WileyPLUS Problem 5-10 a (Indirect Method)
The income statement of Tamache Corporation is shown below:
TAMACHE CORPORATION Statement of Income Year Ended December 31, 2020 |
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Sales revenue | $7,216,000 | |||
Cost of goods sold | 4,400,000 | |||
Gross profit | 2,816,000 | |||
Operating expenses | $1,469,600 | |||
Depreciation expense | 70,400 | 1,540,000 | ||
Profit before income tax | $1,276,000 | |||
Income tax expense | 446,600 | |||
Net income | $829,400 |
Additional information:
1. | Accounts receivable decreased $264,000 during the year. | |
2. | Prepaid expenses increased $176,000 during the year. | |
3. | Inventory decreased $352,000 during the year. | |
4. | Accounts payable decreased $396,000 during the year. | |
5. | Wages payable decreased $132,000 during the year. | |
6. | Operating expenses included wages of $968,000. |
(a)
Prepare the operating activities section of the cash flow statement
for the year ended December 31, 2020 for Tamache Corporation, using
the indirect method. (Show amounts that decrease cash
flow with either a - sign e.g. -15,000 or in parenthesis e.g.
(15,000).)
TAMACHE CORPORATION |
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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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Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Decrease in Prepaid Expenses Decrease in Wages Payable Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Increase in Prepaid Expenses Increase in Wages Payable Loss on Disposal of Equipment Net Income |
$ | |
Adjustments to reconcile profit to |
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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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Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Decrease in Prepaid Expenses Decrease in Wages Payable Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Increase in Prepaid Expenses Increase in Wages Payable Loss on Disposal of Equipment Net Income |
$ | |
Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Decrease in Prepaid Expenses Decrease in Wages Payable Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Increase in Prepaid Expenses Increase in Wages Payable Loss on Disposal of Equipment Net Income |
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Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Decrease in Prepaid Expenses Decrease in Wages Payable Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Increase in Prepaid Expenses Increase in Wages Payable Loss on Disposal of Equipment Net Income |
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Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Decrease in Prepaid Expenses Decrease in Wages Payable Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Increase in Prepaid Expenses Increase in Wages Payable Loss on Disposal of Equipment Net Income |
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Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Decrease in Prepaid Expenses Decrease in Wages Payable Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Increase in Prepaid Expenses Increase in Wages Payable Loss on Disposal of Equipment Net Income |
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Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Decrease in Prepaid Expenses Decrease in Wages Payable Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Increase in Prepaid Expenses Increase in Wages Payable Loss on Disposal of Equipment Net Income |
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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 |
$ |
WileyPLUS Problem 5-10 a (Indirect Method) The income statement of Tamache Corporation is shown below: TAMACHE CORPOR...
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