Question

Wiley PLUS Problem 5-10 a (Indirect Method) The income statement of Tamache Corporation is shown below: TAMACHE CORPORATION S

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution

TAMACHE CORPORATION
Statement of Cash Flows (Partial)
For the Year ended December 31st 2020
A. Cash Flows from Operating Activity
Net Income $        904,800.00
Adjustments to reconcile net income to net cash flows from Operating Activities
Income statement items not affecting cash
Depreciation expense $           76,800.00
Decrease in Accounts Receivable $        288,000.00
Increase in Prepaid Expenses $      (192,000.00)
Decrease in Inventory $        384,000.00
Decrease in Accounts Payable $      (432,000.00)
Decrease in Wages Payable $      (144,000.00)
$        (19,200.00)
Net cash flow from Operating activities $        885,600.00

General notes for cash flow
Cash is increased when Current liability increase or Current asset Decrease.
Cash is Decreased when Current liability Decrease or Current asset Increase.
Depreciation or loss on sale of any asset is a non cash expense hence it will be added to net income to get operating cash
Profit on sale of asset or investment is a non cash profit and hence will be deducted from operating income.

Add a comment
Know the answer?
Add Answer to:
Wiley PLUS Problem 5-10 a (Indirect Method) The income statement of Tamache Corporation is shown below:...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • WileyPLUS Problem 5-10 a (Indirect Method) The income statement of Tamache Corporation is shown below: TAMACHE...

    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 Sales revenue $8,856,000 Cost of goods sold 5,400,000 Gross profit 3,456,000 Operating expenses $1,803,600 Depreciation expense 86,400 1,890,000 Profit before income tax $1,566,000 Income tax expense 548,100 Net income $1,017,900 Additional information: 1. Accounts receivable decreased $324,000 during the year. 2. Prepaid expenses increased $216,000 during the year. 3. Inventory decreased $432,000 during the year....

  • The income statement of Tamache Corporation is shown below: TAMACHE CORPORATION Statement of Income Year Ended...

    The income statement of Tamache Corporation is shown below: TAMACHE CORPORATION Statement of Income Year Ended December 31, 2020 Sales revenue $8,364,000 Cost of goods sold 5,100,000 Gross profit 3,264,000 Operating expenses $1,703,400 Depreciation expense 81,600 1,785,000 Profit before income tax $1,479,000 Income tax expense 517,650 Net income $961,350 Additional information: 1. Accounts receivable decreased $306,000 during the year. 2. Prepaid expenses increased $204,000 during the year. 3. Inventory decreased $408,000 during the year. 4. Accounts payable decreased $459,000 during...

  • WileyPLUS Problem 5-10 a (Indirect Method) The income statement of Tamache Corporation is shown below: TAMACHE CORPOR...

    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 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....

  • The income statement of Kingbird Company is shown below. $6,770,000 KINGBIRD COMPANY INCOME STATEMENT FOR THE...

    The income statement of Kingbird Company is shown below. $6,770,000 KINGBIRD COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue Cost of goods sold Beginning inventory $1,750,000 Purchases 4,830,000 Goods available for sale 6,580,000 Ending inventory 1,450,000 Cost of goods sold Gross profit Operating expenses Selling expenses 440,000 Administrative expenses 770,000 Net income 5,130,000 1,640,000 1,210,000 $430,000 Additional information: 1. Accounts receivable decreased $290,000 during the year. 2. Prepaid expenses increased $170,000 during the year. 3. Accounts...

  • Exercise 23-3 The income statement of Nash Company is shown below. NASH COMPANY INCOME STATEMENT FOR...

    Exercise 23-3 The income statement of Nash Company is shown below. NASH COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,980,000 Cost of goods sold    Beginning inventory $1,850,000    Purchases 4,580,000    Goods available for sale 6,430,000    Ending inventory 1,570,000    Cost of goods sold 4,860,000 Gross profit 2,120,000 Operating expenses    Selling expenses 410,000    Administrative expenses 760,000 1,170,000 Net income $950,000 Additional information: 1. Accounts receivable decreased $300,000 during the year. 2. Prepaid expenses increased $170,000 during the year....

  • The income statement of Bridgeport Corporation is presented here. BRIDGEPORT CORPORATION Income Statement Year Ended November...

    The income statement of Bridgeport Corporation is presented here. BRIDGEPORT CORPORATION Income Statement Year Ended November 30, 2018 Sales $8,100,000 Cost of goods sold 4,950,000 Gross profit 3,150,000 Salaries expense 863,000 Operating expenses 222,000 Depreciation expense 90,000 Income before income tax 1,975,000 Income tax expense 245.000 Net income $1,730,000 Additional information: 1. Accounts receivable increased $400,000 during the year, and inventory decreased $540,000. 2. Prepaid expenses, which relate to administrative expenses, increased $200,000 during the year. 3. Accounts payable to...

  • The income statement of Whitlock Company is presented here. WHITLOCK COMPANY Income Statement For the Year...

    The income statement of Whitlock Company is presented here. WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2020 Sales revenue $7,564,900 Cost of goods sold Beginning inventory $1,836,300 Purchases 4,423,500 Goods available for sale 6,259,800 Ending inventory 1,305,000 Total cost of goods sold 4,954,800 Gross profit 2,610,100 Operating expenses 1,130,200 $1,479,900 Net income Additional information: 1. Accounts receivable increased $192,500 during the year, and inventory decreased $531,300. 2. Prepaid expenses increased $175,100 during the year. 3. Accounts payable...

  • 7. Prepare the operating section of the statement of cash flows under the Indirect method using...

    7. Prepare the operating section of the statement of cash flows under the Indirect method using the income statement below. During the year, the accounts payable also increased by $1,200 and accounts receivable decreased by $2,200 $182,100 90.400 $ 91,700 ABC Corporation Income Statement For the Year Ended December 31, 2015 Sales revenue Cost of merchandise sold Gross profit Operating expenses: Salaries expense $41,300 Advertising expense 1.500 Depreciation expense Amortization expense Total operating expenses Income from operations Other income and...

  • The income statement of Smith Company is shown below. Sales .... SMITH COMPANY INCOME STATEMENT FOR...

    The income statement of Smith Company is shown below. Sales .... SMITH COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 ..............$755,000 Cost of goods sold. ... ..............543,000 Gross profit...... .............212,000 Operating expenses Selling expenses ....... $52,000 Administrative expenses ............... ........89,000..........141,000 Income before tax ................ ......................71,000 Income Tax Expense .............. .....20,000 Net income ......... $ 51,000 Additional information: 1. Accounts receivable decreased by $63,000 during the year. 2. Inventory increased by $38,000 during the year. 3. Prepaid expenses increased...

  • Problem 17-OJA (Video) The income statement of Whitlock Company is presented here. WHITLOCK COMPANY $7.477.800 For...

    Problem 17-OJA (Video) The income statement of Whitlock Company is presented here. WHITLOCK COMPANY $7.477.800 For the Year Ended November 30, 2020 Sales revenue Cost of goods sold Beginning inventory $1,888,900 Purchases 4,380,300 Goods available for sale 6,269,200 Ending inventory 1,326,600 Total cost of goods sold Gross profit Operating expenses Net income 4,942,600 2,535,200 1,141,700 $1,393,500 Additional information 1. Accounts receivable increased $196,300 during the year, and inventory decreased 5562.300 2. Prepaid expenses increased $168,900 during the year. 3. Accounts...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT