Intermediate Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (2nd Edition)
2nd Edition
ISBN: 9780134833101
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 6, Problem 6.15E
To determine
Net cash flow from operating activities under the indirect reporting format.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Using the financial statements and additional information below, prepare a cash flow statement for Papa Ltd for the year ended 31st December 2018 using the indirect method of calculating operating cash flow and write a brief comment on the cash flow for the period.
Papa Ltd
Statement of Profit or Loss Account for the year ended 31st December 2018
GHC
Revenue
540,000
Cost of sales
(155,000)
Gross profit
385,000
Investment income – interest received
15,000
Loss on disposal of equipment
(18,000)
Depreciation
(94,000)
Administrative and selling expenses
(25,000)
Operating profit before interest
263,000
Interest expense
(10,000)
Profit before taxation
253,000
Taxation
(56,000)
Profit after tax
197,000
Statement of financial position as at 31st December
2018
2017
GHC
GHC
Non-current assets
Vehicle at cost
180,000
150,000
Accumulated depreciation
(137,000)…
d. Compute ROA.
e. Compute profit margin (PM).
f. Compute asset turnover (AT).
Notes:
Round ROA and PM to one decimal place (ex: 10.5%)
Round Asset turnover to two decimal places (0.33)
ROA
PM
AT
% *
% *
X
The following information pertains to Peak Heights Company:
Income Statement for Current Year
Sales
$ 85,200
Expenses
Cost of goods sold
Depreciation expense
Salaries expense
$51,875
7,400
11,800
71,075
$ 14,125
Net income
Prior
Partial Balance Sheet
Accounts receivable
Inventory
Salaries payable
Current
year
$10,900 S 14,200
13,800
1,580
year
8,600
970
Required:
Present the operating activities section of the statement of cash fl
outflows as negative amounts.)
Chapter 6 Solutions
Intermediate Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (2nd Edition)
Ch. 6 - What are the limitations of the balance sheet?Ch. 6 - What does a firms liquidity measure?Ch. 6 - Prob. 6.3QCh. 6 - What are the four major components of stockholders...Ch. 6 - Prob. 6.5QCh. 6 - Prob. 6.6QCh. 6 - Where is accumulated other comprehensive income...Ch. 6 - Prob. 6.8QCh. 6 - Prob. 6.9QCh. 6 - What are the two main balance sheet formats?...
Ch. 6 - Prob. 6.11QCh. 6 - Prob. 6.12QCh. 6 - What are the two formatting options for reporting...Ch. 6 - What is financial statement articulation?Ch. 6 - How is net income closed? Is the closing entry the...Ch. 6 - Why are the notes to the financial statements an...Ch. 6 - Prob. 6.17QCh. 6 - What is a subsequent event?Ch. 6 - What is a subsequent event under IFRS?Ch. 6 - How do firms report a material subsequent event on...Ch. 6 - Prob. 6.21QCh. 6 - Over what period must management assess the...Ch. 6 - Prob. 6.23QCh. 6 - Prob. 6.24QCh. 6 - Prob. 6.25QCh. 6 - Prob. 6.26QCh. 6 - Prob. 6.27QCh. 6 - Prob. 6.28QCh. 6 - Prob. 6.29QCh. 6 - Prob. 6.30QCh. 6 - Prob. 6.31QCh. 6 - Who is responsible for designing and implementing...Ch. 6 - Prob. 6.33QCh. 6 - What are the two key measures of liquidity?...Ch. 6 - What does the debt-to-equity ratio measure for a...Ch. 6 - What does a high current ratio indicate about a...Ch. 6 - Is it useful to compare working capital among...Ch. 6 - Sykes Corporations comparative balance sheets at...Ch. 6 - During Year 1, Brianna Company had the following...Ch. 6 - Which of the following items would not be included...Ch. 6 - Kong Co. purchased a three-month U.S. Treasury...Ch. 6 - Prob. 6.5MCCh. 6 - Prob. 6.6MCCh. 6 - In its year-end income statement, Black Knights...Ch. 6 - On is current year income statement, Vegas...Ch. 6 - Advantages of the Statement of Financial Position....Ch. 6 - Prob. 6.2BECh. 6 - Prob. 6.3BECh. 6 - Account Classification: Current and Noncurrent...Ch. 6 - Classified Balance Sheet. Armstrong Associates...Ch. 6 - Classified Balance Sheet, Report Format. Martell...Ch. 6 - Classified Balance Sheet, Account Format. Using...Ch. 6 - Classified Balance Sheet. Report Format.Bowe...Ch. 6 - Classified Balance Sheet, Account Format. Using...Ch. 6 - Classification as Operating. Investing, or...Ch. 6 - Prob. 6.11BECh. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating. Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Prob. 6.18BECh. 6 - Statement of Cash Flows, Indirect Method. Identity...Ch. 6 - Financial Statement Articulation. Complete the...Ch. 6 - Prob. 6.21BECh. 6 - Prob. 6.22BECh. 6 - Prob. 6.23BECh. 6 - Prob. 6.24BECh. 6 - Statement of Cash Flows, Indirect Method. Tennis...Ch. 6 - Statement of Cash Flows, Direct Method. Use the...Ch. 6 - Prob. 6.27BECh. 6 - Ratio Analyses. Green Grasshopper Incorporated is...Ch. 6 - Classification of Assets and Liabilities. Darin...Ch. 6 - Prob. 6.2ECh. 6 - Prob. 6.3ECh. 6 - Prob. 6.4ECh. 6 - Prepare Balance Sheet. Blackburn Building Products...Ch. 6 - Prepare Balance Sheet. Lake Company provided the...Ch. 6 - Statement of Cash Flows, Indirect Method. Tulsa...Ch. 6 - Prob. 6.8ECh. 6 - Prob. 6.9ECh. 6 - Prob. 6.10ECh. 6 - Prob. 6.11ECh. 6 - Financial Statement Articulation. Use the...Ch. 6 - Prob. 6.13ECh. 6 - Prob. 6.14ECh. 6 - Prob. 6.15ECh. 6 - Prob. 6.16ECh. 6 - Prob. 6.17ECh. 6 - Solvency Analyses. The following items are from...Ch. 6 - Prepare Balance Sheet. Larkin Corporation provided...Ch. 6 - Prob. 6.2PCh. 6 - Prepare Balance Sheet. Jennings Incorporated...Ch. 6 - Prepare Stockholders Equity Section of Balance...Ch. 6 - Prepare Stockholders Equity Section of Balance...Ch. 6 - Prepare Classified Balance Sheet.Centre Company...Ch. 6 - Prepare a classified balance sheet at December 31...Ch. 6 - Contents of the Annual Report, Financial Statement...Ch. 6 - Statement of Cash Flows, Operating Activities...Ch. 6 - Statement of Cash Flows, Operating Activities...Ch. 6 - Statement of Cash Flows, Direct Method. Prepare...Ch. 6 - Statement of Cash Flows, Indirect Method. Prepare...Ch. 6 - Prob. 6.13PCh. 6 - Statement of Cash Flows, Operating Activities...Ch. 6 - Statement of Cash Flows, Direct Method. Prepare...Ch. 6 - Prob. 6.16PCh. 6 - Prob. 1JCCh. 6 - UseFoot Locker. Inc.sbalance sheet and other...Ch. 6 - Prob. 1SSCCh. 6 - Surfing the Standards Case 2: True and Fair...Ch. 6 - Basis for Conclusions Cases Basis for Conclusions...Ch. 6 - Prob. 2BCC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The following information pertains to Peak Heights Company: Income Statement for Current Year Sales Expenses Cost of goods sold $ 51,775 Depreciation 6,800 11,900 expense Salaries expense Net income Partial Balance Sheet Accounts receivable Inventory Salaries payable $ 86,900 70,475 $16,425 Cash flows from operating activities: Current year $ 11,400 12,800 1,720 Required: Present the operating activities section of the statement of cash flows for Peak Heights Company using the indirect method. Note: List cash outflows as negative amounts. PEAK HEIGHTS COMPANY Statement of Cash Flows (Partial) Prior year $14,500 8,600 840 $ 0arrow_forwardBurch Company Income Statement For the year ended December 31 Sales $250,000 Cost of goods sold (160,000) Depreciation expense (26,400) Other expenses (35,000) Income tax expense (12,000) Net income $16,600 Required: Compute the net cash flows from operating activities using the indirect method. 33,200 Xarrow_forwardDetermining Selected Amounts for Cash Flows from Operating Activities-Direct Method Selected data taken from the accounting records of Ginis Inc. for the current year ended December 31 are as follows: Accrued expenses payable (operating expenses) Accounts payable (merchandise creditors) Inventories Balance, December 31 $5,040 36,670 67,570 Balance, January 1 $5,510 40,470 73,450 During the current year, the cost of merchandise sold was $372,200, and the operating expenses other than depreciation were $69,800. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows. a. Determine the amount reported on the statement of cash flows for cash payments for merchandise. b. Determine the amount reported on the statement of cash flows for cash payments for operating expenses.arrow_forward
- Sales Expenses Income Statement for Current Year Cost of goods sold Depreciation expense Salaries expense Net income Partial Balance Sheet Accounts receivable Inventory Salaries payable $ 51,875 7,900 10,500 $ 85,800 Cash flows from operating activities: 70,275 $ 15,525 Current year PEAK HEIGHTS COMPANY Statement of Cash Flows (Partial) $ 10,100 12, 200 1,640 Required: Present the operating activities section of the statement of cash flows for Peak Heights Company using the indirect method. Note: List cash outflows as negative amounts. Prior year $ 14,800 9,700 890 $arrow_forwardThe 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 $21,850 increase 20,850 increase $232,626 40,752 45,846 Cash flows from operating activities Statement of Cash Flows (partial) 5,094 18,678 $1,698,000 832,020 865,980 342,996 522,984 6,792 $529,776 Accounts payable Salaries payable Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) $15,100 decrease 5,350 decreasearrow_forwardThe following information pertains to Peak Heights Company: Income Statement for Current Year Sales $ 85,300 Expenses Cost of goods $ sold 51,675 Depreciation 8,100 expense Salaries 12,000 71,775 expense Net income $ 13,525 Partial Balance Prior Sheet Current year year Accounts $ $ 9,900 receivable 14,400 Inventory 13,700 8,300 Salaries payable 1,550 850 Required: Present the operating activities section of the statement of cash flows for Peak Heights Company using the indirect method. Note: List cash outflows as negative amounts. PEAK HEIGHTS COMPANY Statement of Cash Flows (Partial) Cash flows from operating activities: Accounts receivable increasearrow_forward
