Question
Demers Inc. reported the following data:
Net income $402,000
Depreciation expense 46,830
Gain on disposal of equipment 37,290
Decrease in accounts receivable 26,780
Decrease in accounts payable 6,820
 
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Cash Flow Statements

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Classique Household Furnishings & Appliances is a family-owned furniture store. You are the mana...

A: Cash Budget A cash budget is a budget prepared by the company which shows the net cash of the compan...

Q: On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker ...

A: a.

Q: The trail balance columns of the worksheet for Khareef Company at September 30, 2019, are as follows...

A: Definition:   Trial balance: Trial balance is a summary of all the ledger accounts balances presente...

Q: Which one of the following is correct (i) A ratio is an arithmetical relationship of one number to a...

A: Answer:   Option D.

Q: Calculating breakeven point for two products Scotty’s Scooters plans to sell a standard scooter for ...

A: Click to see the answer

Q: What are the possible reasons for keeping incomplete records?

A: Incomplete records:   It refers to a situation where an organization does not use double entry book ...

Q: company just paid a dividend of 1.50 a share. the dividend is expected to grow by 5%per year for the...

A: Dividends per share is a dividend paid for a single share. Currently, the company paid $1.5 dividend...

Q: Computing margin of safety Robbie’s Repair Shop has a monthly target profit of $31,000. Variable cos...

A: 1. Contribution Margin = Fixed costs + Profit(target) = $19,000 + $31,000 = $50,000 2. Contribution ...

Q: Explain the statement: “Receipt and Payment Account is a summarisedversion of Cash Book”.

A: Receipts and payment account is a real account. It records all the cash and bank transactions made d...

Q: Preparing an operating budget—sales budget Yarbrough Company manufactures T-shirts printed with tour...

A: Budget:   It is a statement of estimated revenues and expenditures prepared by the company relating ...

Q: On January 1, Hazard Company, a lessee, entered into three noncancelable leases for brand new genera...

A: 1) Lease is an agreement in which one party allows the other party to use the assets for considerati...

Q: What is Discovery Sampling?

A: Discovery sampling can be used by the audit team as follows: Go to the AICPA sampling tables Comput...

Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned is under ...

A: D) Margin of safety (units) = Actual sold units - Break even point units =6000-4000 units =2000 unit...

Q: Fill in the blanks: An increase in accrued income during the particular year is ________________the ...

A: Income:   It is a form of earnings for the company resulting from business activities.

Q: 1. Started business with OMR 45,000 2. Purchase goods from Mr. Ahmed OMR 9,000 3. Bought machine for...

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub parts f...

Q: Computing breakeven sales and sales needed to earn a target profit graphing CVP relationships, perfo...

A: Click to see the answer

Q: You are investing your money and opening a fast-food Mexican restaurant that accepts only cash for p...

A: Definition:   Internal control: Internal control is a process which ensures continuous reliability o...

Q: Compute Lead Time Jackson Fabricators Inc. machines metal parts for the automotive industry. Under t...

A: Working: 1. Value added time = Minutes in milling + Minutes in finishing                           ...

Q: State the meaning of ‘Not- for- Profit’ Organisations.

A: Not for profit organisations are also known as non business entity. These organisations are not form...

Q: Computing breakeven sales and sales needed to earn a target profit; performing sensitivity analysis ...

A: Since the student has posted multiple requirements, we shall answer the first three alone alone.

Q: Give two examples of capital receipts which are directly added to the capital fund.

A: A capital receipt is a receipt for the business that either create a liability or results in the red...

Q: Differential Analysis for a Discontinued Product   can you please help with A?

A: While performing a differential analysis, we need to ignore the fixed costs as the fixed costs will ...

Q: If a company increases its sales price per unit for Product A, the new breakeven point will a. incre...

A: Formula for Breakeven point: Breakeven point = Total Fixed cost / Contribution margin per unit Where...

Q: 6. Smith Company was organized on August 1 of the current year. Projected sales for the next three m...

A:   Particulars August September October Projected sales       (a) 250000 200000 275000 Multipl...

Q: Paul and Donna Kelsch are planning a Mediterranean cruise in 5 years and will need $9,500 for the tr...

A: Calculations: Future value of Annuity. Formula = P{ ( 1+r) N - 1 / R } P = quarterly payments. R = I...

Q: Instruction a) Journalize the closing entries at December 31, 2019 b) Post the closing entries to "“...

A: Journalize the closing entries at December 31, 2019, as follows: To account for all the expenses to ...

Q: Average Rate of Return—New Product.   Can you please help?

A: Calculate the net income: Selling price per unit $173 Less:Total cost per unit ($152.60) Net i...

Q: What budgets are included in the financial budget for a merchandising company?

A: Budgets included in the financial budget for a merchandising company: Cash budget Budgeted Income S...

Q: Mel Snow is the manager of a firm, Taxation Matters, which specialises in the preparation of incomet...

A: Activity rate =  Activity cost / No of activities Under abc costing method, cost is allocated to pro...

Q: Computing product costs in an ABC system The Alexander Manufacturing Company in Rochester, Minnesota...

A: 1) Activity Allocation base Cost allocated to each unit Amount $ Start station Number of raw co...

Q: In cash flow statement, increase in current asset [A] increases cash [B] decreases cash [C] increas...

A: Cash flow statement is a statement which shows all cash inflows and  cash outflows in a particular p...

Q: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2017, by issuing 9...

A: Click to see the answer

Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned Operating...

A: Click to see the answer

Q: The Spanish Watch Company has two divisions and manufactures one type of watch. The two divisions ar...

A: We are authorized to answer three sub parts at a time, since you have not mentioned which part you a...

Q: During a recent month, Cleveland Company planned to provide cleaning services to 30 customers for $2...

A: Budgeted revenue = Budgeted no. of customers x budgeted hours per job x rate per hour = 30*3*25 = $2...

Q: The company, which has only one product, has provided the following data concerning its most recent ...

A: Under variable costing, the product costs only include direct material, direct labor, and variable f...

Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned Operating...

A: We are authorized to answer three sub parts at a time, since you have not mentioned which part you a...

Q: Budgeting benefits List the three key benefits companies get from preparing a budget.

A: Budget: Budget is prepared by Managers. A financial plan that managers use to coordinate a business ...

Q: Determining total variable cost For each variable cost per unit listed below, determine the total va...

A: Total variable cost = No. of units produced x variable cost  per unit

Q: Hemphill Corporation uses customers served as its measure of activity. During June, the company budg...

A:   Particulars Actual result $ Flexible budget $ Variance Revenue 85400 85500 100...

Q: Hassan Company reports the following for the month of June.     Units Unit cost Total C...

A: Definition:   Perpetual inventory system: The method or system of maintaining, recording, and adjust...

Q: Computing contribution margin in total, per unit, and as a ratio Complete the table below for contri...

A: 1. Contribution Margin per unit = Sales price per unit - Variable costs per unit 2. Total contributi...

Q: answers are  39. C 40. A   how do you get to these answers?

A: Insurance means the safety against the loss in financial terms. It is used for hedging or minimizing...