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
Case 1. | |
Net income | 527000 |
Patent amortization | 42000 |
Increase in Accounts Receivable | -16000 |
Increase in Acoounts Payable | 32000 |
Net cash flow from (used in) operating activities | 585000 |
Case 2. | |
Net income | 120000 |
Depreciation Expense | 85000 |
Decrease in inventory | 27000 |
Amortization of bond premium | 1200 |
Net cash flow from (used in) operating activities | 233200 |
Case 3. | |
Net income | 640000 |
Decrease in taxes payable | -80000 |
Unrealized gain | -12000 |
Decrease in prepaid insurance | 6500 |
Net cash flow from (used in) operating activities | 554500 |
Case 4. | |
Net income | 142000 |
Increase in wages payable | 56000 |
Decrease in Interest receivable | 18000 |
Decrease in dividends payable | -6000 |
Net cash flow from (used in) operating activities | 210000 |
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