MANAGERIAL ACCOUNTING
16th Edition
ISBN: 9781260901320
Author: Garrison
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 14, Problem 2E
EXERCISE 14-2 Net Cash Provided by Operating Activities LO14-2
For the just completed year, Hanna Company had net income of $35,000. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows:
December 31
End of Year
Beginning of Year
Current assets:
| Cash and cash equivalents | $30,000 |
$40,000 |
| Accounts receivable | $125,000 |
$106,000 |
| Inventory | $213,000 |
$180,000 |
| Prepaid expenses | $6,000 |
$7,000 |
| Current liabilities: | ||
| Accounts payable | $210,000 |
$195,000 |
| Accrued liabilities | $4,000 |
$6,000 |
| Income taxes payable | $34,000 |
$30,000 |
The
Required:
Using the indirect method, determine the net cash provided by operating activities for the year.
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Exercise 16-20B (Algo) Direct: Cash flows from operating activities LO P5
The following income statement and additional year-end information is provided.
Sales
Cost of goods sold
Gross profit
Operating expenses
SONAD COMPANY
Income Statement
For Year Ended December 31
Salaries expense
Depreciation expense
Rent expense
Amortization expenses-Patents
Utilities expense
Gain on sale of equipment
Net income
Accounts receivable
Inventory
$ 256,601
44,952
50,571
5,619
20,603
Statement of Cash Flows (Partial)
Cash flows from operating activities
$ 1,873,000
917,770
955,230
378,346
576,884
7,492
$ 584,376
$ 32,350 increase Accounts payable
15,700 increase Salaries payable
Prepare the operating activities section of the statement of cash flows using the direct method.
Note: Amounts to be deducted should be indicated with a minus sign.
$ 14,450 decrease
2,750 decrease
18
Exercise 16-20B (Algo) Direct: Cash flows from operating activities LO P5
19
The following income statement and additional year-end information is provided.
SONAD COMPANY
Income Staterent
-
For Year Ended December 31
Sales
Cost of goods sold
Gross profit
Operating expenses
Salaries expense
Depreciation expense
Rent expense
Amortization expenses-Patents
Utilities expense
$ 342,226
$ 2,498,000
1,224,020
1,273,980
59,952
67,446
7,494
27,478
584,596
Gain on sale of equipment
Net income
769,384
9,992
$779,376
Accounts receivable $ 43,850 increase Accounts payable
Inventory
14,975 increase Salaries payable
$ 13,925 decrease
1,500 decrease
Prepare the operating activities section of the statement of cash flows using the direct method.
Note: Amounts to be deducted should be indicated with a minus sign.
Answer is not complete.
Statement of Cash Flows (Partial)
Cash flows from operating activities
Payments for inventory
Payments for rent
Payments for salaries
Receipts from customers
$
0
Chapter 14 Solutions
MANAGERIAL ACCOUNTING
Ch. 14.A - Prob. 1ECh. 14.A - EXERCISE 14A-2 Net Cash Provided by Operating...Ch. 14.A - Prob. 3ECh. 14.A - Prob. 4ECh. 14.A -
PROBLEM 14A-5 Prepare and Interpret a Statement...Ch. 14.A - Prob. 6PCh. 14.A - PROBLEM 14A-7 Prepare and Interpret a Statement of...Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - Prob. 3Q
Ch. 14 - Prob. 4QCh. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - Prob. 8QCh. 14 - Prob. 9QCh. 14 -
14-10 If the Accounts Receivable balance...Ch. 14 - Prob. 11QCh. 14 - Prob. 12QCh. 14 - Prob. 1F15Ch. 14 - Ravenna Company is a merchandiser that uses the...Ch. 14 - Prob. 3F15Ch. 14 - Prob. 4F15Ch. 14 - Prob. 5F15Ch. 14 - Prob. 6F15Ch. 14 - Ravenna Company is a merchandiser that uses the...Ch. 14 - Prob. 8F15Ch. 14 - Prob. 9F15Ch. 14 - Prob. 10F15Ch. 14 - Prob. 11F15Ch. 14 - Prob. 12F15Ch. 14 - Prob. 13F15Ch. 14 - Prob. 14F15Ch. 14 - Prob. 15F15Ch. 14 - Prob. 1ECh. 14 - EXERCISE 14-2 Net Cash Provided by Operating...Ch. 14 - Prob. 3ECh. 14 - Prob. 4ECh. 14 - Prob. 5ECh. 14 - Prob. 6ECh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Prob. 11PCh. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 14P
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