- Given is data for General Mills Inc. for its fiscal year ended May 27, 2018 ($ millions). Cost of goods sold (COGS) = $14,438.1 Cash from operating activities = $3,977.4 Cash from investing activities = (12,159.6) Noncash assets, end of year = 42,315.0 Cash, end of year = 558.6 Cash from financing activities = 7,668.2 Income tax expense = 80.2 Total assets, beginning of year = 30,537.6 Revenue = 22,036.6 Total liabilities, end of year = 33,784.2 Total expenses, other than COGS = 4,490 Stockholders' equity, end of year = 9,089.4 Prepare Income statement, Cash flow statement and Balance sheet for the year 2008. Do not use negative sign, use brackets. Note : Answers for tally- For the year ended May 27, 2018 Answer Revenues Answer 22,036.6 Answer Cost of goods sold Answer 14,438.1 Answer Gross profit Answer 7,958.5 Answer Expenses Answer 4,490.1 Answer Net income Answer 3,108.4 Answer Total assets Answer 0 Answer Total liabilities and equity Answer 0 b. Prepare the balance…arrow_forwardFitz 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 $ 421,000 Accounts receivable decrease 48,600 Inventory decrease 7,300 Prepaid expenses increase 7,900 Accounts payable decrease Salaries payable increase $ 133,100 44,500 7,000 10,300 1,800 Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. Note: 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 liabilitiesarrow_forwardRequired Information [The following information applies to the questions displayed below.] Portions of the financial statements for Hawkeye Company are provided below. HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2824 ($ in millions) Sales Cost of goods sold Gross margin Operating expenses: Salaries Depreciation Loss on sale of land Total operating expenses Operating income Other incone (expense): Gain on sale of cash equivalents Interest expense Income before tax Income tax expense Net income HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2824 and 2023 ($ in millions) Year Cash Accounts receivable Inventory Accounts payable Salaries payable Interest payable Income tax payable Cash Flows from Operating Activities Adjustments for noncash effects: Changes in operating assets and Mablities: 2824 Net cash flows from operating activities $ 246 388 894 227 187 69 97 $ 225 183 14 S 2023 $217 487 867 268 282 57 118 $830 315 515 0 422 93…arrow_forward
- Statement of Cash Flows (Indirect Method)The Huber Company's income statement and comparative balance sheets as of December 31 of the current and previous year follow: HUBER COMPANYIncome StatementFor the Year Ended December 31 Sales Revenue $1,120,000 Cost of Goods Sold $742,000 Wages and Other Operating Expenses 240,800 Depreciation Expense 37,800 Patent Amortization Expense 8,400 Interest Expense 25,200 Income Tax Expense 35,000 Gain on exchange of land for patent (50,400) 1,038,800 Net Income $81,200 HUBER COMPANYBalance Sheets Dec. 31, Current Year Dec. 31, Previous Year Assets Cash $47,600 $22,400 Accounts Receivable 89,600 68,600 Inventory 119,000 89,600 Land 163,800 224,000 Building and Equipment 617,400 505,400 Accumulated Depreciation (168,000) (140,000) Patent 102,200 - Total Assets $694,000 $550,000 Liabilities and Stockholders' Equity Accounts Payable $50,400 $36,400 Interest Payable…arrow_forwardFitz Company reports the following information. Use the indirect method to prepare the operating activi- ties section of its statement of cash flows for the year ended December 31. Selected Annual Income Statement Data Net income .. Depreciation expense Amortization expense.. Gain on sale of plant assets. Selected Year-End Balance Sheet Data $374,000 44,000 Accounts receivable decrease.. $17,100 Inventory decrease..... Prepaid expenses increase.. Accounts payable decrease Salaries payable increase.. 42,000 7,200 4,700 6,000 8,200 1,200arrow_forwardStaley Inc. reported the following data:Net income $280,000Depreciation expense 48,000Loss on disposal of equipment 19,520Increase in accounts receivable 17,280Increase in accounts payable 8,960Prepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License