Homework Answers
| Cash flow from operating activities: | |
| Net income | $500000 |
| Adjustment for Non cash item | |
| Depreciation | 54000 |
| Gain on sale of equipment | (21000) |
| Change in operating current assets and current liabilities | |
| Increase in accounts payable | 45000 |
| Increase in prepaid insurance | (33000) |
| Decrease in accounts receivable | 12000 |
| Decrease in accrued liabilities | (24000) |
| Decrease in inventory | 45000 |
| Net cash flow from operating activities | $578000 |
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Problem #1 - Statement of Cash Flows - Operating Activities (15 points) 5 Points) follow 4...
1.) During 2015, Orton Company earned net income of $500,000, which included depreciation expense of $54,000...
1.) During 2015, Orton Company earned net income of $500,000, which included depreciation expense of $54,000 and a gain on the sale of equipment of $21,000. In addition, the company experienced the following changes in the account balances listed below: Increases -------------------------- Decreases Accounts Payable $45,000 ------ Accounts Receivable $12,000 Prepaid Insurance $33,000 ------ Accrued Liabilities $24,000 N/A ------------------------------------Inventory $45,000 Prepare the Net Cash Flow from Operating Activities: (Good form - Just don't show numbers. If you just show numbers,...
Prepare the operating activities section of the statement of cash flows for 2016 using the indirect method.
Partial balance sheets and additional information are listed below for sowell companySowell CompanyPartial Balance sheetsas on December 31Assets20162015Cash$40,000$20,000Accounts receivable70,00085,000Inventory40,00035,000LiabilitiesAccounts payable54,00062,000Additional information for 2016Net income$88,000Depreciation expense$19,000Prepare the operating activities section of statement of cash flow for 2016 using the indirect method
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:...
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...
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)...
Using the information presented in Problem 13.4A, prepare a partial statement of cash flows for the...
Using the information presented in Problem 13.4A, prepare a partial statement of cash flows for the current year, showing the computation of net cash flows from operating activities by the indirect method. Explain why the decline in accounts receivable over the year was added to income in computing the cash flows from operating activities. sh Additional Information 1. Dividend revenue is recognized on the cash basis. All other income statement amounts recognized on the accrual basis. 2. Operating expenses include...
Cash Flows from Operating Activities-Indirect Method Selected data (in thousands) derived from the income statement and...
Cash Flows from Operating Activities-Indirect Method Selected data (in thousands) derived from the income statement and balance sheet of National Beverage Corp. for a recent year are as follows: Income statement data: Net income $49,335 Gain on disposal of property 1,170 Depreciation expense 11,615 Other items involving noncash expenses 1,400 Balance sheet data: Increase in accounts receivable 1,750 Decrease in inventory 1,025 Increase in prepaid expenses 560 Decrease in accounts payable 695 Decrease in accrued and other current liabilities 955...
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 $138,100. 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 $54,000 $49,680 Accounts receivable (net) 38,720 36,710 Merchandise inventory 52,870 55,890 Prepaid expenses 5,940 4,720 Accounts payable (merchandise creditors) 50,600 47,000 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 $216,000. Depreciation recorded on equipment and a building amounted to $64,600 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 $54,000 68,470 135,000 7,510 60,320 8,690 Beginning of Year Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Salaries payable a. Prepare...
The income statement and the cash flows from the operating activities section of the statement of...
The income statement and the cash flows from the operating activities section of the statement of cash flows are provided below for Syntric Company. The merchandise inventory account balance neither increased nor decreased during the reporting period. Syntric had no liability for insurance, deferred income taxes, or interest at any time during the period. $ 273.2 (179.8) 93.4 (65.7) SYNTRIC COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales Cost of goods sold Gross margin...
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:...
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...
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)...
Using the information presented in Problem 13.4A, prepare a partial statement of cash flows for the current year, showing the computation of net cash flows from operating activities by the indirect method. Explain why the decline in accounts receivable over the year was added to income in computing the cash flows from operating activities. sh Additional Information 1. Dividend revenue is recognized on the cash basis. All other income statement amounts recognized on the accrual basis. 2. Operating expenses include...
Cash Flows from Operating Activities-Indirect Method Selected data (in thousands) derived from the income statement and balance sheet of National Beverage Corp. for a recent year are as follows: Income statement data: Net income $49,335 Gain on disposal of property 1,170 Depreciation expense 11,615 Other items involving noncash expenses 1,400 Balance sheet data: Increase in accounts receivable 1,750 Decrease in inventory 1,025 Increase in prepaid expenses 560 Decrease in accounts payable 695 Decrease in accrued and other current liabilities 955...
Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $216,000. Depreciation recorded on equipment and a building amounted to $64,600 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 $54,000 68,470 135,000 7,510 60,320 8,690 Beginning of Year Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Salaries payable a. Prepare...
The income statement and the cash flows from the operating activities section of the statement of cash flows are provided below for Syntric Company. The merchandise inventory account balance neither increased nor decreased during the reporting period. Syntric had no liability for insurance, deferred income taxes, or interest at any time during the period. $ 273.2 (179.8) 93.4 (65.7) SYNTRIC COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales Cost of goods sold Gross margin...
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