Question

In: Accounting

Perrymore reports the following items related to the statement of cash flows: Net loss $35,000 Gain...

Perrymore reports the following items related to the statement of cash flows:

Net loss $35,000

Gain on sale of equipment $17,000

Purchase of equipment $26,200

Depreciation expense $49,000

Increase in accounts receivable $3,500

Increase in income tax payable $8,600

Cash received from sale of bonds $86,000

What amount would Perrymore report for "Cash from operating activities"?

Solutions

Expert Solution

Cash Flow from operating activities
Net Loss from Income statement        (3,500)
Adjustments to reconcile net income to operating cash flow
Add: Depreciation Expense           49,000
Less: Gain on sale of equipment        (17,000)
Accounts Receivable Increase           (3,500)
Increase In Inocme tax payable             8,600
Total adjusted amount        37,100
Cash flow from operating activities        33,600
NOTE: Purchase of equipment is part of investing activity and Cash received from sale of bonds is part of financing activity.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

the statement of cash flows reports for a period of time the net cash flows from...
the statement of cash flows reports for a period of time the net cash flows from a. operatingn, income, and financial activities b. operating, investing, and financing activitez c. investing, financial, and budgeting activites d. income, investing, and budgeting activities
Alternative Treatments of Items of the Statement of Cash Flows The statement of cash flows is...
Alternative Treatments of Items of the Statement of Cash Flows The statement of cash flows is intended to provide information about the investing, financing, and operating activities of an enterprise during an accounting period. In a statement of cash flows, cash inflows and outflows for interest expense, interest revenue, and dividend revenue and payments to the government are considered operating activities. Required: a. Do you believe that cash inflows and outflows associated with nonoperating items, such as interest expense, interest...
Statement of Cash Flows The following is a list of items for Witts Company's 2016 statement...
Statement of Cash Flows The following is a list of items for Witts Company's 2016 statement of cash flows: receipt from sale of equipment, $2,700 increase in inventory, $3,900 net income, $13,500 payment for purchase of building, $29,000 depreciation expense, $8,700 receipt from issuance of bonds, $8,000 increase in prepaid expenses, $800 loss on sale of equipment, $2,200 payment of dividends, $5,200 decrease in accounts receivable, $1,700 issuance of common stock for land, $6,900 decrease in accounts payable, $1,500 beginning...
Statement of Cash Flows The following are several items involving the cash flow activities of the...
Statement of Cash Flows The following are several items involving the cash flow activities of the ROCKY HORROR PICTURE CO. for 2016: Net income, $58,000 Payment of dividends, $16,300 Ten-year, $32,100 bonds payable were issued at face value Depreciation expense, $15,500 Building acquired at a cost of $30,800 Accounts receivable decreased by $2,700 Accounts payable decreased by $4,700 Equipment acquired at a cost of $6,500 Inventories increased by $7,000 Beginning cash balance, $15,300 Required: Prepare Rocky Horror Picture's statement of...
Statement of Cash Flows The following are several items involving the cash flow activities of the...
Statement of Cash Flows The following are several items involving the cash flow activities of the ROCKY HORROR PICTURE CO. for 2016: Net income, $43300 Payment of dividends, $15600 Ten-year, $36100 bonds payable were issued at face value Depreciation expense, $20600 Building was acquired at a cost of $36400 Accounts receivable decreased by $1800 Accounts payable decreased by $4600 Equipment was acquired at a cost of $6600 Inventories increased by $6100 Beginning cash balance, $16500 Required: Prepare Rocky Horror Picture's...
Statement of Cash Flows The following are several items involving the cash flow activities of the...
Statement of Cash Flows The following are several items involving the cash flow activities of the ROCKY HORROR PICTURE CO. for 2016: Net income, $45,800 Payment of dividends, $14,400 Ten-year, $31,600 bonds payable were issued at face value Depreciation expense, $24,900 Building acquired at a cost of $38,400 Accounts receivable decreased by $2,900 Accounts payable decreased by $3,000 Equipment acquired at a cost of $5,100 Inventories increased by $5,700 Beginning cash balance, $30,100 Required: Prepare Rocky Horror Picture's statement of...
On the statement of cash flows prepared by the indirect method, a $50,000 gain on the...
On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of investments would be: Select one: a. deducted from net income in converting the net income reported on the income statement to cash flows from operating activities. b. added to net income in converting the net income reported on the income statement to cash flows from operating activities. c. added to cash received from the sale to determine cash flows from investing activities....
Statement of Cash Flows Lake Isabella, Inc. reports the following income statement for the year ended...
Statement of Cash Flows Lake Isabella, Inc. reports the following income statement for the year ended December 31, 2018: Sales $2,268,000 Cost of goods sold 732,480 Gross profit 1,535,520 Depreciation expense 66,300 Selling and administrative expense 688,800 Income before tax 780,420 Income tax expense 161,736 Net income $ 618,684 The company also reports the following information from the balance sheet: December 31, 2018 December 31, 2017 Cash $ 126,000 $ 50,400 Accounts receivable 100,000 62,000 Inventory 28,800 39,200 Accounts payable...
In a statement of cash flows (indirect method), which of the following are added to net...
In a statement of cash flows (indirect method), which of the following are added to net income to determine net cash flow from operating activities? Select one: a. Amortization of Premium on Bond Investments, but not Increase in Prepaid Expenses b. Increase in Prepaid Expenses, but not Amortization of Premium on Bond Investments c. Both Amortization of Premium on Bond Investments and Increase in Prepaid Expenses d. Neither Amortization of Premium on Bond Investments nor Increase in Prepaid Expenses
The statement of cash flows would not report which one of the following items? a. stock...
The statement of cash flows would not report which one of the following items? a. stock dividends b. purchase of capital stock c. redemption of long-term debt d. issuance of long-term debt
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT