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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 2 years agoRelated Solutions
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method
The net income reported on the income statement for the current
year was $123,300. Depreciation recorded on store equipment for the
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liability accounts at the beginning and end of the year are as
follows:
End of Year
Beginning of Year
Cash
$47,100
$42,860
Accounts receivable (net)
33,770
31,670
Inventories
46,110
48,220
Prepaid expenses
5,180
4,070
Accounts payable (merchandise creditors)
44,130
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Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method
The net income reported on the income statement for the current
year was $313,300. Depreciation recorded on equipment and a
building amounted to $93,700 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
$78,330
$81,460
Accounts receivable (net)
99,320
100,520
Inventories
195,830
173,180
Prepaid expenses
10,890
11,490
Accounts payable (merchandise creditors)
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90,910...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method
The net income reported on the income statement for the current
year was $126,900. Depreciation recorded on store equipment for the
year amounted to $20,900. 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
$48,220
$44,360
Accounts receivable (net)
34,570
32,780
Merchandise inventory
47,210
49,910
Prepaid expenses
5,300
4,210
Accounts payable (merchandise creditors)
45,180
41,960
Wages...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method
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
10,520
Accounts payable (merchandise creditors)
80,120
83,250...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method
The net income reported on the income statement for the current
year was $235,000. Depreciation recorded on equipment and a
building amounted to $70,300 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
$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
74,350...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method
The net income reported on the income statement for the current
year was $133,500. Depreciation recorded on store equipment for the
year amounted to $22,000. 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
$52,330
$48,140
Accounts receivable (net)
37,520
35,580
Inventories
51,230
54,160
Prepaid expenses
5,760
4,570
Accounts payable (merchandise creditors)
49,030
45,540
Wages payable...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method
The net income reported on the income statement for the current
year was $128,700. Depreciation recorded on store equipment for the
year amounted to $21,200. 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
$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
Wages...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method
The net income reported on the income statement for the current
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
follows:
End of Year
Beginning of Year
Cash
$57,180
$52,030
Accounts receivable (net)
41,000
38,450
Merchandise inventory
55,980
58,530
Prepaid expenses
6,290
4,940
Accounts payable (merchandise creditors)
53,580
49,220
Wages...
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
year was $118,900. Depreciation recorded on store equipment for the
year amounted to $19,600. 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
$45,900
$42,230
Accounts receivable (net)
32,910
31,210
Merchandise inventory
44,940
47,510
Prepaid expenses
5,050
4,010
Accounts payable (merchandise creditors)
43,010
39,950...
Cash Flows from Operating Activities—Direct Method The cash flows from operating activities are reported by the...
Cash Flows from Operating Activities—Direct Method
The cash flows from operating activities are reported by the
direct method on the statement of cash flows. Determine the
following:
a. If sales for the current year were $509,900
and accounts receivable decreased by $32,600 during the year, what
was the amount of cash received from customers?
$
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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