The net income reported on the income statement for the current year was $122,000. Depreciation recorded on store equipment for the year amounted to $20,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $47,460 $43,660 Accounts receivable (net) 34,030 32,260 Merchandise inventory 46,460 49,120 Prepaid expenses 5,220 4,150 Accounts payable (merchandise creditors) 44,470 41,300 Wages payable 24,300 26,980 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: $fill in the blank 12e1f1fab05a039_2 Adjustments to reconcile net income to net cash flow from operating activities: fill in the blank 12e1f1fab05a039_4 Changes in current operating assets and liabilities: fill in the blank 12e1f1fab05a039_6 fill in the blank 12e1f1fab05a039_8 fill in the blank 12e1f1fab05a039_10 fill in the blank 12e1f1fab05a039_12 fill in the blank 12e1f1fab05a039_14 Net cash flow from operating activities $fill in the blank 12e1f1fab05a039_15 b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when .
The net income reported on the income statement for the current year was $122,000. Depreciation recorded on store equipment for the year amounted to $20,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $47,460 $43,660 Accounts receivable (net) 34,030 32,260 Merchandise inventory 46,460 49,120 Prepaid expenses 5,220 4,150 Accounts payable (merchandise creditors) 44,470 41,300 Wages payable 24,300 26,980 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: $fill in the blank 12e1f1fab05a039_2 Adjustments to reconcile net income to net cash flow from operating activities: fill in the blank 12e1f1fab05a039_4 Changes in current operating assets and liabilities: fill in the blank 12e1f1fab05a039_6 fill in the blank 12e1f1fab05a039_8 fill in the blank 12e1f1fab05a039_10 fill in the blank 12e1f1fab05a039_12 fill in the blank 12e1f1fab05a039_14 Net cash flow from operating activities $fill in the blank 12e1f1fab05a039_15 b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when .
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2E: Cost of Goods Sold and Income Statement Schuch Company presents you with the following account...
Related questions
Question
The net income reported on the income statement for the current year was $122,000.
End of Year | Beginning of Year | |||
Cash | $47,460 | $43,660 | ||
Accounts receivable (net) | 34,030 | 32,260 | ||
Merchandise inventory | 46,460 | 49,120 | ||
Prepaid expenses | 5,220 | 4,150 | ||
Accounts payable (merchandise creditors) | 44,470 | 41,300 | ||
Wages payable | 24,300 | 26,980 |
a. Prepare the
Statement of Cash Flows (partial) | ||
Cash flows from operating activities: | ||
$fill in the blank 12e1f1fab05a039_2 | ||
Adjustments to reconcile net income to net cash flow from operating activities: | ||
fill in the blank 12e1f1fab05a039_4 | ||
Changes in current operating assets and liabilities: | ||
fill in the blank 12e1f1fab05a039_6 | ||
fill in the blank 12e1f1fab05a039_8 | ||
fill in the blank 12e1f1fab05a039_10 | ||
fill in the blank 12e1f1fab05a039_12 | ||
fill in the blank 12e1f1fab05a039_14 | ||
Net cash flow from operating activities | $fill in the blank 12e1f1fab05a039_15 |
b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when .
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
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
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
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
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
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
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning