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Using the concepts from above, determine the cash flow from operating activities using the indirect method....

Using the concepts from above, determine the cash flow from operating activities using the indirect method.

The following information is available from current period financial statements:

Net Income                 $527,000         Increase in A/Receivable            $16,000

Patent Amortization       42,000         Increase in A/Payable             32,000

The following information is available from current period financial statements:

Net Income                 $120,000         Decrease in Inventory             $27,000

Depreciation Expense     82,000         Amortization of Premium

                                                                                         on Bond Payable                  1,200     

The following information is available from current period financial statements:

Net Income                 $640,000         Decrease in Taxes Payable            $80,000

Unrealized gain on                              Decrease in Prepaid                    

      Trading Securities      12,000               Insurance                             6,500

The following information is available from current period financial statements:

Net Income                 $142,000         Increase in wages payable            $56,000

Decrease in interest                            Decrease in Dividends

       payable                      6,000             receivable                              18,000

Business   Accounting   
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Answer #1
STATEMENT OF CASH FLOWS
Cash flow from operating activities:
Net income 527000
Adjustments to reconcile net income with net cash from operating activities:
Patent amortization 42000
Increase in accounts receivable -16000
Increase in accounts payable 32000 58000
Net cash from operating activities 585000
STATEMENT OF CASH FLOWS
Cash flow from operating activities:
Net income 120000
Adjustments to reconcile net income with net cash from operating activities:
Depreciation expense 82000
Amortization of premium on bonds payable 1200
Decrease in inventory 27000 110200
Net cash from operating activities 230200
STATEMENT OF CASH FLOWS
Cash flow from operating activities:
Net income 640000
Adjustments to reconcile net income with net cash from operating activities:
Unrealized gain on trading securities -12000
Decrease in taxes payable -80000
Decrease in prepaid insurance 6500 -85500
Net cash from operating activities 554500
STATEMENT OF CASH FLOWS
Cash flow from operating activities:
Net income 142000
Adjustments to reconcile net income with net cash from operating activities:
Unrealized gain on trading securities -12000
Decrease in taxes payable -80000
Decrease in prepaid insurance 6500 -85500
Net cash from operating activities 56500
STATEMENT OF CASH FLOWS
Cash flow from operating activities:
Net income 142000
Adjustments to reconcile net income with net cash from operating activities:
Increase in wages payable 56000
Decrease in interest payable -6000 50000
Net cash from operating activities 192000
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