Schedule for Calculation of Cash Generated From Operating Activities
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter23: Statement Of Cash Flows
Section: Chapter Questions
Problem 11SPA: COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Horn Companys condensed income statement for the year...
Related questions
Question
Schedule for Calculation of Cash Generated From Operating Activities
Horn Company's condensed income statement for the year ended December 31, 20-2, is shown.
Net sales | $1,220,000 | |||
Cost of goods sold | 740,000 | |||
Gross profit | $480,000 | |||
Operating expenses | 142,000 | |||
Operating income | $338,000 | |||
Other revenues and expenses: | ||||
Interest revenue | $420 | |||
Interest expense | (1,200) | (780) | ||
Income before taxes | $337,220 | |||
Income tax expense | 118,000 | |||
Net income | $219,220 |
Additional information obtained from Horn's comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, is shown.
20-2 | 20-1 | |
$135,000 | $122,600 | |
Merchandise inventory | 145,300 | 158,900 |
Accounts payable | 45,000 | 87,100 |
Income tax payable | 2,000 | 1,000 |
Supplies and prepayments | 11,300 | 6,800 |
Accrued and withheld payroll taxes | 2,750 | 3,700 |
Accrued interest receivable | 90 | 210 |
Accrued interest payable | 240 | 160 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning