Question
In: Accounting
The total adjustments to net income to determine cash flows from operating activities are……(Hint: be sure...
- The total adjustments to net income to determine cash flows from operating activities are……(Hint: be sure to add up changes in current assets and current liabilities as noted on the balance sheet going from year 2017 to year 2018) to get the answer
-
Moore's Family Restaurant Assets & Liabilities as of 12/31/17 Assets & Liabilities projected to 12/31/18 ASSETS ASSETS Cash $492,118.00 Cash $589,118.00 Accounts Receivable $29,000.00 Accounts Receivable $49,095.00 Inventories $30,000.00 Inventories $30,000.00 Prepaid Expenses $2,000.00 Prepaid Expenses $11,000.00 Total Current Assets $553,118.00 Total Current Assets $679,213.00 Building $727,460.97 Building $760,000.00 Equipment $14,500.00 Equipment $18,000.00 Fixtures $33,320.00 Fixtures $35,500.00 Total Fixed Assets $775,280.97 Total Fixed Assets $813,500.00 Total Assets $1,328,398.97 Total Assets $1,492,713.00 LIABILITIES LIABILITIES Accounts Payable $57,432.00 Accounts Payable $137,566.00 Wages and Benefits Due $16,516.59 Wages and Benefits Due $29,543.00 Estimated Taxes and Fees $6,013.00 Estimated Taxes and Fees $8,013.00 Total Current Liabilities $79,961.59 Total Current Liabilities $175,122.00 Long Term Loan $70,000.00 Long Term Loan $70,000.00 Total Long-Term Liabilities $70,000.00 Total Long-Term Liabilities $70,000.00 Owner Equity $1,178,437.38 Owner Equity $1,247,591.00 Total Liabilities and Owner Equity $1,328,398.97 Total Liabilities and Owner Equity $1,492,713.00
| Moores Familay Restaurant Financial Data | 2017 | 2018 (Present Day) | 2019 Budget Forecast | |
| Budget Worksgheet | ||||
| Sales | $1,642,896 | $1,766,296 | $2,002,978 | |
| Cost of Product | $697,211 | $597,211 | 701,042 | |
| Labor | $330,772 | $340,695 | 349,212 | |
| Benefits | $79,872 | $114,519 | 122,224 | |
| Utilities | $54,340 | $50,644 | $58,241 | |
| Loan Principle Repayments | $0 | $0 | $0 | |
| Insurance & Property Taxes | $110,000 | $110,000 | $110,000 | |
| Services (accounting, trash, cleaning, etc.) | $41,051 | $43,908 | $105,494 | |
| Other: SG&A, advertising, promostions | $77,629 | $84,771 | $93,248 | |
| Total Costs | $1,390,875 | $1,341,748 | $1,539,462 | |
| Earnings Before Interest, Income Taxes, & Depreciation (EBITD) | $252,021 | $424,548 | $463,516 | |
| Interest on loan | $3,500 | $3,000 | $3,000 | |
| Income Taxes | $70,566 | $118,873 | $129,784 | |
| Depreciation on values | $71,176 | $61,777 | $61,177 | |
| Earnings After Interest, Income Taxes, & Depreciation | $106,779 | $240,897 | $269,555 | |
| Meals Sold | 243,392 | 252,328 | 272,514 | |
| Average Meal Value | 6.75 | 7.00 | 7.35 | |
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| Moore's Family Restaurant | Workings | Amount $ | ||
| Cashflow statement as on 31.12.2018 | Increase in Accounts Receivable | |||
| Indirect Method | Amount $ | Amount $ | Closing Balance | 49,095.00 |
| Particulars | Less: Opening Balance | 29,000.00 | ||
| Net Income | 240,897.00 | Increase in Accounts Receivable | 20,095.00 | |
| Adjustment to reconcile Net Income to Net Cash | ||||
| Add: | Increase in Prepaid Expenses | |||
| Depreciation Expense | 61,777.00 | Closing Balance | 11,000.00 | |
| Income Taxes | 118,783.00 | Less: Opening Balance | 2,000.00 | |
| Cash flow from Operations | 421,457.00 | Increase in Prepaid Expenses | 9,000.00 | |
| Changes in Current Assets/Current Liabilities | ||||
| Increase in Accounts Receivable | (20,095.00) | Increase in Accounts Payable | ||
