Question

Apple Heating Co. reported $27,000 of net income. The company uses the visual inspection method to...

Apple Heating Co. reported $27,000 of net income. The company uses the visual inspection method to complete the statement of cash flows. Additional information is listed below:

Account Change
Prepaid assets $400 increase
Inventory 700 decrease
Accounts payable 250 decrease
Dividends payable 50 increase


The net cash provided by operating activities was

$27,150

$26,850

$27,050

$26,900

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2

(C) $27,050

Explanation:

Let us prepare the Cash flow from Operating Activities Section of the Cash Flow Statement

Net Income $ 27,000
Adjustment for changes in Working Capital:
Increase in Prepaid Assets ($ 400)
Decrease in Inventory $ 700
Decrease in Accounts Payable ($ 250)
Net Changes in Working Capital $ 50
Net Cash flow from Operating Activities $ 27,050

Dividend payable does not appear in cash flow statement until it is paid. Dividend paid is classified under cash flow from financing activities in a cash flow statement.

answered by: anonymous
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $244,900. Depreciation recorded on equipment and a building amounted to $73,200 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $64,900 $68,790 Accounts receivable (net) 82,290 84,890 Inventories 162,250 146,250 Prepaid expenses 9,020 9,700 Accounts payable (merchandise creditors) 72,490 76,770...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $116,500. Depreciation recorded on store equipment for the year amounted to $19,200. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $47,530 $43,730 Accounts receivable (net) 34,080 32,320 Merchandise inventory 46,530 49,200 Prepaid expenses 5,230 4,150 Accounts payable (merchandise creditors) 44,540 41,370 Wages...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $137,900. Depreciation recorded on store equipment for the year amounted to $22,800. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $53,640 $48,810 Accounts receivable (net) 38,460 36,070 Merchandise inventory 52,510 54,910 Prepaid expenses 5,900 4,640 Accounts payable (merchandise creditors) 50,260 46,170 Wages...
The net income reported on the income statement for the current year was $73,600. Depreciation recorded...
The net income reported on the income statement for the current year was $73,600. Depreciation recorded on store equipment for the year amounted to $27,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $23,500 $18,700 Accounts receivable (net) 56,000 48,000 Merchandise inventory 35,500 40,000 Prepaid expenses 4,750 7,000 Accounts payable (merchandise creditors) 21,800 16,800 Wages payable 4,900 5,800 Required: A. Prepare...
Adjustments to Net Income with the Indirect Method Assume that a company uses the indirect method...
Adjustments to Net Income with the Indirect Method Assume that a company uses the indirect method to prepare the Operating Activities section of the statement of cash flows. For each of the following items, indicate whether it would be Added to net income, Deducted from net income, or Not Reported in this section of the statement under the indirect method. The options for each are added, deducted or not reported 1. Depreciation expense 2. Gain on sale of used delivery...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $120,600. Depreciation recorded on store equipment for the year amounted to $19,900. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $49,330 $44,890 Accounts receivable (net) 35,370 33,170 Inventories 48,290 50,500 Prepaid expenses 5,430 4,260 Accounts payable (merchandise creditors) 46,220 42,470 Wages payable...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $135,500. Depreciation recorded on store equipment for the year amounted to $22,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $54,060 $49,190 Accounts receivable (net) 38,760 36,350 Merchandise inventory 52,920 55,340 Prepaid expenses 5,950 4,670 Accounts payable (merchandise creditors) 50,650 46,530 Wages...
The accounting records of Hampton Company provided the data below ($ in 000s). Net income $...
The accounting records of Hampton Company provided the data below ($ in 000s). Net income $ 19,300 Depreciation expense 8,000 Increase in accounts receivable 4,200 Decrease in inventory 5,700 Decrease in prepaid insurance 1,300 Decrease in salaries payable 2,900 Increase in interest payable 700 Required: Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)   
A merchandising company began in 2019 with​ $10,000 in cash and reported net income of​ $6,700...
A merchandising company began in 2019 with​ $10,000 in cash and reported net income of​ $6,700 on its 2019 income statement. During the year a loss of​ $250 was reported on the cash sale of a piece of equipment with a book value of​ $1,000. A new piece of equipment was purchased at a cost of​ $8,500 to replace the equipment that was sold. The company paid​ $1,500 from its available cash balance to purchase the equipment and took out...
JSW Corp. reported net income on the income statement for the current year of $59,000. Depreciation...
JSW Corp. reported net income on the income statement for the current year of $59,000. Depreciation recorded on fixed assets for the year was $24,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below. Prepare the cash flows from operating activities section of a statement of cash flows using the indirect method. End Beginning Cash $65,000 $  70,000 Accounts receivable (net) 70,000 57,000 Inventories 86,000 102,000 Prepaid expenses 4,000 4,500...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT