Question
In: Accounting
Prepare the cash flows from operating activities section of Mansfield's statement of cash flows using the indirect method.
Net income of Mansfield Company was $45,000. The accounting records reveal depreciation expense of $80,000 as well as increases in prepaid rent, salaries payable, and income taxes payable of $60,000, $15,000, and $12,000, respectively. Prepare the cash flows from operating activities section of Mansfield's statement of cash flows using the indirect method.
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Expert Solution
Cash Flows from Operating Activities:
Net income $45,000
Adjustments for noncash effects:
Depreciation expense 80,000
Changes in operating assets and liabilities:
Increase in prepaid rent (60,000)
Increase in salaries payable 15,000
Increase in income taxes payable 12,000
Net cash inflows from operating activities $92,000
Net cash inflows from operating activities: $92,000
Renze Joy Candido answered 1 year agoRelated Solutions
Prepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method.
Demers Inc. reported the following data:ParticularsAmount$Net income490,000Depreciation expense52,000Gain on Disposal of equipment26,500Decrease in accounts receivable32,400Decrease in accounts payable12,350Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method
Prepare the cash flows from operating activities section of HHC’s statement of cash flows using the direct method.
The following are summary cash transactions that occurred during the year for Hilliard Healthcare Co. (HHC)ParticularsAmount$Cash received from : Customers6,60,000Interest on note receivable12,000Collection of note receivable1,00,000Sale of land40,000Issuance of common stock2,00,000Cash paid for : Interest on note payable18,000Purchase of equipment1,20,000Operating expenses4,40,000Dividends to shareholders 30,000Prepare the cash flows from operating activities section of HHC’s statement of cash flows using the direct method
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The following are summary cash transactions that occurred during the year for Hilliard Healthcare Co. (HHC):
Cash Received from:
Customers ........................................................$660,000
Interest on note receivables ..........................12,000
Collection of note receivable.......................100,000
Sale of land ..........................................................40,000
Insurance of common stock..........................200,000
Cash paid for:
Interest on note payable .................................18,000
Purchase of equipment .................................120,000
Operating expenses .......................................440,000
Dividends to shareholders .............................30,000
Prepare the cash flows from the operating activities section of HHC's statement of cash flows using the direct method.
Prepare the cash flows from operating activities section of Tiger’s 2021 statement of cash flows using the direct method.
Required:Prepare the cash flows from operating activities section of Tiger’s 2021 statement of cash flows using the direct method. Assume that all purchases and sales of inventory are on account, and that there are no anticipated bad debts for accounts receivable.
E 4–20
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating...
Prepare a statement of cash flows, using the indirect method
of presenting cash flows from operating activities. Refer
to the Labels and Amount Descriptions list provided for the exact
wording of the answer choices for text entries. Be sure to complete
the heading of the statement. In the operating activities section,
use the minus sign to indicate cash outflows, decreases in cash and
a net cash outflow, if required. In the investing and financing
activities section, use a minus sign...
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating...
Prepare a statement of cash flows, using the indirect method of
presenting cash flows from operating activities. Refer to the
Labels and Amount Descriptions list provided for the exact wording
of the answer choices for text entries. Be sure to complete the
heading of the statement. In the operating activities section, use
the minus sign to indicate cash outflows, decreases in cash and a
net cash outflow, if required. In the investing and financing
activities section, use a minus sign...
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating...
Prepare a statement of cash flows, using the indirect
method of presenting cash flows from operating activities. Use the
minus sign to indicate cash out flows, cash payments, decreases in
cash, or any negative adjustments.
The comparative balance sheet of Whitman Co. at December 31,
20Y2 and 20Y1, is as follows:
Dec. 31,
20Y2
Dec. 31,
20Y1
Assets
Cash
$ 701,950
$ 755,530
Accounts receivable (net)
638,770
582,620
Inventories
968,690
891,480
Prepaid expenses
22,460
26,670
Land
241,470
365,010
Buildings
1,116,100...
Statement of Cash Flows The indirect method of preparing Cash Flows from Operating Activities in the...
Statement of Cash Flows
The indirect method of preparing Cash Flows from Operating
Activities in the Statement of Cash Flows starts with accrual
net income, and makes adjustments to convert it to net cash
provided (used) by operating activities.
REQUIRED: Explain how and
why the following three items would be handled in the
conversion of accrual net income to net cash provided (used) by
operating activities.
(1) Depreciation Expense
(2) An increase in Accounts Receivable
(3) An increase in Wages...
Prepare the operating section of cash flows statement on 31-dec (using the indirect method) you have...
Prepare the operating section of cash flows statement on 31-dec
(using the indirect method) you have the following information
balances on 30-11 , 31-12 respectively
Cash $ 249,930
$264,343
Petty cash 150,
255
Accounts receivable,
317,420
260000
Allowance for uncollectibles,
$ 4,580
111300
Notes receivable
45,000
104200
Interest receivable
0
1800
Inventory 531,960,
440000
Office supplies 2,320
830
Prepaid insurance
11,020,
5640
Prepaid rent
25,410,
18150
Bond sinking fund
145,000
160000
Land 43,000
99650
Buildings 306,000
306000
Accumulated depreciation -...
Create the “Operating Section”of the statement of cash flows using the indirect method(ONLYTHE OPERATING SECTION). Place...
Create the “Operating Section”of the statement of cash flows
using the indirect method(ONLYTHE
OPERATING SECTION).
Place your answer on this
page(operating section only, indirect
method).
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