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Cash Flows from Operating Activities—Indirect Method Staley Inc. reported the following data: Net income $417,900 Depreciation...
Cash Flows from Operating Activities—Indirect Method
Staley Inc. reported the following data:
| Net income | $417,900 |
| Depreciation expense | 64,500 |
| Loss on disposal of equipment | 28,300 |
| Increase in accounts receivable | 24,400 |
| Increase in accounts payable | 11,400 |
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Statement of Cash Flows (partial)Cash flows from operating activities: $Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities$
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Expert Solution
--Requirement
| Statement of Cash Flows (partial) | ||
| Cash flows from operating activities: | ||
| Net Income | $417,900 | |
| Adjustments to reconcile net income to net cash flow from operating activities: | ||
| Depreciation Expense | $64,500 | |
| Loss on disposal of equipment | $28,300 | $92,800 |
| Changes in current operating assets and liabilities: | ||
| Increase in accounts receivables | ($24,400) | |
| Increase in accounts payable | $11,400 | ($13,000) |
| Net cash flow from operating activities$ | $497,700 | |
| No. | Conceptual Notes |
| 1 | Cash Flow Statement reflects the Cash Inflows and Outflows during a period of time. |
| 2 | Effects of Non - Cash Transaction are adjusted from Net Income. |
| 3 | Depreciation Expense, Amortisation expenses are Added back to Net Income in Cash Flow Statement. |
| 4 | Decrease in Current Assets OR Increase in Current Liabilities are ADDED to Net Income |
| 5 | Increase in Current Assets OR Decrease in Current Liabilities are DEDUCTED from Net Income |
ekkarill92 answered 1 year agoRelated Solutions
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Accounts receivable (net)
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Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
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Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
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The net income reported on the income statement for the current
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End of Year
Beginning of Year
Cash
$48,220
$44,360
Accounts receivable (net)
34,570
32,780
Merchandise inventory
47,210
49,910
Prepaid expenses
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4,210
Accounts payable (merchandise creditors)
45,180
41,960
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Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
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The net income reported on the income statement for the current
year was $261,800. Depreciation recorded on equipment and a
building amounted to $78,300 for the year. Balances of the current
asset and current liability accounts at the beginning and end of
the year are as follows:
End of Year
Beginning of Year
Cash
$71,730
$74,600
Accounts receivable (net)
90,950
92,060
Inventories
179,330
158,600
Prepaid expenses
9,970
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Accounts payable (merchandise creditors)
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Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
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The net income reported on the income statement for the current
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the year are as follows:
End of Year
Beginning of Year
Cash
$63,450
$66,620
Accounts receivable (net)
80,450
82,210
Inventories
158,630
141,630
Prepaid expenses
8,820
9,390
Accounts payable (merchandise creditors)
70,870
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Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
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The net income reported on the income statement for the current
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End of Year
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Cash
$52,330
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Accounts receivable (net)
37,520
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Inventories
51,230
54,160
Prepaid expenses
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End of Year
Beginning of Year
Cash
$49,160
$44,740
Accounts receivable (net)
35,250
33,060
Merchandise inventory
48,130
50,330
Prepaid expenses
5,410
4,250
Accounts payable (merchandise creditors)
46,060
42,320
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year was $144,400. Depreciation recorded on store equipment for the
year amounted to $23,800. Balances of the current asset and current
liability accounts at the beginning and end of the year are as
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End of Year
Beginning of Year
Cash
$57,180
$52,030
Accounts receivable (net)
41,000
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Merchandise inventory
55,980
58,530
Prepaid expenses
6,290
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Accounts payable (merchandise creditors)
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1. Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for...
1.
Cash Flows from Operating Activities—Indirect Method
The net income reported on the income statement for the current
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End of Year
Beginning of Year
Cash
$45,900
$42,230
Accounts receivable (net)
32,910
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Merchandise inventory
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Prepaid expenses
5,050
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a. If sales for the current year were $509,900
and accounts receivable decreased by $32,600 during the year, what
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$
b. If income tax expense for the current year
was $44,200 and income tax payable decreased by $4,400 during the
year, what was the amount...
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