MANAGERIAL ACCOUNTING (LL)-W/ACCESS
16th Edition
ISBN: 9781260705898
Author: Garrison
Publisher: MCG
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Chapter 14.A, Problem 2E
EXERCISE 14A-2 Net Cash Provided by Operating Activities LO14-4
Wiley Company’s income statement for Year 2 follows:
The company’s selling and administrative expense for Year 2 includes $7,500 of
Required:
- Using the direct method, convert the company’s income statement to a cash basis.
- Assume that during Year 2 Wiley had a $9,000 gain on sale of investments and a $3,000 loss on the sale of equipment. Explain how these two transactions would affect your computations in (1) above.
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Exercise 16 - 5 (Algo) Indirect: Cash flows from operating activities LO P2SFitz Company
reports the following information.Selected Annual Income Statement DataNet
incomeDepreciation expenseAmortization expenseGain on sale of plant assetsSelected Year -
End Balance Sheet Data$ 376,000 Accounts receivable decrease 44,200 Inventory decrease
7,300 Prepaid expenses increase6, 100 Accounts payable decreaseSalaries payable increase$
122, 40042, 5005, 8008, 8002, 400Use the indirect method to prepare the operating activities
section of its statement of cash flows for the year ended
Exercise 12-5 (Algo) Indirect: Cash flows from operating activities LO P2
Fitz Company reports the following information.
Selected Annual Income Statement Data
Net income
Depreciation expense
Amortization expense
Gain on sale of plant assets
Selected Year-End Balance Sheet Data
$ 412,000 Accounts receivable decrease
45,800 Inventory decrease i
Changes in current operating assets and liabilities
7,400 Prepaid expenses increase
7,000 Accounts payable decrease
Salaries payable increase
Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31.
(Amounts to be deducted should be indicated with a minus sign.)
Statement of Cash Flows (partial)
Cash flows from operating activities
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
$ 46,900
43,000
5,000
8,800
1,300
Exercise 12-5 (Algo) Indirect: Cash flows from operating activities LO P2
Fitz Company reports the following information.
Selected Annual Income Statement Data
Selected Year-End Balance Sheet Data
$ 412,000 Accounts receivable decrease
49,600 Inventory decrease
8,800 Prepaid expenses increase
6,600 Accounts payable decrease
Salaries payable increase
Net income
$ 81,100
Depreciation expense
Amortization expense
Gain on sale of plant assets
44, 000
5,600
9,000
1,300
Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31.
(Amounts to be deducted should be indicated with a minus sign.)
Statement of Cash Flows (partial)
Cash flows from operating activities
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Changes in current operating assets and liabilities
$
Chapter 14 Solutions
MANAGERIAL ACCOUNTING (LL)-W/ACCESS
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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