I need help with this p Cash Flows from (Used for) Operating ActivitiesThe income statement disclosed the following items for the year:Depreciation expenseGain on disposal of equipmentNet incomeThe changes in the current asset and liability accounts for the year are as follows:Accounts receivableInventoryPrepaid insuranceAccounts payableIncome taxes payableDividends payabletoa. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use theminus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.RFQ SearchсCash flows from (used for) onerating activities:F5%5Increase(Decrease)$8,180(4,650)(1,750)(5,540)1,7501,220TGF66$52,50030,620402,700YHYStatement of Cash Flows (partial)2-F77LO PIECUJF88F9K909F100F111P0:+F12PrtSc+ 11Insert2:412/6/2DeleteBackspaلك Cash Flows from (Used for) Operating ActivitiesThe income statement disclosed the following items for the year:Depreciation expenseGain on disposal of equipmentNet incomeThe changes in the current asset and liability accounts for the year are as follows:Accounts receivableInventoryPrepaid insuranceAccounts payableIncome taxes payableDividends payabletoa. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use theminus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.RFQ SearchсCash flows from (used for) onerating activities:F5%5Increase(Decrease)$8,180(4,650)(1,750)(5,540)1,7501,220TGF66$52,50030,620402,700YHYStatement of Cash Flows (partial)2-F77LO PIECUJF88F9K909F100F111P0:+F12PrtSc+ 11Insert2:412/6/2DeleteBackspaلك

Cash flow from operating activity includes transactions related to cash inflow and outflow of the…

ash Flows from (Used for) Operating Activities he income statement disclosed the following items for the year: Depreciation expense Gain on disposal of equipment Net income U The changes in the current asset and liability accounts for the year are as follows: Accounts receivable Inventory Prepaid insurance Accounts payable Income taxes payable Dividends payable Increase (Decrease) $8,180 (4,650) (1,750) (5,540) 1,750 1,220 $52,500 30,620 402,700 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

ash Flows from (Used for) Operating Activities he income statement disclosed the following items for the year: Depreciation expense Gain on disposal of equipment Net income U The changes in the current asset and liability accounts for the year are as follows: Accounts receivable Inventory Prepaid insurance Accounts payable Income taxes payable Dividends payable Increase (Decrease) $8,180 (4,650) (1,750) (5,540) 1,750 1,220 $52,500 30,620 402,700 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter13: Statement Of Cash Flows

Section: Chapter Questions

Problem 7E

See similar textbooks

Similar questions

Net Cash Provided by Operating Activities Changes in various accounts and gains and losses on the sale of assets during the year for Argon Company are given below: Required: Prepare an answer sheet using the following column headings: For each item, place an X in the Add or Subtract column to indicate whether the dollar amount should be added to or subtracted from net income under the indirect method when computing the net cash provided by operating activities for the year.
Cash Flows from Operating Activities-Indirect Method The income statement disclosed the following items for the year: Depreciation expense Gain on disposal equipment Net Income The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) $33,700 19,670 209,300 Accounts receivable Inventory Prepaid insurance Accounts payable Income taxes payable Dividends payable a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Cash flows from operating activities: $5,250 (2,990) (1,120) (3,560) 1,120 790 Statement of Cash Flows (partial) Adjustments to reconcile net income to net cash flow from operating activities: Net cash flow from operating activities Changes in current operating assets and liabilities: b. Why is net cash flows from operating activities different than net…
Cash Flows from (Used for) Operating Activities The income statement disclosed the following items for the year: Depreciation expense Gain on disposal of equipment Net income The changes in the current asset and liability accounts for the year are as follows: Accounts receivable Inventory Prepaid insurance Accounts payable Income taxes payable Dividends payable Increase (Decrease) $5,190 (2,950) (1,110) (3,520) 1,110 780 $33,300 19,440 225,100 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: 27 Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Net cash flows from operating activities b. Why is net cash flows from operating…
Prepare the operating activities section of the statement of cash flows using the direct method for the current year.
Cash Flows from (Used for) Operating Activities The income statement disclosed the following items for the year: Depreciation expense Gain on disposal of equipment Net income The changes in the current asset and liability accounts for the year are as follows: Accounts receivable Inventory Prepaid insurance Accounts payable Income taxes payable Dividends payable Increase (Decrease) $5,700 (3,240) (1,220) (3,860) 1,220 850 $36,600 21,330 218,400 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Us minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Cash flows from operating activities-indirect methodThe net income reported on the income statement for the current yearwas $93,700. Depreciation recorded on store equipment for the yearamounted to $31,200. Balances of the current asset and current liabilityaccounts at the beginning and end of the year are as follows: End of Year Beginning of Year CashAccounts receivable (net)InventoriesPrepaid expensesAccounts payable (merchandise creditors)Wages payable $24,10065,00047,2003,25023,4005,300 $19,70056,00050,0008,00017,2006,400 a. Prepare the "Cash flows from operating activities" section of thestatement of cash flows, using the indirect methodb. Briefly explain why net cash flow from operating activities isdifferent than net income.
In preparing the operating activities section of the statement of cash flows by the indirect method, the depreciation expense for the period is added to the net income for the period. O True O False
What adjustment(s) should be made to reconcile net income to net cash flows from operating activities (indirect method) considering the following balances in current assets?
Reporting land acquisition for cash and mortgage note on statement of cash flows On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows:
Under the direct method of preparing a statement of cash flows, what adjustment is made for depreciation expense?