Express Corporation had a net income of $66,000 during 2011. During the year, the company had...
Express Corporation had a net income of $66,000 during 2011. During the year, the company had depreciation expense of $28,000. Accounts receivable decreased by $22,000, and accounts payable decreased by $10,000. Those were the company’s only current assets and liabilities. Use the indirect method to determine net cash flows from operating activities.
Homework Answers
- Depreciation expense is a non-cash item. Therefore, it is added back to net profit.
- Increase in current assets is reduced from the net profit. Decrease in current assets is added to the net profit.
- Increase in current liabilities is added to the net profit. Decrease in current liabilities is reduced from the net profit.
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Express Corporation had a net income of $66,000 during 2011.
During the year, the company had...
QUESTION 1 A company had net income of $252.000. Depreciation expense was $26,000. During the year,...
QUESTION 1 A company had net income of $252.000. Depreciation expense was $26,000. During the year, accounts receivable and inventory increased by $15.000 and $40.000, respectively. Prepaid expenses and accounts payable decreased by $2.000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method? a. $284.000 b. $305,000 c. $217,000 d. $224.000 QUESTION 2 The...
Dair Company's income statement and comparative balance sheets follow. DAIR COMPANY Income Statement For Year Ended...
Dair Company's income statement and comparative balance sheets follow. DAIR COMPANY Income Statement For Year Ended December 31, 2011 Sales $ 700,000 Cost of goods sold $ 440,000 Wages and other operating expenses 95,000 Depreciation expense 21,000 Amortization expense 6,000 Interest expense 10,000 Income tax expense 36,000 Loss on bond retirement 5,000 613,000 Net income $87,000 DAIR COMPANY Balance Sheets Dec 31, 2011 Dec 31, 2010 Assets Cash $ 22,000 $18,000 Accounts receivable 54,000 48,000 Inventory 103,000 109,000 Prepaid expenses...
A company had net income of $261,141. Depreciation expense was $29,049. During the year, accounts receivable...
A company had net income of $261,141. Depreciation expense was $29,049. During the year, accounts receivable and inventory increased by $17,501 and $29,698, respectively. Prepaid expenses and accounts payable decreased by $2,453 and $5,792, respectively. There was also a loss on the sale of equipment of $7,253. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method? a. $232,399 b. $246,905 c. $297,443 O d. $288,585
10 A company had net income of $231,467. Depreciation expense was $26,338. During the year, accounts...
10 A company had net income of $231,467. Depreciation expense was $26,338. During the year, accounts receivable and inventory increased by $18,957 and $38,824, respectively. Prepaid expenses and accounts payable decreased by $1,764 and $5,616, respectively. There was also a loss on the sale of equipment of $4,598. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method? a.$200,770 b.$246,388 c.$262,403 d.$191,574 11 Land costing $130,147 was sold for $174,490...
For the just completed year, Hanna Company had net income of $35,000. Balances in the company’s...
For the just completed year, Hanna Company had net income of
$35,000. Balances in the company’s current asset and current
liability accounts at the beginning and end of the year were as
follows:
December 31
End of Year
Beginning of Year
Current assets:
Cash and cash equivalents
$
30,000
$
40,000
Accounts receivable
$
125,000
$
106,000
Inventory
$
213,000
$
180,000
Prepaid expenses
$
6,000
$
7,000
Current liabilities:
Accounts payable
$
210,000
$
195,000
Accrued liabilities
$
4,000...
For the just completed year, Hanna Company had net income of $90,500. Balances in the company's...
For the just completed year, Hanna Company had net income of $90,500. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows: December 31 End of Beginning of Year Year Current assets: Cash and cash equivalents Accounts receivable $61,000 $ 84,000 $168,000 $186,000 $442,000 $346,000 12,000 14,000 Inventory Prepaid expenses Current liabilities: Accounts payable $356,000 $384,000 8,500 13,000 33,000 28,000 Accrued liabilities Income taxes payable The Accumulated Depreciation account...
Bagrov Corporation had a net decrease in cash of $18,500 for the current year. Net cash...
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For the just completed year, Hanna Company had net income of $68,500. Balances in the company's...
For the just completed year, Hanna Company had net income of $68,500. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows: December 31 End of Beginning Year of Year Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income taxes payable $ 57,000 $ 82,000 $168,000 $194,000 $430,000 $355,000 $ 11,000 $14,500 $ 350,000 $380,000 $ 7,500 $ 13,000 $...
Statement of Cash Flows (Indirect Method) Dair Company's income statement and comparative balance sheets follow. DAIR...
Statement of Cash Flows (Indirect Method) Dair Company's income statement and comparative balance sheets follow. DAIR COMPANY Income Statement For Year Ended December 31,2011 Sales $ 700,000 Cost of goods sold $ 440,000 Wages and other operating expenses 95,000 Depreciation expense 21,000 Amortization expense 6,000 Interest expense 10,000 Income tax expense 36,000 Loss on bond retirement 5,000 613,000 Net income $87,000 DAIR COMPANY Balance Sheets Dec. 31, 2011 Dec. 31, 2010 Assets Cash $ 22,000 $ 18,000 Accounts receivable 54,000...
Rogers Company reported net income of $35,000 for the year. During the year, accounts receivable increased...
Rogers Company reported net income of $35,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000, and depreciation expense of $8,000 was recorded. Net cash provided by operating activities under the indirect method for the year is a. $53,000 b. $47,000 c. $33,000 d. $37,000
QUESTION 1 A company had net income of $252.000. Depreciation expense was $26,000. During the year, accounts receivable and inventory increased by $15.000 and $40.000, respectively. Prepaid expenses and accounts payable decreased by $2.000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method? a. $284.000 b. $305,000 c. $217,000 d. $224.000 QUESTION 2 The...
Dair Company's income statement and comparative balance sheets follow. DAIR COMPANY Income Statement For Year Ended December 31, 2011 Sales $ 700,000 Cost of goods sold $ 440,000 Wages and other operating expenses 95,000 Depreciation expense 21,000 Amortization expense 6,000 Interest expense 10,000 Income tax expense 36,000 Loss on bond retirement 5,000 613,000 Net income $87,000 DAIR COMPANY Balance Sheets Dec 31, 2011 Dec 31, 2010 Assets Cash $ 22,000 $18,000 Accounts receivable 54,000 48,000 Inventory 103,000 109,000 Prepaid expenses...
A company had net income of $261,141. Depreciation expense was $29,049. During the year, accounts receivable and inventory increased by $17,501 and $29,698, respectively. Prepaid expenses and accounts payable decreased by $2,453 and $5,792, respectively. There was also a loss on the sale of equipment of $7,253. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method? a. $232,399 b. $246,905 c. $297,443 O d. $288,585
For the just completed year, Hanna Company had net income of
$35,000. Balances in the company’s current asset and current
liability accounts at the beginning and end of the year were as
follows:
December 31
End of Year
Beginning of Year
Current assets:
Cash and cash equivalents
$
30,000
$
40,000
Accounts receivable
$
125,000
$
106,000
Inventory
$
213,000
$
180,000
Prepaid expenses
$
6,000
$
7,000
Current liabilities:
Accounts payable
$
210,000
$
195,000
Accrued liabilities
$
4,000...
For the just completed year, Hanna Company had net income of $90,500. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows: December 31 End of Beginning of Year Year Current assets: Cash and cash equivalents Accounts receivable $61,000 $ 84,000 $168,000 $186,000 $442,000 $346,000 12,000 14,000 Inventory Prepaid expenses Current liabilities: Accounts payable $356,000 $384,000 8,500 13,000 33,000 28,000 Accrued liabilities Income taxes payable The Accumulated Depreciation account...
For the just completed year, Hanna Company had net income of $68,500. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows: December 31 End of Beginning Year of Year Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income taxes payable $ 57,000 $ 82,000 $168,000 $194,000 $430,000 $355,000 $ 11,000 $14,500 $ 350,000 $380,000 $ 7,500 $ 13,000 $...
Statement of Cash Flows (Indirect Method) Dair Company's income statement and comparative balance sheets follow. DAIR COMPANY Income Statement For Year Ended December 31,2011 Sales $ 700,000 Cost of goods sold $ 440,000 Wages and other operating expenses 95,000 Depreciation expense 21,000 Amortization expense 6,000 Interest expense 10,000 Income tax expense 36,000 Loss on bond retirement 5,000 613,000 Net income $87,000 DAIR COMPANY Balance Sheets Dec. 31, 2011 Dec. 31, 2010 Assets Cash $ 22,000 $ 18,000 Accounts receivable 54,000...
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