SERIES B PROBLEMS COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Kennington Company’s condensed income statement for the year ended December 31, 20-2, was as follows: Net sales $800,000 Cost of goods sold 475,000 Gross profit $325,000 Operating expenses 148,000 Income before taxes $177,000 Income tax expense 62,000 Net income $115,000 Additional information obtained from Kennington’s comparative balance sheet as of December 31, 20-2 and 20-1, was as follows: Required Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2.

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College Accounting, Chapters 1-27 ...

22nd Edition
James A. Heintz + 1 other
Publisher: Cengage Learning
ISBN: 9781305666160
BuyFind

College Accounting, Chapters 1-27 ...

22nd Edition
James A. Heintz + 1 other
Publisher: Cengage Learning
ISBN: 9781305666160

Solutions

Chapter
Section
Chapter 23, Problem 9SPB
Textbook Problem

SERIES B PROBLEMS

COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Kennington Company’s condensed income statement for the year ended December 31, 20-2, was as follows:

Net sales $800,000
Cost of goods sold 475,000
Gross profit $325,000
Operating expenses 148,000
Income before taxes $177,000
Income tax expense 62,000
Net income $115,000

Additional information obtained from Kennington’s comparative balance sheet as of December 31, 20-2 and 20-1, was as follows:

Chapter 23, Problem 9SPB, SERIES B PROBLEMS COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Kennington Companys condensed income

Required

Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2.

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Chapter 23 Solutions

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 23 - Please classify the following activities as...Ch. 23 - The following events took place during the year....Ch. 23 - Indicate whether the following items increase or...Ch. 23 - Describe how the following activities would be...Ch. 23 - Kip Company has the following accounts on its...Ch. 23 - Simons Used Furniture earned net income of 50,000...Ch. 23 - Brown Company signed a 500,000 mortgage to acquire...Ch. 23 - Brown Company also paid interest of 8,000 and...Ch. 23 - What is the primary purpose of the statement of...Ch. 23 - Name the four principal financial statements...Ch. 23 - What are the three categories of cash flows shown...Ch. 23 - Name the types of cash flows associated with...Ch. 23 - Name the types of cash flows associated with...Ch. 23 - Name the types of cash flows associated with...Ch. 23 - If a company pays cash dividends, where on the...Ch. 23 - Where is cash received for interest reported on...Ch. 23 - What information is needed to prepare a statement...Ch. 23 - Describe the direct method of reporting cash flows...Ch. 23 - Describe the indirect method of reporting cash...Ch. 23 - Under the indirect method of preparing a statement...Ch. 23 - Under the indirect method of preparing a statement...Ch. 23 - List the six steps to be followed when preparing a...Ch. 23 - Explain the procedure for verifying the accuracy...Ch. 23 - What are cash equivalents?Ch. 23 - Under the indirect method of preparing a statement...Ch. 23 - Under the indirect method of preparing a statement...Ch. 23 - Provide an example of a noncash investing and...Ch. 23 - List the two supplemental disclosures required...Ch. 23 - What is the most important value reported on the...Ch. 23 - SERIES A EXERCISES IDENTIFICATION OF OPERATING,...Ch. 23 - CHANGE IN CASH AND CASH EQUIVALENTS Olsen Companys...Ch. 23 - ADJUSTING NET INCOME FOR CHANGES IN CURRENT ASSETS...Ch. 23 - ADJUSTING NET INCOME FOR NONCASH EXPENSES After...Ch. 23 - GAINS AND LOSSES ON THE SALE OF LONG-TERM ASSETS...Ch. 23 - CASH FLOWS FROM INVESTING AND FINANCING ACTIVITIES...Ch. 23 - NONCASH INVESTING AND FINANCING ACTIVITIES Nortons...Ch. 23 - CASH PAID FOR INTEREST Ball Companys income...Ch. 23 - SERIES A PROBLEMS COMPUTE CASH PROVIDED BY...Ch. 23 - SERIES A PROBLEMS Series A Problems COMPUTE CASH...Ch. 23 - COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Horn...Ch. 23 - EXPANDED STATE MENT OF CASH FLOWS Financial...Ch. 23 - SERIES B EXERCISES IDENTIFICATION OF OPERATING,...Ch. 23 - CHANGE IN CASH AND CASH EQUIVALENTS Pike Companys...Ch. 23 - ADJUSTING NET INCOME FOR CHANGES IN CURRENT ASSETS...Ch. 23 - ADJUSTING NET INCOME FOR NONCASH EXPENSES After...Ch. 23 - GAINS AND LOSSES ON THE SALE OF LONG-TERM ASSETS...Ch. 23 - CASH FLOWS FROM INVESTING AND FINANCING ACTIVITIES...Ch. 23 - NONCASH INVESTING AND FINANCING ACTIVITIES Murrys...Ch. 23 - CASH PAID FOR INTEREST Mulligan Companys income...Ch. 23 - SERIES B PROBLEMS COMPUTE CASH PROVIDED BY...Ch. 23 - SERIES B PROBLEMS COMPUTE CASH PROVIDED BY...Ch. 23 - COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES...Ch. 23 - EXPANDED STATEMENT OF CASH FLOWS Financial...Ch. 23 - MANAGING YOUR WRITING Direct Method A friend of...Ch. 23 - MASTERY PROBLEM Financial statements for...Ch. 23 - CHALLENGE PROBLEM The long-term liabilities...

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