| Increase in Prepaid Expenses | (9,000.00) | Closing Balance | 137,566.00 | |
| Increase in Accounts Payable | 80,134.00 | Less: Opening Balance | 57,432.00 | |
| Increase in Wages and Benefits Due | 13,026.41 | 64,065.41 | Increase in Accounts Payable | 80,134.00 |
| Taxes and Fees paid | (116,783.00) | |||
| Net cash provided by (Used for) operating activities | 368,739.41 | Increase in Wages and Benefits Due | ||
| Closing Balance | 29,543.00 | |||
| Cash flow from investing activities | Less: Opening Balance | 16,516.59 | ||
| Addition in Fixed Assets | (99,996.03) | Increase in Wages and Benefits Due | 13,026.41 | |
| Net cash provided by (Used for) investing activities | (99,996.03) | |||
| Taxes and Fees paid | ||||
| Cash flow from financing activities | Opening Balance | 6,013.00 | ||
| Changes in Equity | (171,743.38) | Add: Income Taxes for 2018 | 118,783.00 | |
| Net cash provided by (Used for) financing activities | (171,743.38) | Less: Closing Balance | 8,013.00 | |
| Taxes and Fees paid | 116,783.00 | |||
| Net Increase/(Decrease) in cash | 97,000.00 | |||
| Cash Balance, December 31, 2017 | 492,118.00 | Addition in Fixed Assets | ||
| Cash Balance, December 31, 2018 | 589,118.00 | Closing balances of | ||
| Building | 760,000.00 | |||
| Equipment | 18,000.00 | |||
| Fixtures | 35,500.00 | |||
| Add: Depreciation | 61,777.00 | |||
| Less: Opening balances of | ||||
| Building | 727,460.97 | |||
| Equipment | 14,500.00 | |||
| Fixtures | 33,320.00 | |||
| Addition in Fixed Assets | 99,996.03 | |||
| Changes in Equity | ||||
| Opening balance | 1,178,437.38 | |||
| Add- Net Income | 240,897.00 | |||
| Less- Closing balance | 1,247,591.00 | |||
| Changes in Equity | 171,743.38 | |||
ekkarill92 answered 2 years agoRelated Solutions
Cash Flows from Operating Activities Net Income $ 539,000 Adjustments to reconcile net income to net...
Cash Flows from
Operating Activities
Net Income
$ 539,000
Adjustments to reconcile net income to net cash from
operating activities:
Depreciation expense
63,400
Increase in net accounts receivable
(376,000)
Increase in inventory
(396,000)
Increase in accounts payable
102,000
Decrease in accrued liabilities
(79,000)
Increase in income taxes payable
24,000
Gain on sale of land
(53,000)
Loss on sale of investments
6,000
Net cash provided(used) by
operating activities
$(169,600)
Cash Flows from Investing...
Which adjustments to net income in the operating activities section of the statement of cash flows...
Which adjustments to net income in the operating activities
section of the statement of cash flows are directly related to cash
flows in other sections
The income statement and a schedule reconciling cash flows from operating activities to net income are...
The income statement and a schedule reconciling cash flows from
operating activities to net income are provided below for Macrosoft
Corporation.
MACROSOFT CORPORATION
Income Statement
For the Year Ended December 31, 2021
($ in millions)
Revenues and gains:
Sales
$
320.00
Gain on sale of cash equivalents
2.50
Gain on sale of investments
24.50
$
347.00
Expenses and loss:
Cost of goods sold
$
125.00
Salaries
40.50
Interest expense
12.50
Insurance
20.50
Depreciation
10.50
Patent amortization
4.50
Loss on sale...
The income statement and a schedule reconciling cash flows from operating activities to net income are...
The income statement and a schedule reconciling cash flows from
operating activities to net income are provided below ($ in
thousands) for Peach Computers.
