BE 4-11
Operating Activities | |
Cash received from customers | 660000 |
Interest received on notes receivable | 12000 |
Interest paid on notes payable | (18000) |
Operating Expenses | (440000) |
Cash Flow from operating activities | $214000 |
Except above activities all other are not operating activities hence not included.
Note: Cash outflow is represented in parenthesis
BE 4-13
Operating Activities | |
Net Income | 45000 |
Adjustments for | |
Depreciation | 80000 |
Increase in prepaid rent | (60000) |
Increase in salaries payable | 15000 |
Increase in Income Taxes Payable | 12000 |
Cash Flow from operating activities | $92000 |
Note: Cash outflow is represented in parenthesis.
Depreciation is a non-cash expense and hence will be added back to the net income.
Increase in prepaid rent means that more cash was paid for the rent in advance and hence it will decrease the cash.
Increase in salaries payable and income taxes payable shows that more of theses expenses are retained and cash is not paid therefore, they will be added back to the net income.
BE 4-11 statement of cash flows; direct method BE 4-13 statement of cash flows; indirect method
Differentiate between the direct method and indirect method of the statement of cash flows by discussing the details of each.
Differentiate between the direct method and indirect method of the statement of cash flows by discussing the details of each.
Chapter 13 Statement of Cash Flows 667 EX 13-17 Statement of cash flows-indirect method The comparative balance sheet of Olson-Jones Test w Obj. 2, 3, 4, 5 is as follows: December 31, 2012 and 207, sting $38 Dec 31, 2012 Dec 31, 2011 Assets Cash .... Accounts receivable (net).. $183 S 14 49 Inventories Land ...... 99 117 . . .. Equipment.......... 250 330 Accumulated depreciation--equipment.. 205 175 Total assets. (68) (42) $742 5625 Liabilities and Stockholders' Equity Accounts payable...
There are two methods to prepare the statement of cash flows. The Direct & Indirect method. Which method do you prefer and why? Give specific reasons or examples.
Does CVS use the indirect or direct method to prepare their statement of cash flows?
The decision whether to use the direct or indirect method on the statement of cash flows is relevant with respect to: Question options: Operating activities only Investing activities only Financing activities only All activities
Financial statement preparers have two choices in preparing the statement of cash flows: the indirect method and the direct method. The indirect method is used extensively in practice even though the F.A.S.B. has expressed a preference for the direct method. In your initial post, discuss the similarities and differences between the direct and indirect methods, and the advantages of using each method. Your answer should illustrate understanding of the cash flow statement. A minimum of 200 to 200 words is...
Financial statement preparers have two choices in preparing the statement of cash flows: the indirect method and the direct method. The indirect method is used extensively in practice even though the F.A.S.B. has expressed a preference for the direct method. In your initial post, discuss the similarities and differences between the direct and indirect methods, and the advantages of using each method. Your answer should illustrate understanding of the cash flow statement. A minimum of 200 to 200 words is...
Problem 11-4B Prepare a statement of cash flows-indirect method. The income statement, blanace sheets, and additional indormation dor Virtual Gaming Systems are provided. Problem 11-4B Prepare a statement of cash flows-indirect method (LO11-2, 11-3, 11-4, 11-5) The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 $2,450,000 7,500 2,457,500 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold Operating...
4 Show Me How alculator eBook Statement of cash flows-indirect method Statement of Cash Flows Labels and Amount Descriptlons Instructions Instructions The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, Is shown as follows: Dec. 31, 20Y2 Dec. 31, 20Y3 Assets $150,000.00 $155,000.00 3 Cash 4Accounts receivable (net) 400,000.00 450,000.00 750,000.00 5 Inventories 770,000.00 6 Investments 100,000.00 0.00 7 Land 500,0000 0.00 Equipment 1,400,000.00 1,200,000.00 9Accumulated depreciation-equipment (600,000.00) (500,000.00) $2,675,000.00 $2,100,000.00 Total assets 10 Liabilities and...