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Hamburger Heaven's income statement for the current year and selected balance sheet data for the current and prior years ended December 31 are presented below. Income Statement $2,280 Sales Revenue Expenses: Cost of Goods Sold 950 Depreciation Expense Salaries and Wages Expense 250 550 Rent Expense 300 Insurance Expense 85 Interest Expense Utilities Expense 65 55 Net Income 25 Selected Balance Sheet Accounts Prior Year Current Year Inventory 92 65 405 500 Accounts Receivable Accounts Payable Salaries/Wages Payable Utilities Payable Prepaid Rent Prepaid Insurance 225 260 39 25 25 70 4 11 13 TIP: Prepaid Rent decreased because the amount taken out of Prepaid Rent (and subtracted from net income as Rent Expense) was more than the amount paid for rent in cash during the current year. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. TIP: Convert the cost of goods sold to cash paid to suppliers by adding the increase in inventory and adding the decrease in accounts payable. (Amounts to be deducted should be indicated with a minus sign.) Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. TIP: Convert the cost of goods sold to cash paid to suppliers by adding the increase in inventory and adding the decrease in accounts payable. (Amounts to be deducted should be indicated with a minus sign.) HAMBURGER HEAVEN Statement of Cash Flows (Partial) For the Year Ended December 31 Cash Flows from Operating Activities:

Hamburger Heaven's income statement for the current year and selected balance sheet data for the current and prior years ended December 31 are presented below. Income Statement $2,280 Sales Revenue Expenses: Cost of Goods Sold 950 Depreciation Expense Salaries and Wages Expense 250 550 Rent Expense 300 Insurance Expense 85 Interest Expense Utilities Expense 65 55 Net Income 25 Selected Balance Sheet Accounts Prior Year Current Year Inventory 92 65 405 500 Accounts Receivable Accounts Payable Salaries/Wages Payable Utilities Payable Prepaid Rent Prepaid Insurance 225 260 39 25 25 70 4 11 13 TIP: Prepaid Rent decreased because the amount taken out of Prepaid Rent (and subtracted from net income as Rent Expense) was more than the amount paid for rent in cash during the current year. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. TIP: Convert the cost of goods sold to cash paid to suppliers by adding the increase in inventory and adding the decrease in accounts payable. (Amounts to be deducted should be indicated with a minus sign.) Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. TIP: Convert the cost of goods sold to cash paid to suppliers by adding the increase in inventory and adding the decrease in accounts payable. (Amounts to be deducted should be indicated with a minus sign.) HAMBURGER HEAVEN Statement of Cash Flows (Partial) For the Year Ended December 31 Cash Flows from Operating Activities:

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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Hamburger Heaven's income statement for the current year and selected balance sheet data for the current and prior years ended December 31 are presented below. Income Statement $2,280 Sales Revenue Expenses: Cost of Goods Sold 950 Depreciation Expense Salaries and Wages Expense 250 550 Rent Expense 300 Insurance Expense 85 Interest Expense Utilities Expense 65 55 Net Income 25 Selected Balance Sheet Accounts Prior Year Current Year Inventory 92 65 405 500 Accounts Receivable Accounts Payable Salaries/Wages Payable Utilities Payable Prepaid Rent Prepaid Insurance 225 260 39 25 25 70 4 11 13 TIP: Prepaid Rent decreased because the amount taken out of Prepaid Rent (and subtracted from net income as Rent Expense) was more than the amount paid for rent in cash during the current year. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. TIP: Convert the cost of goods sold to cash paid to suppliers by adding the increase in inventory and adding the decrease in accounts payable. (Amounts to be deducted should be indicated with a minus sign.)
Transcribed Image Text:Hamburger Heaven's income statement for the current year and selected balance sheet data for the current and prior years ended December 31 are presented below. Income Statement $2,280 Sales Revenue Expenses: Cost of Goods Sold 950 Depreciation Expense Salaries and Wages Expense 250 550 Rent Expense 300 Insurance Expense 85 Interest Expense Utilities Expense 65 55 Net Income 25 Selected Balance Sheet Accounts Prior Year Current Year Inventory 92 65 405 500 Accounts Receivable Accounts Payable Salaries/Wages Payable Utilities Payable Prepaid Rent Prepaid Insurance 225 260 39 25 25 70 4 11 13 TIP: Prepaid Rent decreased because the amount taken out of Prepaid Rent (and subtracted from net income as Rent Expense) was more than the amount paid for rent in cash during the current year. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. TIP: Convert the cost of goods sold to cash paid to suppliers by adding the increase in inventory and adding the decrease in accounts payable. (Amounts to be deducted should be indicated with a minus sign.)
Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. TIP: Convert the cost of goods sold to cash paid to suppliers by adding the increase in inventory and adding the decrease in accounts payable. (Amounts to be deducted should be indicated with a minus sign.) HAMBURGER HEAVEN Statement of Cash Flows (Partial) For the Year Ended December 31 Cash Flows from Operating Activities:
Transcribed Image Text:Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. TIP: Convert the cost of goods sold to cash paid to suppliers by adding the increase in inventory and adding the decrease in accounts payable. (Amounts to be deducted should be indicated with a minus sign.) HAMBURGER HEAVEN Statement of Cash Flows (Partial) For the Year Ended December 31 Cash Flows from Operating Activities:
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