changes in Current Operating Assets and Liabilities—Indirect Method Victor Corporation's comparative balance sheet for current assets...
Changes in Current Operating Assets and Liabilities—Indirect Method Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $15,700 $14,400 Inventory 52,400 53,100 Accounts payable 11,100 9,600 Dividends payable 25,000 27,000 Adjust net income of $124,600 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT