1. Our company uses the indirect method for cash flows from operations on our statement of cash flows. What is the dollar amount of net cash flows provided by operating activities in the statement of cash flows, given the following information?
Net income | $63,000 |
Depreciation expense | $10,200 |
Increase in accounts receivable | $600 |
Increase in prepaid expenses | $400 |
Decrease in accounts payable | $200 |
a. | $51,600 |
b. | $72,000 |
c. |
$74,000 d. 74,400 2. One of our clients ordered Job #101 on October 1. As of October 31, the job was not finished. $5,000 of direct materials has been requisitioned, and we used $4,000 worth of direct labor. Our company applies factory overhead at the end of each month at a rate of 200% of direct labor costs. In November, we added $2,000 in direct materials and $1,000 in direct labor, and we completed the job on November 15. What is the balance in our work in process inventory account related to Job #101 on October 31?
|
1 Ans:
b $72,000
Cash flows from operating activities:
|
2) Ans: d $17,000
Statement showing balance in our work in process inventory account related to Job #101 on October 31
Particulars |
job 101 |
Direct material |
$5,000 |
Direct Labor |
$4,000 |
overhead |
$8,000 |
200% of labor cost |
|
work in process Balance as on October 31st |
$17,000 |
1. Our company uses the indirect method for cash flows from operations on our statement of...
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Help me solve. Prepare a statement of cash flows using the
indirect method. Need help solving for the answers in the red
highlighted blanks.
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