Answer choices given on the left side: (Indirect Method)
- Decrease in accounts payable
- Decrease in accounts receivable
- Decrease in income tax payable
- Decrease in inventory
- Decrease in prepaid rent
- Decrease in salaries payable
- Depreciation expense
- Increase in accounts payable
- Increase in accounts receivable
- Increase in income tax payable
- Increase in inventory
- Increase in prepaid rent
- Increase in salaries payable
- Net income
- Net loss
- Operating expense
Homework Answers
Solution
| ALLIANCE TECHNOLOGIES | ||
| Statement of Cash Flows (Partial) | ||
| For the Year ended December 31, 2021 | ||
| A. Cash Flows from Operating Activity | ||
| Net Income | $ 56,000.00 | |
| Adjustments to reconcile net income to net cash from operating activities | ||
| Depreciation expense | $ 17,000.00 | |
| Changes In Current Operating Assets Liabilities | ||
| Decrease in Accounts Receivable | $ 7,000.00 | |
| Increase in Inventory | $ (14,000.00) | |
| Decrease in Prepaid rent | $ 10,000.00 | |
| Increase in salaries payable | $ 6,000.00 | |
| Decrease in accounts payable | $ (9,000.00) | |
| Increase in Income taxes payable | $ 24,000.00 | |
| Net cash flow from Operating activities | $ 97,000.00 | |
.General notes for cash flow
Cash is increased when Current liability increase or Current asset
Decrease.
Cash is Decreased when Current liability Decrease or Current asset
Increase.
Depreciation or loss on sale of any asset is a non cash expense
hence it will be added to net income to get operating cash
Profit on sale of asset or investment is a non cash profit and
hence will be deducted from operating income.
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Answer choices given on the left side: (Indirect Method) Decrease in accounts payable Decrease in accounts...
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Portions of the financial statements for Alliance Technologies are provided below. ALLIANCE TECHNOLOGIES Income Statement For...
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with this info i need to do a activites section of the statement of cash flows...
with this info i need to do a activites section of the statement of
cash flows using indrect method?
Portions of the financial statements for Alliance Technologies are provided below. 301,000 ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2018 Net sales $ Expenses: Cost of goods sold be $181,000 Operating expenses 56.000 Depreciation expense Income tax expense 20,000 Total experises 272,600 Olal expenses A Net income 28,400 ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2018, compared...
Exercise 11-11A Calculate operating activities-indirect method (LO11-3) Portions of the financial statements for Peach Computer are...
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Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities....
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net Income for the 2021 fiscal year was $704,000. Depreciation and amortization expense of $83,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: look Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in salaries payable Decrease in income taxes payable $38,000 10.800 10,100 11,600 14,000...
WileyPLUS Problem 5-10 a (Indirect Method) The income statement of Tamache Corporation is shown below: TAMACHE CORPOR...
WileyPLUS Problem 5-10 a (Indirect Method)
The income statement of Tamache Corporation is shown below:
TAMACHE CORPORATION
Statement of Income
Year Ended December 31, 2020
Sales revenue
$7,216,000
Cost of goods sold
4,400,000
Gross profit
2,816,000
Operating expenses
$1,469,600
Depreciation expense
70,400
1,540,000
Profit before income tax
$1,276,000
Income tax expense
446,600
Net income
$829,400
Additional information:
1.
Accounts receivable decreased $264,000 during the year.
2.
Prepaid expenses increased $176,000 during the year.
3.
Inventory decreased $352,000 during the year....
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities....
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $639,000. Depreciation and amortization expense of $90,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in salaries payable Decrease in income taxes payable $25,000 9,500 8,800 10,300 14,000 Required:...
Amount Descriptions Decrease in accounts payable Decrease in accounts receivable Decrease in inventories Decrease in prepaid...
Amount Descriptions
Decrease in accounts payable
Decrease in accounts receivable
Decrease in inventories
Decrease in prepaid expenses
Decrease in salaries payable
Depreciation
Increase in accounts payable
Increase in accounts receivable
Increase in inventories
Increase in prepaid expenses
Increase in salaries payable
Net cash flow from operating activities
Net cash flow used for operating activities
Net income
Net loss
The net income reported on the income statement for the current year was $210,000. Depreciation recorded on equipment and a building amount...
Problem 11-3A Calculate operating activities-indirect method (LO11-3) Portions of the financial statements for Alliance Technologies are provided below ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2021 $365,000 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses $215,e00 66,000 16,600 25,000 322,600 $ 42,400 Net income es ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 Decrease in accounts receivable Increase in inventory Decrease in prepaid...
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$315,000 ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2021 Net sales Expenses: Cost of goods sold $190,000 Operating expenses 61,000 Depreciation expense 16,100 Income tax expense 22,500 Total expenses 289,600 $ 25,400 Net income ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Increase in salaries payable Decrease in accounts payable Increase in income tax payable $ 6,100 13,100 9,100 5,100...
Portions of the financial statements for Alliance Technologies are provided below. ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2021 $315,000 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses $190,000 61,000 16,100 22,500 289,600 $ 25,400 Net income ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 $6,100 13,100 9,100 5,100 8,100 20,400 Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Increase...
with this info i need to do a activites section of the statement of
cash flows using indrect method?
Portions of the financial statements for Alliance Technologies are provided below. 301,000 ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2018 Net sales $ Expenses: Cost of goods sold be $181,000 Operating expenses 56.000 Depreciation expense Income tax expense 20,000 Total experises 272,600 Olal expenses A Net income 28,400 ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2018, compared...
Exercise 11-11A Calculate operating activities-indirect method (LO11-3) Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2021 Net sales $1,950,000 Expenses: Cost of goods sold $1,110,000 Operating expenses 620,000 Depreciation expense 56,000 Income tax expense 46,000 Total expenses 1,832,000 Net income $ 118,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (I) Decrease (D) $20,000 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable 2021...
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net Income for the 2021 fiscal year was $704,000. Depreciation and amortization expense of $83,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: look Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in salaries payable Decrease in income taxes payable $38,000 10.800 10,100 11,600 14,000...
WileyPLUS Problem 5-10 a (Indirect Method)
The income statement of Tamache Corporation is shown below:
TAMACHE CORPORATION
Statement of Income
Year Ended December 31, 2020
Sales revenue
$7,216,000
Cost of goods sold
4,400,000
Gross profit
2,816,000
Operating expenses
$1,469,600
Depreciation expense
70,400
1,540,000
Profit before income tax
$1,276,000
Income tax expense
446,600
Net income
$829,400
Additional information:
1.
Accounts receivable decreased $264,000 during the year.
2.
Prepaid expenses increased $176,000 during the year.
3.
Inventory decreased $352,000 during the year....
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $639,000. Depreciation and amortization expense of $90,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in salaries payable Decrease in income taxes payable $25,000 9,500 8,800 10,300 14,000 Required:...
Amount Descriptions
Decrease in accounts payable
Decrease in accounts receivable
Decrease in inventories
Decrease in prepaid expenses
Decrease in salaries payable
Depreciation
Increase in accounts payable
Increase in accounts receivable
Increase in inventories
Increase in prepaid expenses
Increase in salaries payable
Net cash flow from operating activities
Net cash flow used for operating activities
Net income
Net loss
The net income reported on the income statement for the current year was $210,000. Depreciation recorded on equipment and a building amount...
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