Question

Help! Short or no explanations! Answer right and you will have postivle feedback! Answer all 4, because accouding to the policy in a single post I can ask 4 questions! Thanks

E connect TACCOUNTING Financial and Managerial Ac WLAC ACC 2 Sec 17366) Exam 1 < Question 1 (of 33) 1. A company's income statement showed the following: net income, $138,000; depreciation expense, $37,000; and gain on sale of plant assets, $11,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $10,800; merchandise inventory increased $25,000: prepaid expenses increased $7,600; accounts payable increased $4,800. Calculate the net cash provided or used by operating activities $157,000 $152,200 $150,200 O $178,200 $147,000

Answer 1

Answer 1:

Your required answer is option E i.e. $147,000

Explanation:

$138,000 $37,000 ($11,000) Net Income Add: Non cash item - Depreciation Less: Non operating item - Gain on sale of Plant Assets Working Capital Adjustments: Accounts Recivable Decreased Merchandise Inventory Increased Prepaid Expenses Increased Accounts Payable Increased Net Cash provided or used by operating Activities $10,800 ($25,000) ($7,600) $4,800 $147,000

Answer 2:

Your required answer is option E i.e. $46,400

Explanation:

The cost and depreciation amount is not relevant for cash flow statement. The amount on which assets is sold is recorded in investing activities.

Answer 3:

Your required answer is option C i.e. Cash inflows and cash outflows for an accounting period

Explanation:

Cash flow statement is prepared to know the Cash inflows and cash outflows for an accounting period

Answer 4:

Your required answer is option C i.e. Investing Activity

Explanation:

Purchase of assets is shown under cash flow from investing activities as a negative balance (outflow)

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