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Cash flows from operating activities—direct method The cash flows from operating activities arc reported by the direct method on the statement of cash flows. Determine the following: A. If sales for the current year were $753,500 and accounts receivable decreased by $48,400 during the year, what was the amount of cash received from customers? B. If income tax expense for the current year was $50,600 and income tax payable decreased by $5,500 during the year, what was the amount of cash payments for income taxes? C. Briefly explain why the cash received from customers in (A) is different than sales

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Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285866307
BuyFind

Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285866307

Solutions

Chapter
Section
Chapter 14, Problem 14.19EX
Textbook Problem

Cash flows from operating activities—direct method

The cash flows from operating activities arc reported by the direct method on the statement of cash flows. Determine the following:

  1. A. If sales for the current year were $753,500 and accounts receivable decreased by $48,400 during the year, what was the amount of cash received from customers?
  2. B. If income tax expense for the current year was $50,600 and income tax payable decreased by $5,500 during the year, what was the amount of cash payments for income taxes?
  3. C. Briefly explain why the cash received from customers in (A) is different than sales

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Chapter 14 Solutions

Financial & Managerial Accounting
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Ch. 14 - Classifying cash flows Identify whether each of...Ch. 14 - Classifying cash flows Identify whether each of...Ch. 14 - Adjustments to net incomeindirect method Pearl...Ch. 14 - Adjustments to net incomeindirect method Ya Wen...Ch. 14 - Changes in current operating assets and...Ch. 14 - Changes in current operating assets and...Ch. 14 - Cash flows from operating activitiesindirect...Ch. 14 - Cash flows from operating activitiesindirect...Ch. 14 - Land transactions on the statement of cash flows...Ch. 14 - Land transactions on the statement of cash flows...Ch. 14 - Cash received from customersdirect method Sales...Ch. 14 - Cash received from customersdirect method Sales...Ch. 14 - Cash payments for merchandisedirect method The...Ch. 14 - Cash payments for merchandisedirect method The...Ch. 14 - Free cash flow McMahon Inc. reported the following...Ch. 14 - Free cash flow Dillin Inc. reported the following...Ch. 14 - Cash flows from operating activitiesnet loss...Ch. 14 - Effect of transactions on cash flows State the...Ch. 14 - Classifying cash flows Identify the type of cash...Ch. 14 - Cash flows from operating activitiesindirect...Ch. 14 - Cash flows from operating activitiesindirect...Ch. 14 - Cash flows from operating activitiesindirect...Ch. 14 - Cash flows from operating activitiesindirect...Ch. 14 - Determining cash payments to stockholders The...Ch. 14 - Reporting changes in equipment on statement of...Ch. 14 - Reporting changes in equipment on statement of...Ch. 14 - Reporting land transactions on statement of cash...Ch. 14 - Reporting stockholders' equity items on statement...Ch. 14 - Reporting land acquisition for cash and mortgage...Ch. 14 - Reporting issuance and retirement of long-term...Ch. 14 - Determining net income from net cash flow from...Ch. 14 - Cash flows from operating activitiesindirect...Ch. 14 - Statement of cash flowsindirect method The...Ch. 14 - Statement of cash flowsindirect method List the...Ch. 14 - Cash flows from operating activitiesdirect method...Ch. 14 - Cash paid for merchandise purchases The cost of...Ch. 14 - Determining selected amounts for cash flows from...Ch. 14 - Cash flows from operating activities direct method...Ch. 14 - Cash flows from operating activitiesdirect method...Ch. 14 - Free cash flow Sweeter Enterprises Inc. has cash...Ch. 14 - Free cash flow The financial statements for Nike,...Ch. 14 - Free cash flow Lovato Motors Inc. has cash flows...Ch. 14 - Statement of cash flowsindirect method The...Ch. 14 - Statement of cash flowsindirect method The...Ch. 14 - Statement of cash flowsindirect method The...Ch. 14 - Statement of cash flowsdirect method The...Ch. 14 - Statement of cash flowsdirect method applied to PR...Ch. 14 - Statement of cash flowsindirect method The...Ch. 14 - Statement of cash flowsindirect method The...Ch. 14 - Statement of cash flowsindirect method The...Ch. 14 - Statement of cash flowsdirect method The...Ch. 14 - Statement of cash flowsdirect method applied to PR...Ch. 14 - Ethics and professional conduct in business Lucas...Ch. 14 - Using the statement of cash flows You are...Ch. 14 - Analysis of statement of cash flows Dillip Lachgar...Ch. 14 - Analysis of cash flow from operations The...

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