The following information is related to Somerset Company's fiscal year 2018.
Income Statement:
Net Income $4,000,000
Depreciation Expense 650,000
Gain on Sale of Plant Assets 50,000
Interest Expense 5,000
Balance Sheet - 12/31/17: Increase (Decrease)
Accounts Receivable ($45,000)
Plant Assets - Purchased 250,000
Plant Assets - Disposals (100,000)
Additional Information:
Common Stock exchanged for outstanding Long Term Notes Payable of $150,000
Dividends paid were $35,000
Use this information to prepare a partial Statement of
Cash Flows for Somerset Company. Prepare only the section related
to Cash Flows from Operating Activities.
**Please place values in appropriate columns Debit/Credit for
preparing partial statement**
Answer:
SOMERSET COMPANY
Statement of Cash Flow (Partial)
for the year ended December 31, 2018
Cash flow to Operating Activities: | ||
Net Income | 4,000,000 | |
Adjustment to reconcile Net Income to Net cash provided by Operating Activities | ||
Depreciation Expense | 650,000 | |
Gain on Sale of Plant Assets | -50,000 | |
Decrease in Accounts Receivable | 45,000 | 645,000 |
Net Cash provided by Operating Activities | 4,645,000 |
The following information is related to Somerset Company's fiscal year 2018. Income Statement: &n
The following information is related to Somerset Company's fiscal year 2018. Income Statement: Net Income $4,000,000 Depreciation Expense 650,000 Gain on Sale of Plant Assets 50,000 Interest Expense 5,000 Balance Sheet - 12/31/17: Increase (Decrease) Accounts Receivable ($45,000) Plant Assets - Purchased 250,000 Plant Assets - Disposals (100,000) Additional Information: Common Stock exchanged for outstanding Long Term Notes Payable of $150,000 Dividends paid were $35,000 Use this information to prepare a partial Statement of Cash Flows for Somerset Company. Prepare...
Question 17 (20 points) The following information is related to Somerset Company's fiscal year 2018. Income Statement: Net Income $4,000,000 Depreciation Expense 650,000 Gain on Sale of Plant Assets 50,000 Interest Expense 5,000 Balance Sheet - 12/31/17: Increase (Decrease) Accounts Receivable ($45,000) Plant Assets - Purchased 250,000 Plant Assets - Disposals (100,000) Additional Information: Common Stock exchanged for outstanding Long Term Notes Payable of $150,000 Dividends paid were $35,000 Use this information to prepare a partial Statement of Cash Flows...
Question 17 (20 points) The following information is related to Somerset Company's fiscal year 2018. Income Statement: Net Income $4,000,000 Depreciation Expense 650,000 Gain on Sale of Plant Assets 50,000 Interest Expense 5,000 Balance Sheet - 12/31/17: Increase (Decrease) Accounts Receivable ($45,000) Plant Assets - Purchased 250,000 Plant Assets - Disposals (100,000) Additional Information: Common Stock exchanged for outstanding Long Term Notes Payable of $150,000 Dividends paid were $35,000 Use this information to prepare a partial Statement of Cash Flows...
The following information is related to Towson Company's fiscal year 2018. Income Statement: Net Income $4,000,000 Depreciation Expense 300,000 Loss on Sale of Plant Assets 25,000 Interest Expense 5,000 Balance Sheet - 12/31/17: Increase (Decrease) Accounts Payable decrease 50,000 Plant Assets - Purchased 250,000 Plant Assets - Disposals (100,000) Additional Information: Common Stock exchanged for outstanding Long Term Notes Payable of $125,000 Dividends paid were $30,000...
The following information is related to Towson Company's fiscal year 2018. Income Statement: Net Income $4,000,000 Depreciation Expense 300,000 Loss on Sale of Plant Assets 25,000 Interest Expense 5,000 Balance Sheet - 12/31/17: Increase (Decrease) Accounts Payable decrease 50,000 Plant Assets - Purchased 250,000 Plant Assets - Disposals (100,000) Additional Information: Common Stock exchanged for outstanding Long Term Notes Payable of $125,000 Dividends paid were $30,000...
The following information is related to Towson Company's fiscal year 2018. Income Statement: Net Income $2,800,000 Depreciation Expense 400,000 Loss on Sale of Plant Assets 50,000 Interest Expense 5,000 Balance Sheet - 12/31/17: Increase (Decrease) Accounts Payable decrease 45,000 Plant Assets - Purchased 250,000 Plant Assets - Disposals (100,000) Additional Information: Common Stock exchanged for outstanding Long Term Notes Payable of $125,000 Dividends paid were $30,000 Use this information to determine Towson Company's Net Cash Flows from Operating Activities. If the...
The following information is related to Towson Company's fiscal year 2018. Income Statement: Net Income $4,000,000 Depreciation Expense 550,000 Loss on Sale of Plant Assets 25,000 Interest Expense 5,000 Balance Sheet - 12/31/17: Increase (Decrease) Accounts Payable decrease 40,000 Plant Assets - Purchased 250,000 Plant Assets - Disposals (100,000) Additional Information: Common Stock exchanged for outstanding Long Term Notes Payable of $125,000 Dividends paid were $30,000 Use this information to determine Towson Company's Net Cash Flows from Operating Activities. If the...
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