Problem 8-5: Centralia Stores Inc. had property, plant, and equipment, net of accumulated depreciation, of $4,459,000 and intangible assets, net of accumulated amortization, of $673,000 on December 31, 2016. The company’s 2016 statement of cash flows, prepared using the indirect method, included the following items: The Cash Flows from Operating Activities section included three additions to net income: Depreciation expense of $672,000 Amortization expense of $33,000 Loss on the sale of equipment of $35,000 The Cash Flows from Operating Activities section also included a subtraction from net income for the gain on the sale of copyright of $55,000.  The Cash Flows from Investing Activities section included outflows for the purchase of a building of $292,000 and $15,000 for the payment of legal fees to protect a patent from infringement.  The Cash Flows from Investing Activities section also included inflows from the sale of equipment of $315,000 and the sale of copyright of $75,000.…

Determining Net Cash Flow from Investing Activities Orlando Inc. reported the following information:   12/31/2019 12/31/2018 Furniture $46,000   $32,000   Accumulated depreciation 15,900   12,500   Investment (long-term) 38,000   50,000     In addition, Orlando sold furniture costing $8,000 with accumulated depreciation of $5,000 for $3,500. Orlando also reported a $3,000 gain on the sale of long-term investments. Required: Compute net cash flow from investing activities. Use a minus sign to indicate negative cash flows (outflows).

5 Rebecky's Flowers 4U, Inc., had free cash flows during 2021 of $41 million, NOPAT of $81 million, and depreciation of $19 million. Using this information, fill in the blanks on Rebecky's balance sheet below. (Enter your answers in millions of dollars.) Assets Current assets Cash and marketable securities Accounts receivable Inventory Total Fixed assets Gross plant and equipment Less: Depreciation Net plant and equipment Other long-term assets Total Total assets $ s 2021 $ s $ $ REBECKY'S FLOWERS 4U, INC. Balance Sheet as of December 31, 2021 and 2020 (in millions of dollars) 2020 32 $ 68 132 252 $ 510 S 89 421 S 60 481 733 $ $ 29 78 113 220 Liabilities and Equity Current liabilities. Accrued wages and taxes Accounts payable Notes payable Total Long-term debt 460 Stockholders' equity 70 390 60 Retained earnings 450 Total 670 Total liabilities and equity Preferred stock (5 million shares) Common stock and paid-in surplus (10 million shares) $ S 5 $ 2021 22 $ 95 5 $ 2020 20 232 257 S…

Computation of Net Cash Flows from Operating Activities Indirect Method   Dec. 31, 2011 Jan. 1, 2011 Income statement:     Net Income $385,000   Depreciation Expense 125,000   Amortization of Intangible Assets 40,000   Gain on Sale of Plant Assets 90,000   Loss on Sale of Investments 35,000   Balance sheet:     Accounts Receivable $335,000 $380,000 Inventory 503,000 575,000 Prepaid Expenses 22,000 10,000 Accounts Payable (to merchandise suppliers) 379,000 410,000 Accrued Expenses Payable 180,000 155,000 Required: Using this information, prepare a partial statement of cash flows for the year ended December 31, 2011, showing the computation of net cash flows from operating activities by the indirect method.

7.  Use the following information from Dubuque Company’s financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018:                                                                                           2018 Income Statement                          Balance Sheets  Sales                                                                                            $299,000 Cost of Goods Sold                                                                      (135,000) Operating Expenses, other than depreciation expense.               (27,000) Depreciation Expense                                                                   (17,000) Gain on Sale of Plant Assets                                                          16,500                                                                                                       ------------- Net Income…

On its January 1, 2016, balance sheet, Calvin Company reported equipment of $60,000 and accumulated depreciation of $20,000. During 2016, Calvin sold equipment with an original cost of $5,000. Selected information from Calvin's 2016 statement of cash flows follows: Net income $20,000 Depreciation expense on equipment 2,000 Gain on sale of equipment 600 Proceeds from sale of equipment 1,500 Purchase of equipment 18,000 ​ Required:Compute the amount of equipment and accumulated depreciation that should appear on Calvin's December 31, 2016, balance sheet.

REQUIRED Study the statement of cash flows of Mantis Limited for the year ended 31 December 2021 and answer the following questions: Calculate the following for the year ended 31 December 2021: Depreciation  Dividends paid  Of what significance is this statement of cash flows to the shareholders of Mantis Limited?  Comment on the following: Cash flows from operating activities (R181 800)  1.3.2. Increase in inventory (R808 000)                                                                           Increase in receivables (R606 000)  Interest paid (R80 800)  Cash flows from investing activities (R2 343 200)    INFORMATION     MANTIS LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021   R Cash flows from operating activities (181 800) Operating profit 979 700 Depreciation ? Profit before working capital changes ? Working capital changes (808 000) Increase in inventory (808 000) Increase in receivables…

Statement of Cash Flows—Indirect Method The following balances are available for Chrisman Company:    December 31   2017   2016 Cash $14,400   $18,000 Accounts receivable 36,000   27,000 Inventory 28,600   47,800 Prepaid rent 16,200   10,800 Land 135,000   135,000 Plant and equipment 720,000   540,000 Accumulated depreciation (117,000)   (54,000)     Totals $833,200   $724,600         Accounts payable $21,600   $18,000 Income taxes payable 5,400   9,000 Short-term notes payable 63,000   45,000 Bonds payable 135,000   180,000 Common stock 360,000   270,000 Retained earnings 248,200   202,600     Totals $833,200   $724,600 Bonds were retired during 2017 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. Depreciation expense for the year was $63,000. Net income was reported at $45,600. Required: 1.  Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities…

Computing the cash effect Rouse Exercise Equipment, Inc. reported the following financial statements for 2018: Requirements Compute the amount of Rouse Exercises acquisition of plant assets. Assume the acquisition was for cash. Rouse Exercise disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was $47,900. No cash was received upon disposal. Compute new borrowing or payment of long-term notes payable, with Rouse Exercise having only one long-term notes payable transaction during the year. Compute the issuance of common stock with Rouse Exercise having only one common stock transaction during the year. Compute the payment of cash dividends.