..your rjjr QS 12-4 (Algo) Indirect: Computing cash flows from operations LO P2 Cain Incorporated reports net income of $17,200. Its comparative balance sheet shows the following changes: accounts receivable increased $8, 200; inventorydecreased $10,200; prepaid insurance decreased $3,200; accounts payable increased $5,200; and taxes payabledecreased $4,200. Compute cash flows from operations using the indirect method. Note: Amounts to be deductedshould be indicated by a minus sign.

Net income: 17,200Accounts Receivable: Increased 8,200 (Subtract because an increase in AR means…

Answered: QS 12-4 (Algo) Indirect: Computing cash…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 19E

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Preparing a Statement of Cash Flows Monon Cable Television Company reported the following financial statements for 20l9: Required: 1. Prepare a statement of cash flows using the indirect method to compute net cash flow from operating activities. 2. CONCEPTUAL CONNECTION Explain what has been responsible for the decrease in cash.
Which item is added to net income when computing cash flows from operating activities? a. Gain on the disposal of property, plant, and equipment b. Increase in wages payable c. Increase in inventory d. Increase in prepaid rent Use the following information for Multiple-Choice Questions 11-9 and 11-10: Cornett Company reported the following information: cash received from the issuance of common stock, $150,000; cash received from the sale of equipment, $14,800; cash paid to purchase an investment, $20,000; cash paid to retire a note payable, $50,000; and cash collected from sales to customers, $225,000.
MC Qu. 12-85 Harlow Industries reported net income of... Harlow Industries reported net Income of $29,500 for the current year. During the year, Inventory decreased by $8,800, Accounts Payable decreased by $8,900, Depreclation Expense was $11,800, and Accounts Recelvable Increased by $8,30o. If the Indirect method is used, what is the net cash provided by operating activitles? Multiple Choice $12,300 $67,300 $32,900 $50.700
Exercise 12-7 (Algo) Indirect: Reporting cash flows from operations LO P2 Selected Year-End Balance Sheet Data Wages payable decrease Annual Income Statement Data Sales Expenses: Cost of goods sold Wages expense Amortization expense Net income $ 48,000 Inventory increase 20,000 Accounts payable decrease 12,700 1,800 $ 13,500 Prepare the operating activities section of the statement of cash flows for GreenGarden using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities-indirect method Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Assessment Tool iFrame Changes in current operating assets and liabilities $ 4,000 600 1,800 0
Question Content Area Kennedy, Inc., reported the following data: Net income $170,619 Depreciation expense 12,699 Loss on disposal of equipment (8,944) Gain on sale of building 21,259 Increase in accounts receivable 10,181 Decrease in accounts payable (2,309) Prepare the operating activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash outflows, a decrease in cash, cash payments, or any negative adjustments. Kennedy, Inc.Statement of Cash Flows Cash flows from (used for) operating activities: $- Select - Adjustments to reconcile net income to net cash flows from (used for) operating activities: - Select - - Select - - Select - Changes in current operating assets and liabilities: - Select - - Select - $- Select -
QS 12-4 (Static) Indirect: Computing cash flows from operations LO P2 Cain Incorporated reports net income of $15,000. Its comparative balance sheet shows the following changes: accounts receivable increased $6,000; inventory decreased $8,000; prepaid insurance decreased $1,000; accounts payable increased $3,000; and taxes payable decreased $2,000. Compute cash flows from operations using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Cash Flows from Operating Activities (Indirect) Adjustments to reconcile net income to net cash provided by operating activities Changes in current assets and liabilities $
Exercise 12-5 (Algo) Indirect: Cash flows from operating activities LO P2 Fitz Company reports the following information. Selected Annual Income Statement Data Selected Year-End Balance Sheet Data $ 412,000 Accounts receivable decrease 49,600 Inventory decrease 8,800 Prepaid expenses increase 6,600 Accounts payable decrease Salaries payable increase Net income $ 81,100 Depreciation expense Amortization expense Gain on sale of plant assets 44, 000 5,600 9,000 1,300 Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $
Problem 11-8A (Algo) Prepare an income statement using operating cash flow information-indirect and direct methods (LO11-3, 11-7) Cash flows from operating activities for both the indirect and direct methods are presented for Reverse Logic. All amounts are in thousands (000s). Cash Flows from Operating Activities (Indirect method) Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Increase in accounts receivable Decrease in inventory Increase in prepaid rent Decrease in accounts payable Decrease in income tax payable Net cash flows from operating activities Cash Flows from Operating Activities (Direct method) Cash received from customers Cash paid to suppliers Cash paid for operating expenses Cash paid for income taxes Net cash flows from operating activities REVERSE LOGIC Income Statement For the Year Ended December 31, 2024 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense…
Net income Accounts payable decreased by Accounts receivable increased by In preparing a company's statement of cash flows using the indirect method, the following information is available: Inventories increased by Depreciation expense Net cash provided by operating activities was: Multiple Choice #3 e $34,000. $60,000. 4 r F do s % 5 * 00 8 O O He ✓
QS 12-6 (Algo) Indirect: Computing cash from operations LO P2 NOSS COMPANY Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net Income NOSS COMPANY Selected Balance Sheet Information 2021 Current assets Accounts receivable Inventory Current liabilities Accounts payable Income taxes payable $ 94,650 35,000 70,000 Cash flows from operating activities: 50,400 3,050 $ 584,000 371,600 2020 Changes in current operating assets and liabilities 212,400 132,000 56,000 24,400 13,300 $ 11,100 $36,800 52,000 56,100 Use the information above to calculate cash flows from operating activities using the indirect method (Amounts to be deducted should be Indicated by a minus sign.) 35,700 4,200 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash S 56,000 S 56,000 56,000
Exercise 16 - 5 (Algo) Indirect: Cash flows from operating activities LO P2SFitz Company reports the following information.Selected Annual Income Statement DataNet incomeDepreciation expenseAmortization expenseGain on sale of plant assetsSelected Year - End Balance Sheet Data$ 376,000 Accounts receivable decrease 44,200 Inventory decrease 7,300 Prepaid expenses increase6, 100 Accounts payable decreaseSalaries payable increase$ 122, 40042, 5005, 8008, 8002, 400Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended

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