Homework Answers
Solution:
As depreciation is a non cash expense,therefore it will be deducted from selling and administrative expenses to arrive at cash base. Further increase in prepaid expenses represents expenses paid in advance and not reflected in income statement, therefore this increase will be added to selling and administrative expenses to arrive at cash base.
Hence 3rd option is correct,
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Crabbe Company reported $80,000 of selling and administrative expenses on its income statement for the past...
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Cridberg Corporation's selling and administrative expenses for last year totaled $282,000. During the year the company's prepaid expense account balance increased by $29,000 and accrued liabilities decreased by $23,000. Depreciation for the year was $47,000. Based on this information, selling and administrative expenses adjusted to a cash basis under the direct method on the statement of cash flows would be: Multiple Choice $277,000 $381,000 $183,000 $287,000
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Wiley Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling...
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Wiley Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling...
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Wiley Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling...
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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...
Wiley Company's income statement for Year 2 follows: $ 2,100 1.200 900 Sales Cost of goods...
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Wiley Company's income statement for Year 2 follows: $ 2,950 1,500 1,450 Sales Cost of goods...
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Wiley Company's income statement for Year 2 follows: Sales $2,500 Cost of goods sold 1,100 Gross...
Wiley Company's income statement for Year 2 follows: Sales $2,500 Cost of goods sold 1,100 Gross margin 1,400 Selling and administrative expenses 500 Income before taxes 900 Income taxes Net income $ 540 360 The company's selling and administrative expense for Year 2 includes $76 of depreciation expense. Selected balance sheet accounts for Wiley at the end of Years 1 and 2 are as follows: Year 2 Year 1 $210 $154 $ 38 $250 $196 $ 26 Current Assets Accounts...
Wiley Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Income before taxes Income taxes Net income $ 2,750 1,500 1,250 400 850 $ 510 The company's selling and administrative expense for Year 2 includes $76 of depreciation expense. Selected balance sheet accounts for Wiley at the end of Years 1 and 2 are as follows: Year 2 Year 1 $215 $154 $ 40 $245 $196 $ 30 Current Assets Accounts...
Wiley Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Income before taxes Income taxes Net income $ 2,850 1.4ee 1.450 380 1,150 460 $ 699 The company's selling and administrative expense for Year 2 includes $78 of depreciation expense. Selected balance sheet accounts for Wiley at the end of Years 1 and 2 are as follows: Year 2 Year 1 Current Assets Accounts receivable Inventory Prepaid expenses Current Liabilities Accounts...
Wiley Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Income before taxes Income taxes Net income $ 150,000 90,000 60,000 40,000 20,000 8,000 $ 12,000 The company's selling and administrative expense for Year 2 includes $7,500 of depreciation expense. Selected balance sheet accounts for Wiley at the end of Years 1 and 2 are as follows: Year i $30,000 $45,000 $ 6,000 Year 2 Current Assets Accounts receivable $ 40,000...
Wiley Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Income before taxes Income taxes Net income $ 2,450 1,400 1,050 400 650 260 $ 390 The company's selling and administrative expense for Year 2 includes $76 of depreciation expense. Selected balance sheet accounts for Wiley at the end of Years 1 and 2 are as follows: Year 2 Year 1 $215 $164 $ 39 $ 235 $194 $ 22 Current...
1. Cash borrowed from another corporation would be reported in which section of the Statement of Cash Flows? a. Operating Activities b. Investing Activities c Financing Activities d. This would not be reported on the Statement of Cash Flows. Depreciation is deducted when calculating cash outflows for operating expenses when using the direct method because: a. depreciation is not an expense we pay cash for. b. depreciation belongs in the cash outflows for financing activities. c. depreciation is an accrued...
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Wiley Company's income statement for Year 2 follows: $ 2,100 1.200 900 Sales Cost of goods sold Gross margin Selling and administrative expenses Income before taxes Income taxes Net income 500 400 160 240 $ The company's selling and administrative expense for Year 2 includes $74 of depreciation expense. Selected balance sheet accounts for Wiley at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 210 $154 $ 41 $235 $ 198 $ 29...
Wiley Company's income statement for Year 2 follows: $ 2,950 1,500 1,450 Sales Cost of goods sold Gross margin Selling and administrative expenses Income before taxes Income taxes Net income 300 1,150 460 $ 690 The company's selling and administrative expense for Year 2 includes $80 of depreciation expense. Selected balance sheet accounts for Wiley at the end of Years 1 and 2 are as follows: Year 2 Year 1 $215 $152 $ 39 $260 $192 $ 22 Current Assets...
Wiley Company's income statement for Year 2 follows: Sales $2,500 Cost of goods sold 1,100 Gross margin 1,400 Selling and administrative expenses 500 Income before taxes 900 Income taxes Net income $ 540 360 The company's selling and administrative expense for Year 2 includes $76 of depreciation expense. Selected balance sheet accounts for Wiley at the end of Years 1 and 2 are as follows: Year 2 Year 1 $210 $154 $ 38 $250 $196 $ 26 Current Assets Accounts...
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