Flounder Company reported 2017 net income of $156,700. During 2017, accounts receivable increased by $13,900 and...

Flounder Company reported 2017 net income of $156,700. During 2017, accounts receivable increased by $13,900 and accounts payable increased by $9,673. Depreciation expense was $39,900. Prepare the cash flows from operating activities section of the statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Solutions

Expert Solution

Flounder Company
Statement of cash flows ( Indirect method)
For the year ended December 31, 2017
	(Amount in $)	(Amount in $)
Cash flows from Operating Activities
Net Income		156,700
Adjustments to reconcile net income to net cash provided by operating activities:
Income statement items not affecting cash:
Depreciation expenses	39,900

Changes in current operating assets and liabilities:
Increase in Accounts receivables	(13,900)
Increase in Accounts Payable	9,673
Net cash provided by operating activities		192,373

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Pronghorn Company reported 2020 net income of $152,900. During 2020, accounts receivable increased by $13,760 and...

Pronghorn Company reported 2020 net income of $152,900. During 2020, accounts receivable increased by $13,760 and accounts payable increased by $9,604. Depreciation expense was $44,000. Prepare the cash flows from operating activities section of the statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) PRONGHORN COMPANY Cash Flow Statement choose the accounting period ...

Swifty Corporation reported net income of $203000 for the year. During the year, accounts receivable increased...

Swifty Corporation reported net income of $203000 for the year. During the year, accounts receivable increased by $15000, accounts payable decreased by $6000 and depreciation expense of $32000 was recorded. Net cash provided by operating activities for the year is $214000. $192000. $179000. $203000.

On this year's income statement Norton Company reported net income of $10,000. During the year, accounts...

On this year's income statement Norton Company reported net income of $10,000. During the year, accounts receivable changed by $404, inventory changed by $2,989, accounts payable changed by $-1,422, and depreciation of $16,888 was recorded. Using only this information, what was the amount of net cash flow from operating activities reported using the indirect method?

A company had net income of $210000. Depreciation expense is $27000. During the year, Accounts Receivable...

A company had net income of $210000. Depreciation expense is $27000. During the year, Accounts Receivable and Inventory increased $17000 and $42000, respectively. Prepaid Expenses and Accounts Payable decreased $5000 and $6000, respectively. There was also a loss on the sale of equipment of $2000. How much cash was provided by operating activities? $179000 $241000 $271000 $175000

A company had net income of $226,932. Depreciation expense was $25,699. During the year, accounts receivable...

A company had net income of $226,932. Depreciation expense was $25,699. During the year, accounts receivable and inventory increased by $15,649 and $27,550, respectively. Prepaid expenses and accounts payable decreased by $3,313 and $6,060, respectively. There was also a loss on the sale of equipment of $6,825. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method?

aaaaa bonded company reported the following on its 12/31/2017 financial statements: Accounts Receivable (net of a...

aaaaa bonded company reported the following on its 12/31/2017 financial statements: Accounts Receivable (net of a $16,000 Allowance) of $104,000 Consider that during 2018 Layer Cake accrued bad debt at 3% of credit sales, reported actual customer write offs of $21,000, credit sales of $800,000, and cash collections from customers as payment on account of $789,000. Additionally, the controller determined (from a detailed 12/31 aging analysis) that it would be appropriate to report the receivables on the 12/31/2018 balance sheet...

Small Company reported 2017 net income of $300,000 and paid dividends of $90,000 during the year....

Small Company reported 2017 net income of $300,000 and paid dividends of $90,000 during the year. Parker Inc. acquired 20% of Small's outstanding voting stock on January 1, 2017 for $630,000. At December 31, 2017, Parker determined the fair value of the shares in small to be $615,000. Parker reported operating income of $540,000. instructions: Compute Parker's net income for 2017 assuming it uses the following methods to account for its investment. a. equity method in accounting for its investment...

During a recent year, the Corp. reported net income of $25,000. The company also reported the...

During a recent year, the Corp. reported net income of $25,000. The company also reported the following activities: a. Purchased equipment for $6,000 in cash. b. Issued common stock for $1,000 in cash c. Depreciation of equipment was $9,000 for the year More information is presented below. Current year Prior year Assets Cash and cash equivalents $84,000 $48,700 Accounts receivable 53,600 50,000 Inventory 39,600 39,000 Prepaid expenses 5,500 15,000 Equipment 206,000 200,000 Accumulated depreciation (126,700) (117,700) Liabilities Current liabilities ...

Net income figures for Flounder Ltd. are as follows: 2016 - $77,800 2017 - $56,500 2018...

Net income figures for Flounder Ltd. are as follows: 2016 - $77,800 2017 - $56,500 2018 - $86,400 2019 - $90,600 2020 - $71,600 Future income is expected to continue at the average amount of the past five years. The company’s identifiable net assets are appraised at $468,200 on December 31, 2020. The business is to be acquired by Novak Corp. in early 2021. The normal rate of return on net assets for the industry is 9%. Click here to...

Everest Climbers reported the following information for 2016 and 2017: 2016 2017 Accounts receivable $50...

Everest Climbers reported the following information for 2016 and 2017: 2016 2017 Accounts receivable $50 000 $75 000 Inventories 43 000 30 000 Accounts payable 29 000 49 000 Total comprehensive income 270 000 Depreciation expense 11 000 If Everest Climbers uses the indirect method to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 2017? Can you explain in using both Direct...

Subjects