
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The operating expenses and taxes (including $ 80,000 of |
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- Rogers Company reported net income of $47,097 for the year. During the year, accounts receivable increased by $5,480, accounts payable decreased by $4,933 and depreciation expense of $76,852 was recorded. Net cash flows from operating activities for the year is a. $124,496 b. $113,536 c. $47,097 d. $134,362arrow_forwardHi-Tech, Inc., reports net income of $70 million. Included in that number are depreciation expense of $6 million and a loss on the sale of equipment of $2 million. Records reveal increases in accounts receivable, accounts payable, and inventory of $3 million, $4 million, and $5 million, respectively. What are Hi-Tech’s net cash flows from operating activities?arrow_forwardMetlock, Inc.'s net income for the current year was $432000. Depreciation was $56000. Accounts receivable and inventories decreased by $18000 and $29000, respectively. Prepaid expenses and salaries payable increased, respectively, by $2000 and $14000. Equipment was sold at a gain of $7800. How much cash was provided by operating activities?arrow_forward
- Vaugh Inc. reported net income of $3.10 million in 2022.Depreciation for the year was $198, 400, accounts receivable decreased $434, 000,and accounts payable decreased $347, 200 .Compute net cash provided by operating activities using the indirect method.arrow_forwardLaser World reports net income of $650,000. Depreciation expense is $50,000, accounts receivable increases $11,000, and accounts payable decreases $30,000. Calculate net cash flows from operating activities using the indirect method.arrow_forwardUsing the Exhibit below, assume that the balance of Accounts Payable was $60,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Payable is $65,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts payable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of…arrow_forward
- Use the following information to compute net operating cash flow for a firm: Net income for the year is $43,900 Account receivable increased by $10,420 Inventory increased by $1,875 Depreciation expense for the year is $8,000 Account payable decreased by $5,782 Other current liabilities increased by $3,500 Taxes payable decreased by $1,970 Old equipment with a book value of $2,200 was sold for $1,325 Old appliances were sold for $24,000 at a gain of $4,800 A new machine was purchased for $10,000 1,000 shares of common stock were issued at par value of $10 each and sold at pay (for $10 each) Declared and paid dividends of $5,000 Reimbursed $7,000 of an outstanding loan’s capitalarrow_forwardChris’s Outdoor Furniture, Incorporated, has net cash flows from operating activities for the last year of $310 million. The income statement shows that net income is $285 million and depreciation expense is $41 million. During the year, the change in inventory on the balance sheet was $31 million, change in accrued wages and taxes was $11 million, and change in accounts payable was $22 million. At the beginning of the year, the balance of accounts receivable was $41 million. Calculate the end-of-year balance for accounts receivable.arrow_forwardA company reports net income of $152,000. Included in net income is a gain on the sale of land of $13,500. A comparison of this year’s and last year’s balance sheets reveals an increase in accounts receivable of $22,000, an increase in inventory of $13,500, and a decrease in accounts payable of $42,000.Required:Prepare the operating activities section of the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)arrow_forward
- Sectors, Inc., has an EBIT of $7,221,643 and interest expense of $611,800. Its depreciation for the year is $1,434,500. What is its cash coverage ratio?arrow_forwardFilton Company reported net income of $44,204 for the year. During the year, accounts receivable increased by $7,925, accounts payable decreased by $4,003 and depreciation expense of $46,347 was recorded. Find the net cash provided by operating activities for the year. Select the correct answer. $44,204 $78,623 $102,479 $94,473arrow_forward
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