Describe the direct method of reporting cash flows from operating activities
Describe the direct method of reporting cash flows from operating activities
Homework Answers
Answer:
- In direct method of Cash flows from operating activities Consists directly Cash receipts from major classes such as sales to customers and itemizes cash payments such as merchandise purchases, Taxes, interest and other operating expenses.
- Cash paid operating activities is subtracted from cash received from operating activities in order to calculate cash from operations.
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Describe the direct method of reporting cash flows from
operating activities
Cash flows from operating activities-direct method Instructions Amount Descriptions Statement of Cash Flows-Operating Activities Instructions Sales...
Cash flows from operating activities-direct method Instructions Amount Descriptions Statement of Cash Flows-Operating Activities Instructions Sales $445,100.00 2 Cost of merchandise sold 157,900.00 5 Gross profit $287,200.00 Operating expenses: Depreciation expense $38,300.00 116,190.00 Other operating expenses Total operating expenses 154,490.00 Income before income tax $132,710.00 Income tax expense 40,590.00 $92,120.00 10 Net income Instructions Amount Descriptions Statement of Cash Flows-Operating Activities Instructions The balances of selected accounts at the beginning and the end of the current year are as follows:...
Which of the following methods of reporting cash flows from operating activities adjusts net income for...
Which of the following methods of reporting cash flows from operating activities adjusts net income for revenues and expenses not involving the receipt or payment of cash? Indirect method Direct method Purchase method Reciprocal method
E12-7 Reporting Cash Flows from Operating Activities (Indirect Method) LO12-2 The following information pertains to Peak...
E12-7 Reporting Cash Flows from Operating Activities (Indirect Method) LO12-2 The following information pertains to Peak Heights Company: E12-7 Reporting Cash Flows from Operating Activities (Indirect Method) LO12-2 The following information pertains to Peak Heights Company: Income Statement for Current Year Sales $ 86,100 Expenses Cost of goods sold $ 51,775 Depreciation expense 7,800 Salaries expense 11,900 71,475 Net income $ 14,625 Partial Balance Sheet Current year Prior year Accounts receivable $ 10,100 $ 12,100 Inventory 12,200...
Cash Flows from Operating Activities–Direct Method The income statement for Rhino Company for the current year...
Cash Flows from Operating Activities–Direct Method The income statement for Rhino Company for the current year ended June 30 and balances of selected accounts at the beginning and the end of the year are as follows: $445,500 (154,000) $291,500 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other operating expenses Total operating expenses $38,500 115,280 Income before income tax (153,780) $137,720 (39,600) $98,120 Income tax expense Net income End of Year Beginning of Year Accounts receivable (net)...
Cash flows from operating activities for both the indirect and direct methods are presented for Electronic...
Cash flows from operating activities for both the indirect and direct methods are presented for Electronic Transformations. Cash Flows from Operating Activities (Indirect method) Net income $ 35,600 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense 8,600 Increase in accounts receivable (12,600 ) Increase in accounts payable 7,600 Increase in income tax payable 5,600 Net cash flows from operating activities $ 44,800 Cash Flows from Operating Activities (Direct method) Cash received from customers $...
prepare the cash flows from operating activities section using the direct method for blocker transport
prepare the cash flows from operating activities section using the
direct method for blocker transport
Cash Flows from Operating Activities-Direct Method The income statement for Rhino Company for the current year...
Cash Flows from Operating Activities-Direct Method The income statement for Rhino Company for the current year ended June 30 and balances of selected accounts at the beginning and the end of the year are as follows: $445,500 154,000 $291,500 Sales Cost of merchandise sold Gross profit Operating expenses: Depreciation expense Other operating expenses Total operating expenses Income before income tax Income tax expense $38,500 153,780 $137.720 39,600 Net Income $98,120 End of Year Beginning of Year Accounts receivable (net) $36,300...
M12-12 Computing Cash Flows from Operating Activities (Direct Method) [LO 12-6] The independent cases are listed...
M12-12 Computing Cash Flows from Operating Activities (Direct Method) [LO 12-6] The independent cases are listed below that includes all items relevant to operating activities: Compute cash flows from operating activities using the direct method. (List cash outflows as negative amounts.)
Chew Corporation prepares its statement of cash flows using the indirect method of reporting operating activities....
Chew Corporation prepares its statement of cash flows using the indirect method of reporting operating activities. Net income for the 2021 fiscal year was $1,258.000. Depreciation expense of $148,000 was included with operating expenses in the income statement The following information describes the changes in current assets and liabilities other than cash: Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in salaries payable Increase in income taxes payable $ 160,000 116,000 70,000 38,000 52,000 Required: Prepare...
when the direct method is used to determine the cash flows from operating activities, which of...
when the direct method is used to determine the cash flows from operating activities, which of the folloiwng adjusment must be made to interst expense to determine total interest payments?
Cash flows from operating activities-direct method Instructions Amount Descriptions Statement of Cash Flows-Operating Activities Instructions Sales $445,100.00 2 Cost of merchandise sold 157,900.00 5 Gross profit $287,200.00 Operating expenses: Depreciation expense $38,300.00 116,190.00 Other operating expenses Total operating expenses 154,490.00 Income before income tax $132,710.00 Income tax expense 40,590.00 $92,120.00 10 Net income Instructions Amount Descriptions Statement of Cash Flows-Operating Activities Instructions The balances of selected accounts at the beginning and the end of the current year are as follows:...
Which of the following methods of reporting cash flows from operating activities adjusts net income for revenues and expenses not involving the receipt or payment of cash? Indirect method Direct method Purchase method Reciprocal method
Cash Flows from Operating Activities–Direct Method The income statement for Rhino Company for the current year ended June 30 and balances of selected accounts at the beginning and the end of the year are as follows: $445,500 (154,000) $291,500 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other operating expenses Total operating expenses $38,500 115,280 Income before income tax (153,780) $137,720 (39,600) $98,120 Income tax expense Net income End of Year Beginning of Year Accounts receivable (net)...
prepare the cash flows from operating activities section using the
direct method for blocker transport
Cash Flows from Operating Activities-Direct Method The income statement for Rhino Company for the current year ended June 30 and balances of selected accounts at the beginning and the end of the year are as follows: $445,500 154,000 $291,500 Sales Cost of merchandise sold Gross profit Operating expenses: Depreciation expense Other operating expenses Total operating expenses Income before income tax Income tax expense $38,500 153,780 $137.720 39,600 Net Income $98,120 End of Year Beginning of Year Accounts receivable (net) $36,300...
M12-12 Computing Cash Flows from Operating Activities (Direct Method) [LO 12-6] The independent cases are listed below that includes all items relevant to operating activities: Compute cash flows from operating activities using the direct method. (List cash outflows as negative amounts.)
Chew Corporation prepares its statement of cash flows using the indirect method of reporting operating activities. Net income for the 2021 fiscal year was $1,258.000. Depreciation expense of $148,000 was included with operating expenses in the income statement The following information describes the changes in current assets and liabilities other than cash: Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in salaries payable Increase in income taxes payable $ 160,000 116,000 70,000 38,000 52,000 Required: Prepare...
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