XYZ INC. REPORTED NET INCOME OF $10,000 IN 2020. DEPRECIATION FOR THE YEAR WAS $1,000, ACCOUNTS RECEIVABLE DECREASED BY $3,000 AND ACCOUNTS PAYABLE DECREASED BY $6,000. COMPUTE NET CASH PROVIDED BY OPERATING ACTIVITIES USING THE INDIRECT APPROACH. O $10,000 $0 $8,000 $6,000

XYZ INC. REPORTED NET INCOME OF $10,000 IN 2020. DEPRECIATION FOR THE YEAR WAS $1,000, ACCOUNTS RECEIVABLE DECREASED BY $3,000 AND ACCOUNTS PAYABLE DECREASED BY $6,000. COMPUTE NET CASH PROVIDED BY OPERATING ACTIVITIES USING THE INDIRECT APPROACH. O $10,000 $0 $8,000 $6,000

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

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 5RE: In the current year, Harrisburg Corporation had net income of 35,000, a 9,000 decrease in accounts...

See similar textbooks

Related questions

Q: The XYZ Company had the following income statement on 31.12.2020 Deprecation 15000 Net income 110000…

A: Deprecation = 15000 Net income =110000 OMR Decreased during 2020: Accounts receivable = 24000…

Q: Assume that during 2020, Cypress Semiconductor Corporation reported net cash provided by operating…

A: Free cash flow:Free cash flow describes the net cash provided from operating activities after making…

Q: During 2020, Diaz Corporation had net income of $41,000. Included on its income statement were…

A: Cash flow from operating activities is the amount of cash generated with the regular operating…

Q: ABC Company had the following income statement on 31.12.2020 Depreciation OMR 12000 Net Profit OMR…

A: Introduction: Statement of cash flows: All cash in and out flows are shown in cash flows statement.…

Q: Kingbird, Inc. reported net income of $1.55 million in 2022. Depreciation for the year was $248.000,…

A: >Statement of Cash flows is one of the financial statements, and is prepared for a particular…

Q: The XYZ Company had the following income statement on 31.12.2020 Deprecation 15000 Net income 95000…

A: Net income = 95000 Depreciation = 15000 Decrease in Accounts receivable = 18000 Decrease in…

Q: Suppose Siam Traders has the following results related to cash flows for 2019: Net Income of…

A: Net cash flows = Cash flow from operating activities + cash flows from investment activities + cash…

Q: Broussard Company reported net income of $3.5 million in 2020. Depreciation for the year was…

A: A Cash flow statement is a financial statement that provides the summarised information regarding…

Q: Vaughn Company completed its first year of operations on December 31, 2022. Its initial income…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Blossom Company reported net income of $192,700 for 2022. Blossom also reported depreciation expense…

A: The cash flow statement is an essential part of the financial statements of the organization. It is…

Q: Sheffield Corp. reported net income of $193,100 for 2019. Sheffield also reported depreciation…

A: Given the following information: Net Income: $193,100 Depreciation expense: $45,100 Loss on…

Q: 2019. It älšo Zen Corp in the business of wires and it has reported net income of RM225,000 reported…

A: The cash from operations means the cash provided by the operational activities of the company.…

Q: Jubilant Ind has reported net income of P176,600 for 2019. It also reported depreciation expense of…

A: Operating activities forms part of cash flow statements and it forms all the activities related with…

Q: Rexon Corp in the business of wires and it has reported net income of RM225,000 for 2019. It also…

A: Cash flow statement forms part of financial statements and used to find the amount of cash earned…

Q: Maverick Ind was manufacturing bottles and it has reported net income of P425,000 for 2019. It also…

A: Cash flow statement forms part of financial statements. It was used to find the cash earned and…

Q: Sunland Company had net income of $854400 for the year ending 12/31/2022. Depreciation expense for…

A: Net Income = $854400 Depreciation expense = $105600 Increase in accounts receivable = $57600…

Q: Salvador, Inc. reported a net income of $2.5 million in 2008. Depreciation for the year was…

A: Statement of cash flow: It refers to a financial statement that shows all the cash payments and…

Q: Duolever reported net income of $ 83,000 for 2020. Included in the income statement were…

A: Net Cash provided by operating activities means cash flow generated by operational activities. The…

Q: Wise Photography reported net income of $115,600 for 2020. Included in the income statement were…

A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

Q: The XYZ Company had the following income statement on 31.12.2020 Deprecation 5000 Net income 110000…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: The XYZ Company had the following income statement on 31.12.2020 Deprecation 12000 Net income 85000…

A: Cash flows from operating activities is an important section in Cash Flow statement which shows all…

Q: Khareef Salalah Company reported the following information for the year 2020: Net income RO 24,600;…

A: Cash flow statement includes: Cash flows from operating activities Cash flows from investing…

Q: Cadilo corp has reported net income of P186,600 for 2020. The corp also reported depreciation…

A: Cash flow statement is an financial statement used by the organisation to find the cash earned and…

Q: Pina colada corp. Reported net income of $190,400 for 2022. Pina colada also reported depreciation…

A: The cash flow statement is an essential part of the financial statements of the organization. It is…

Q: Dicksen Company’s income statement for the year ended December 31, 2022 reported profit of P360,000.…

A: Net cash provided by operating activities means net cash inflow from normal activities of an entity.…

Q: Current Attempt in Progress During 2020 the Cullumber Company had a net income of $85200. In…

Q: Crane Company reported net income of $148,500. For 2020, depreciation was $45,100, and the company…

A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…

Q: Windsor, Inc. reported net income of $76500 for the year 2022. During 2022, accounts receivable…

