Answer clearly with workings Dec. 31, 20Y2 Dec. 31, 20Y1Accounts receivable $20,800$19,900Inventory72,00072,700Accounts payable 20,700Dividends payable 17,00019,80018,000Adjust net income of $81,300 for changes in operating assets and liabilities to arrive at net cash flow from operatingactivities.

Cash flow from operating activities includes all the operating transections. So for computing cash…

Answered: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.6.2P

See similar textbooks

Similar questions

Determining selected amounts for cash flows from operating activitiesdirect method Selected data taken from the accounting records of Ginis Inc. for the current year ended December 31 are as follows: Balance, December 31 Balance, January 1 Accrued expenses payable (operating expenses) 12,650 14,030 Accounts payable (merchandise creditors) 96,140 105,800 Inventories 178,020 193,430 During the current year, the cost of merchandise sold was 1,031,550 and the operating expenses other than depreciation were 179,400. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows. Determine the amount reported on the statement of cash flows for (a) cash payments for merchandise and (b) cash payments for operating expenses.
Statement of cash flowsdirect method applied to PR 14-1B The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 2016 and 2015, is: Dec. 31,2016 Dec. 31.201S Assets Cash 70,720 47,940 Accounts receivable (net) 207,230 188,190 Inventories 298,520 289,850 Investments. 0 102,000 Land 295,800 0 Equipment 438,600 358,020 Accumulated depreciationequipment (99,110) (84,320) Total assets 1,21,760 901,680 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) 205,700 194,140 Accrued expenses payable (operating expenses! 30,600 26,860 Dividends payable 25,500 20,400 Common stock. Si par. 202,000 102,000 Paid in capital: Excess of issue price over parcommon stock 354,000 204,000 Retained earnings 393,960 354,280 Total liabilities and stockholders equity 1,211,760 901,680 The income statement for the year ended December 31, 2016, is as follows: Sales- 2,023,898 Cost of merchandise sold 1,245,476 Gross profit 778,422 Operating expenses: Depreciation expense 14,790 Other operating expenses 517,299 Total operating expenses 532,089 Operating income 246,333 Other expenses: Loss on sale of investments (10,200) Income before income tax 236,133 Income tax expense- 94,453 Net income- 141,680 Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for 91,800 cash. d. The common stock was issued for cash. e. There was a 102,000 debit to Retained Laming for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.

Recommended textbooks for you

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Corporate Financial Accounting

Accounting

ISBN:

9781305653535

Author:

Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:

Cengage Learning

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Corporate Financial Accounting

Accounting

ISBN:

9781305653535

Author:

Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:

Cengage Learning

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting (Text Only)

Accounting

ISBN:

9781285743615

Author:

Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:

Cengage Learning

Corporate Financial Accounting

Accounting

ISBN:

9781337398169

Author:

Carl Warren, Jeff Jones

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $20,800 $19,900 Inventory 72,000 72,700 Accounts payable 20,700 19,800 Dividends payable 17,000 18,000 Adjust net income of $81,300 for changes in operating assets and liabilities to arrive at net cash flow from operating activities