Question 1
Gutierrez Company reported net income of $190,400 for 2020.
Gutierrez also reported depreciation expense of $41,900 and a loss
of $4,600 on the disposal of plant assets. The comparative balance
sheet shows a decrease in accounts receivable of $14,400 for the
year, a $16,400 increase in accounts payable, and a $4,100 decrease
in prepaid expenses.
Prepare the operating activities section of the statement of cash
flows for 2020. Use the indirect method. (Show amounts
that decrease cash flow with either a - sign e.g. -15,000 or in
parenthesis e.g. (15,000).)
GUTIERREZ
COMPANY Partial Statement of Cash Flows choose the accounting period December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020 |
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select an opening section name
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash |
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select an item
Net Income Depreciation Expense Increase in Accounts Receivable Decrease in Prepaid Expenses Increase in Prepaid Expenses Loss on Disposal of Plant Assets Increase in Accounts Payable Decrease in Accounts Payable Decrease in Accounts Receivable |
$enter a dollar amount | |
Adjustments to reconcile net income to |
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select a subsection name
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash |
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select an item
Increase in Accounts Payable Increase in Accounts Receivable Decrease in Accounts Receivable Decrease in Accounts Payable Decrease in Prepaid Expenses Increase in Prepaid Expenses Loss on Disposal of Plant Assets Net Income Depreciation Expense |
$enter a dollar amount | |
select an item
Increase in Accounts Payable Increase in Prepaid Expenses Net Income Depreciation Expense Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Prepaid Expenses Increase in Accounts Receivable Loss on Disposal of Plant Assets |
enter a dollar amount | |
select an item
Increase in Accounts Receivable Decrease in Accounts Receivable Depreciation Expense Decrease in Accounts Payable Increase in Prepaid Expenses Decrease in Prepaid Expenses Increase in Accounts Payable Net Income Loss on Disposal of Plant Assets |
enter a dollar amount | |
select an item
Increase in Accounts Payable Loss on Disposal of Plant Assets Decrease in Accounts Payable Increase in Accounts Receivable Decrease in Accounts Receivable Increase in Prepaid Expenses Decrease in Prepaid Expenses Net Income Depreciation Expense |
enter a dollar amount | |
select an item
Depreciation Expense Decrease in Accounts Payable Increase in Prepaid Expenses Increase in Accounts Receivable Decrease in Accounts Receivable Decrease in Prepaid Expenses Loss on Disposal of Plant Assets Net Income Increase in Accounts Payable |
enter a dollar amount | |
enter a subtotal of the adjustments | ||
select a closing section name
Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash |
$enter a total amount for the section |
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Solution
GUTIERREZ COMPANY | ||
Partial Statement of Cash Flows | ||
For the Year Ended December 31, 2020 | ||
A. Cash Flows from Operating Activity | ||
Net Income | $ 190,400.00 | |
Adjustment to reconcile net income to | ||
Net cash from operating activities | ||
Depreciation expense | $ 41,900.00 | |
Loss on Disposal of Plant Assets | $ 4,600.00 | |
Decrease in Accounts receivables | $ 14,400.00 | |
Increase in accounts payable | $ 16,400.00 | |
Decrease in prepaid expenses. | $ 4,100.00 | |
$ 81,400.00 | ||
Net cash provided by Operating activities | $ 271,800.00 |
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