PEACH COMPUTERS
Income Statement
For the Year Ended December 31, 2021
Sales
$
320.0
Cost of goods sold
(160.0
)
Gross margin
160.0
Salaries expense
$
35.0
Insurance expense
12.0
Depreciation expense
5.0
Loss on sale of land
3.0
55.0
Income before tax
105.0
Income tax expense
(52.5
)
Net income
$
52.5
Reconciliation of Net...
The income statement and a schedule reconciling cash flows from operating activities to net income are...
The income statement
and a schedule reconciling cash flows from operating activities to
net income are provided below for Mike Roe Computers.
MIKE ROE COMPUTERS
Income Statement
For the Year Ended December 31, 2021
($ in millions)
Sales
$
150.20
Cost of goods
sold
(90.00
)
Gross
margin
60.20
Salaries
expense
$
18.20
Insurance
expense
12.00
Depreciation
expense
4.50
Interest
expense
5.50
(40.20
)
Gains and
losses:
Gain on sale of
equipment
11.00
Loss on sale of
land
(2.00
)...
The income statement and a schedule reconciling cash flows from operating activities to net income are...
The income statement and a schedule reconciling cash flows from
operating activities to net income are provided below ($ in
thousands) for Peach Computers.
PEACH COMPUTERS
Income Statement
For the Year Ended December 31, 2021
Sales
$
500.0
Cost of goods sold
(250.0
)
Gross margin
250.0
Salaries expense
$
59.0
Insurance expense
36.0
Depreciation expense
17.0
Loss on sale of land
15.0
127.0
Income before tax
123.0
Income tax expense
(61.5
)
Net income
$
61.5
Reconciliation of Net...
The income statement and a schedule reconciling cash flows from operating activities to net income are...
The income statement and a schedule reconciling cash flows from
operating activities to net income are provided below for Mike Roe
Computers.
MIKE ROE COMPUTERS
Income Statement
For the Year Ended December 31, 2021
($ in millions)
Sales
$
148.00
Cost of goods sold
(89.00
)
Gross margin
59.00
Salaries expense
$
18.00
Insurance expense
11.00
Depreciation expense
4.00
Interest expense
5.30
(38.30
)
Gains and losses:
Gain on sale of equipment
10.00
Loss on sale of land
(1.00
)...
The income statement and a schedule reconciling cash flows from operating activities to net income are...
The income statement and a schedule reconciling cash flows from
operating activities to net income are provided below ($ in
millions) for Mike Roe Computers.
MIKE ROE COMPUTERS
Income Statement
For the Year Ended December 31, 2018
Sales
$
148.20
Cost of goods sold
(89.10
)
Gross margin
59.10
Salaries expense
$
18.20
Insurance expense
11.20
Depreciation expense
4.10
Interest expense
5.10
(38.60
)
Gains and losses:
Gain on sale of equipment
10.20
Loss on sale of land
(1.20
)...
The income statement and a schedule reconciling cash flows from operating activities to net income are...
The income statement and a schedule reconciling cash flows from
operating activities to net income are provided below ($ in
millions) for Mike Roe Computers.
MIKE ROE COMPUTERS
Income Statement For the Year Ended December 31, 2018
Sales $ 148.00
Cost of goods sold (89.00 )
Gross margin 59.00
Salaries expense $ 18.00
Insurance expense 11.00
Depreciation expense 4.00
Interest expense 5.30 (38.30 )
Gains and losses:
Gain on sale of equipment 10.00
Loss on sale of land (1.00 )...
The income statement and a schedule reconciling cash flows from operating activities to net income are...
The income statement and a schedule reconciling cash flows from
operating activities to net income are provided below ($ in
millions) for Mike Roe Computers.
MIKE ROE COMPUTERS
Income Statement
For the Year Ended December 31, 2018
Sales
$
148.40
Cost of goods sold
(89.20
)
Gross margin
59.20
Salaries expense
$
18.40
Insurance expense
11.40
Depreciation expense
4.20
Interest expense
5.20
(39.20
)
Gains and losses:
Gain on sale of equipment
10.40
Loss on sale of land
(1.40
)...
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