Statement of Cash flows | ||
Cash flow from operating activities | ||
Net Income | 78000 | |
Add (deduct) items to convert net income to cash basis | ||
Depreciation expense | 29000 | |
Amortization expense | 7000 | |
Gain on sale of equipment | -7000 | |
Accounts payable increase | 13000 | |
Accounts receivable increase | -4000 | |
Inventory decrease | 13000 | |
Accrued liabilities decrease | -6000 | |
Prepaid expense increase | -3000 | 42000 |
Cash provided by operating activities | 120000 | |
Cash flow from investing activities | ||
Cash paid to purchase land | -90000 | |
Cash received from sale of equipment | 17000 | |
Cash used by investing activities | -73000 | |
Cash flow from financing activities | ||
Cash received from issue of common stock | 40000 | |
Cash paid to retire bonds payable at par | -60000 | |
Cash paid as dividends | -31000 | |
Cash used in financing activities | -51000 | |
Net decrease in cash | -4000 | |
Add: Cash balance, January 1 | 21000 | |
Cash balance , December 31 | 17000 |
Operating cash flow to current liability ratio = 120,000 / 140,000 = 0.86 (rounded to two decimals)
Question 12-4A Use the cash flow from operating activities using the indirect method. E2-44. Statement of...
Calculate the cash flow from operating activites 5A. Cash Flow from Operating Activities (Indirect Method) The Azuza Company owns no plant as- sets and had the following income statement for the year: $930,000 $650,000 210,000 42,000 venue Sales revenue....... ......................................... Cost of goods sold ..... Wages expense ........ Rent expense.............. Utilities expense........ Net income 12.000 914,000 $ 16,000 Additional information about the company includes: Cambridge Business Publishers Statement of Cash Flows End of Year Beginning of Year Accounts receivable......... Inventory........
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Cash Flow from Operating Activities (Indirect Method) The Azuza Company owns no plant assets and had the following income statement for the year: Sales revenue $930,000 Cost of goods sold $650,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 12,000 914,000 Net income $16,000 Additional information about the company includes: End of Year Beginning of Year Accounts receivable $67,000 $59,000 Inventory 62,000 86,000 Prepaid rent 9,000 7,000 Accounts payable 22,000 30,000 Wages payable 9,000 7,000 Use the preceding information to...
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Cash Flows from Operating Activities-Indirect Method Operating Activities Indirect Method The net income reported on the income statement for the current year was $146,300. Depreciation recorded on store equipment for the year amounted to $24,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $56,760 $52,220 Accounts receivable (net) 40,700 38,590 Merchandise inventory 55,570 58,750 6,240 4,960 Prepaid expenses Accounts payable (merchandise...
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When creating the operating section of the cash flow statement using the indirect method are the following adjustments added to Net Income or subtracted from Net Income? Depreciation expense (Select] Gain on sale of long-term asset [Select ] Loss on sale of long-term asset (Select] Increase in short-term liabilities (Select] Decrease in short-term assets [Select] Decrease in short-term liabilities (Select] Increase in short-term assets (Select] [Select] W added to subtracted from added to Net Income for A company is $100,000....
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremont Corporation to prepare a statement of cash flows using the indirect method: Accounts payable increase $14,000 Accounts receivable increase 7,000 Accrued liabilities decrease 5,000 Amortization expense 31,000 Cash balance, January 1 21,000 Cash balance, December 31 141,000 Cash paid as dividends 41,000 Cash paid to purchase land 81,000 Cash paid to retire bonds payable at par 70,000 Cash received from issuance of common stock 75,000 Cash received...
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Cash Flows from Operating Activities-Indirect Method The income statement disclosed the following items for the year: Depreciation expense $46,000 26,830 Gain on disposal of equipment 287,600 Net income The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $7,160 (4,080) Inventory Prepaid insurance (1,530) (4,860) Accounts payable Income taxes payable 1,530 Dividends payable 1,070 a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the...