Durrand Corporation's accumulated depreciation increased by $11,258, while patents decreased by $2,787 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $3,589 from sale of land. The company earned a net income of $44,069. Assuming there were no changes in noncash current assets and liabilities, determine the net cash flows from operating activities under the indirect method.

Durrand Corporation's accumulated depreciation increased by $11,258, while patents decreased by $2,787 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $3,589 from sale of land. The company earned a net income of $44,069. Assuming there were no changes in noncash current assets and liabilities, determine the net cash flows from operating activities under the indirect method.

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 2BE

See similar textbooks

Similar questions

Roxannes Delightful Candies, Inc. began the year with a retained earnings balance of $45,000. The company had a great year and earned a net income of $80,000. However, the companys controller determined that it had made an error when calculating depreciation in the preceding year, resulting in an understated depreciation expense amount of $2,000. What is the ending retained earnings balance?
Birmingham Company has been in business for five years. Last year, it experienced rapid growth and hired a new accountant to oversee the physical assets and record acquisitions and depreciation. This year, the controller discovered that the accounting records were not in order when the new accountant took over, and a $3,000 depreciation entry was omitted resulting in depreciation expense being understated last year. How does the company make this type of correction and where is it reported?
Trumpet and Trombone Manufacturing, Inc. began the year with a retained earnings balance of $545,000. The company had a great year and earned a net income of $190,000 this year and paid dividends of $14,000. Additionally, the companys controller determined that it had made an error when calculating tax expense in the preceding year, resulting in an understated expense amount of $22,000. What is the ending retained earnings balance?
Omni Corporation's accumulated depreciation—equipment account increased by $10,100, while $6,500 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a loss of $7,700 from the sale of land. Reconcile a net income of $114,600 to net cash flow from operating activities: $________
Eastlund Corporation's accumulated depreciation—equipment account increased by $6,320, while $2,450 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $13,510 from the sale of investments. Reconcile a net income of $126,300 to net cash flows from operating activities.$fill in the blank 1
Ripley Corporation’s accumulated depreciation—furniture account increased by $7,070, while $2,520 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a loss of $5,210 from the sale of land. Reconcile a net income of $109,410 to net cash flow from operating activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
Ya Wen Corporation’s accumulated depreciation—equipment account increased by $8,750, while $3,250 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $18,750 from the sale of investments. Reconcilea net income of $175,000 to net cash flow from operating activities.
Congress Corporation's accumulated depreciation—equipment account increased by $5,000, while $3,200 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $3,800 from the sale of investments. Reconcile a net income of $56,300 to net cash flows from operating activities __________________
Mission Manufacturing’s depreciation expense for the most recent year was $72,000 and its net income was $424,000. The company’s net cash flow from operating activities was $569,600. Other information from Mission’s financial statements includes a decrease in accounts receivable of $24,000, a $27,200 increase in accounts payable, and a $9,600 decrease in prepaid expenses. The only other activity that occurred, for the company this year, was the sale of a piece of equipment whose book value was $16,000. Taking into consideration only the activities listed, what amount will Mission report in cash flows from investing activities? $3,200 cash outflow $28,800 cash inflow $12,800 cash inflow $3,200 cash inflow
The Dayton corporation began the current year with a retained earnings balance of $32,000. During the year, the company corrected an error made in the prior year, which was a failure to record a depreciation expense of $3,000 on equipment. Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $7,000. Compute the year-end retained earnings balance.
Sawaya Company had depreciation and amortization expenses of $522,311, interest expenses of $114,077, and an EBITDA of $1,521,087 for the year ended June 30, 2010. What is the Times Interest Earned for this company?
On December 31, Strike Company sold one of its batting cages for $224,697. The equipment had an original cost of $264,350 and has accumulated depreciation of $39,653. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction?