Homework Answers
Under statement of cash flow there is three activities
1) Cash flow from operating activities
2) Cash flow from investing activities
3) Cash flow from financing activities
Cash flow from operating activities includes Depreciation expense (it is non cash expense so it would be added under adjustments) and change in Current assets and liabilities
Under indirect method, If current assets decrease and current liabilities increase it would be added and when current assets increase and current liabilities decrease it would be deducted
So answer is d) Depreciation expense
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Which of the following would be added to net income using the indirect method? OA. A...
1. Which of the following would be added to net income using the indirect method? a....
1. Which of the following would be added to net income using the indirect method? a. An increase in prepaid expenses. b. Depreciation expense. c. A decrease in accounts payable. d. An increase in accounts receivable. 2. T/F Using the indirect method, an increase in accounts receivable during a period is deducted from net income in calculating cash provided by operations. 3. T/F A loss on sale of equipment is added to net income in determining cash provided by operations...
Using the indirect method, which of the following would be added to net income? O depreciation...
Using the indirect method, which of the following would be added to net income? O depreciation expense O increase in prepaid expenses decrease in accounts payable O increase in accounts receivable A company just starting its business made the following four inventory purchases in June Date Jun 1 Jun 10 Jun 15 Jun 28 Number of Units 150 200 200 150 Total Cost $480 660 680 525 On June 25, the company made its first sale when a local customer...
Which of the following is Deducted from Net Income when the indirect method is used to...
Which of the following is Deducted from Net Income when the indirect method is used to compute cash flows from operations? Select one: a. Increase in income taxes payable O b. Depreciation expense c. Decrease in accounts payable d. Decrease in prepaid expenses е Next page
Indicate whether each of the following would be added to or deducted from net income in...
Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method: a. Decrease in inventory b. Increase in accounts receivable c. Increase in accounts payable d. Loss on retirement of long-term debt e. Depreciation of fixed assets f. Decrease in notes receivable due in 60 days from customers g. Increase in salaries payable h. Decrease in prepaid expenses i. Amortization of patent j. Increase...
iuple Choice Question 125 Using the indirect method, which of the following adjustments to convert net...
iuple Choice Question 125 Using the indirect method, which of the following adjustments to convert net income to net cash provided by operating activities is incorrect? Add to Net Income Deduct from Net Income CALCULATO O Accounts Payable O Inventory increase decrease O decrease Accounts Receivable O decrease Prepaid Expenses increase increase Click if you would like to show Work for this question: Open Show Question Attempts of I used SAVE FORU to search
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....
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 $144,300. Depreciation recorded on store equipment for the year amounted to $23,800. 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 $57,140 $52,570 Accounts receivable (net) 40,970 38,850 Inventories 55,940 59,140 Prepaid expenses 6,290 4,990 Accounts payable (merchandise creditors) 53,540 49,730 Wages payable...
48. In calculating net cash provided by operating activities using the indirect method, an increase in...
48. In calculating net cash provided by operating activities using the indirect method, an increase in prepaid expenses during a period is: a) deducted from profit. b) added to profit. c) ignored because it does not affect profit. d) ignored because it does not affect expenses. 49. Which of the following adjustments to convert profit to net cash provided by operating activities is correct? Add to Profit Deduct from Profit a) Accounts Receivable b) Prepaid Expenses c) Inventory d) Income...
Cash Flows from Operating Activities-Indirect Method Operating Activities Indirect Method The net income reported on the...
Cash Flows from Operating Activities-Indirect Method Operating Activities Indirect Method The net income reported on the income statement for the current year was $146,300. Depreciation recorded on store equipment for the year amounted to $24,100. 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 $56,760 $52,220 Accounts receivable (net) 40,700 38,590 Merchandise inventory 55,570 58,750 6,240 4,960 Prepaid expenses Accounts payable (merchandise...
Answer choices given on the left side: (Indirect Method) Decrease in accounts payable Decrease in accounts...
Answer choices given on the left side: (Indirect Method)
Decrease in accounts payable
Decrease in accounts receivable
Decrease in income tax payable
Decrease in inventory
Decrease in prepaid rent
Decrease in salaries payable
Depreciation expense
Increase in accounts payable
Increase in accounts receivable
Increase in income tax payable
Increase in inventory
Increase in prepaid rent
Increase in salaries payable
Net income
Net loss
Operating expense
Portions of the financial statements for Alliance Technologies are provided below. $405,000 ALLIANCE TECHNOLOGIES Income...
Using the indirect method, which of the following would be added to net income? O depreciation expense O increase in prepaid expenses decrease in accounts payable O increase in accounts receivable A company just starting its business made the following four inventory purchases in June Date Jun 1 Jun 10 Jun 15 Jun 28 Number of Units 150 200 200 150 Total Cost $480 660 680 525 On June 25, the company made its first sale when a local customer...
Which of the following is Deducted from Net Income when the indirect method is used to compute cash flows from operations? Select one: a. Increase in income taxes payable O b. Depreciation expense c. Decrease in accounts payable d. Decrease in prepaid expenses е Next page
iuple Choice Question 125 Using the indirect method, which of the following adjustments to convert net income to net cash provided by operating activities is incorrect? Add to Net Income Deduct from Net Income CALCULATO O Accounts Payable O Inventory increase decrease O decrease Accounts Receivable O decrease Prepaid Expenses increase increase Click if you would like to show Work for this question: Open Show Question Attempts of I used SAVE FORU to search
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....
48. In calculating net cash provided by operating activities using the indirect method, an increase in prepaid expenses during a period is: a) deducted from profit. b) added to profit. c) ignored because it does not affect profit. d) ignored because it does not affect expenses. 49. Which of the following adjustments to convert profit to net cash provided by operating activities is correct? Add to Profit Deduct from Profit a) Accounts Receivable b) Prepaid Expenses c) Inventory d) Income...
Cash Flows from Operating Activities-Indirect Method Operating Activities Indirect Method The net income reported on the income statement for the current year was $146,300. Depreciation recorded on store equipment for the year amounted to $24,100. 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 $56,760 $52,220 Accounts receivable (net) 40,700 38,590 Merchandise inventory 55,570 58,750 6,240 4,960 Prepaid expenses Accounts payable (merchandise...
Answer choices given on the left side: (Indirect Method)
Decrease in accounts payable
Decrease in accounts receivable
Decrease in income tax payable
Decrease in inventory
Decrease in prepaid rent
Decrease in salaries payable
Depreciation expense
Increase in accounts payable
Increase in accounts receivable
Increase in income tax payable
Increase in inventory
Increase in prepaid rent
Increase in salaries payable
Net income
Net loss
Operating expense
Portions of the financial statements for Alliance Technologies are provided below. $405,000 ALLIANCE TECHNOLOGIES Income...
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