A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

Q: Use indirect method. Indus industries was manufacturing steel rods and it has reported net income of…

A: Cash flow from operating activities records the flow of cash from the regular business activities .…

Q: Blossom Company reported net income of $1.75 million in 2022. Depreciation for the year was…

A: In the indirect Approach of the Cash Flow Statement, we use the Net Income to Calculate the Net Cash…

Q: Sheridan Company reported net income of $0.50 million in 2022. Depreciation for the year was…

A: Formulas:

Q: Pronghorn Inc. Cash Flow Statement For the Year Ended on 31 December 2020 Cash Flow from Operating…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: Calculate cash flows from operating activities Select one:

A: Answer: Cash flow from operating activites cosnsists of cash flows from a transaction that affects a…

Q: SOL Company reported net income for 2016 in the amount of $200,000. The company’s financial…

A: Definition: Statement of cash flows: This statement reports all the cash transactions which are…

Q: Wildhorse Co. reported net income of $176,240 for 2022. Wildhorse Co. also reported depreciation…

A: Cash flow activities are divided into three types: 1. Operating activities 2.Investing activities…

Q: Oriole, Inc. reported net income of $2.60 million in 2022. Depreciation for the year was $166,400,…

A: The cash flow from operating activities includes the cash flow from day to day transactions of the…

Q: The XYZ Company had the following income statement on 31.12.2020 Deprecation 5000 Net income 110000…

A: Operating Cash Flow = Operating Income + Depreciation – Taxes + Change in Working Capital.

Q: Blossom Company reported net income of $148,500. For 2022, depreciation was $45,100, and the company…

A: Operating activities is one of the important section of cash flow statement which shows all cash…

Q: Pina Colada Corp. reported net income of $351000 for the year. During the year, account receivable…

A: As per the indirect method, the cash flows from OA is determined after adjusting the net income by…

Q: The BCD Company had the following income statement on 31.12.2020 Deprecation 10000 Net income 190000…

A: Cash flow statement: It is a financial statement that record the cash related transactions to…

Q: create a statement of cash flows for 2018 with amounts in thousands.

A: It is pertinent to note that cash flow statement reports the entities ability to generate cash . It…

Q: "Net cash flow from operating activities for 2020 for Jap Company was P300,000. The following items…

A: Net Income for 2020 = Net cash flow from operating activities - Depreciation and Amortization +…

Q: Cheyenne Corp. reported net income of $79200 for the year 2022. During 2022, accounts receivable…

A: Cash flows from operating activities evaluate the Cash Inflow and Cash Outflow from the daily…

Q: Ashford's Company has an accrual basis net income of $270,000 in 2019 and the following related…

A: Cash flow from operating activities: This section of cash flow statement provides information…

Q: The XYZ Company had the following income statement on 31.12.2020 Deprecation 12000 Net income 85000…

A: Flow of cash from operating activities- It is flow of that amount of cash which is received and paid…

Q: Marvin Inc. had net income of $195,000 in 2020. Depreciation expense for the year is $50,000. During…

A: Cash flows from operating activities shows all cash inflows and cash outflows related to operations…

Q: Blossom Company reported net income of $1.75 million in 2022. Depreciation for the year was…

Q: Blossom Company reported net income of $173,510 for 2022. Blossom Company also reported depreciation…

A: Please see the next step for the solution

Q: Marigold Corp. reported net income of $192,120 for 2022. Marigold Corp. also reported depreciation…

A: The cash flow statement is helpful for the stakeholders as they can identify the organization's…

Question

XYZ INC. REPORTED NET INCOME OF $10,000 IN 2020. DEPRECIATION FOR
THE YEAR WAS $1,000, ACCOUNTS RECEIVABLE DECREASED BY $3,000 AND
ACCOUNTS PAYABLE DECREASED BY $6,000. COMPUTE NET CASH PROVIDED
BY OPERATING ACTIVITIES USING THE INDIRECT APPROACH.
O $10,000
$0
$8,000
$6,000

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!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

Determining Cash Flows from Investing Activities Burns Companys 2019 and 2018 balance sheets presented the following data for equipment: During 2019, equipment costing $41,000 with accumulated depreciation of $36,700 was sold for cash, producing a $3,200 gain. Required: 1. Calculate the amount of depreciation expense for 2019. 2. Calculate the amount of cash spent for equipment during 2019. 3. Calculate the amount that should be included as a cash inflow from the disposal of equipment.
In the current year, Harrisburg Corporation had net income of 35,000, a 9,000 decrease in accounts receivable, a 7,000 increase in inventory, an 8,000 increase in salaries payable, a 13,000 decrease in accounts payable, and 10,000 in depreciation expense. Using the indirect method, prepare the operating activities section of its statement of cash flows based on this information.
Partially Completed Spreadsheet Hanks Company has prepared the following changes in account balances for the spreadsheet to support its 2019 statement of cash flows: Additional information: The net income was 1,300. Depreciation expense was 350, and patent amortization expense was 100. At the end of 2019, long-term investments were purchased at a cost of 1,550. Land that cost 700 was sold for 900. On December 31, 2019, bonds payable with a face value of 2,000 were issued for equipment valued at 2,300. Two hundred shares of common stock were issued at 7 per share. Forty shares of common stock were issued as a small stock dividend, the relevant market price being 5 per share. Cash dividends declared and paid totaled 600. Required: On the basis of the preceding information, complete the spreadsheet.
Selected information from Brook Corporations accounting records and financial statements for 2019 follows: On the statement of cash flows for the year ended December 31, 2019, Brook should disclose a net increase in cash in the amount of: a. 1,700,000 b. 2,400,000 c. 3,700,000 d. 4,200,000