The direct method separately lists operating cash receipts, such as cash received from customers. True or...
true or false? The direct method of preparing the operating activities section of the statement of cash flows reports major classes of cash receipts and cash payments related to the day-to-day operations of the business. True False
answers for the red x's $880,000 40,000 Cash receipts: Cash received from customers Cash received from issuing common stock Cash payments: Cash paid for operating expenses Cash paid for land Cash paid as dividends The cash balance as of June 1, 2017, was $50,000. 758,000 150,000 10,000 Prepare a statement of cash flows for Paradise Travel Service for the year ended May 31, 2018. Use the minus sign to indicate cash outflows, cash payments and decreases in cash Paradise Travel...
Cash Received from Customers—Direct Method Sales reported on the income statement were $541,000. The accounts receivable balance decreased $45,000 over the year. Determine the amount of cash received from customers.
On a statement of cash flows prepared by using the direct method, cash receipts from interest and dividends are classified as: O A. financing activities O B. investing activities O C. operating activities OD. noncash activities.
Cash received from customers may result in a current liability True O False
12. Which of the following statements about the direct method for presenting cash from operating activities is most appropriate? The direct method: A. shows the reasons for differences between net income and operating cash flows. B. provides information on the specific sources of operating cash receipts and payments. C. shows the impact of accruals.
Cash paid for interest on a loan is classified as a cash flow from financing activities in a statement of cash flows. Select one: True False Two different methods of determining and presenting the net cash flows from operating activities are the indirect method and the reconciliation method. Select one: True False The operating activities section of the statement of cash flows shows a reconciliation of net income to the net cash provided by operating activities amount under the direct...
Kelly Company had cash receipts from customers in 2014 of $150,220. Cash payments for operating expenses were $97,860. Kelly has determined that at January 1, accounts receivable was $13,810, and prepaid expenses were $18,340. At December 31, accounts receivable was $18,980, and prepaid expenses were $24,990. Compute (a) service revenue and (b) operating expenses.
In 2020, Sheffield Corp. had cash receipts from customers of $152,000 and cash payments for operating expenses of $90,000. At January 1, 2020, accounts receivable were $11,000 and total prepaid expenses were $16,300. At December 31, 2020, accounts receivable were $16,700 and total prepaid expenses were $25,400. Calculate the following: (a) Total Service Revenue $enter a dollar amount (b) Total Operating Expenses $enter a dollar amount
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)...