Question

In: Accounting

The records of True Color Engraving reveal the? following: Net income $42,000 Depreciation expense $9,000 Sales...

The records of True Color Engraving reveal the? following:

Net income

$42,000

Depreciation expense

$9,000

Sales revenue

54,000

Decrease in current liabilities

31,000

Loss on sale of land

5,000

Increase in current assets other than cash

7,000

Acquisition of land

36,000

Compute cash flows from operating activities by the indirect method for year ended December? 31, 2018. ?(Use parentheses or a minus sign for numbers to be subtracted and to show net cash used for operating activities. If a box is not used in the? table, leave the box? empty; do not select a label or enter a? zero.)

True Color Engraving

Statement of Cash Flows (Partial)

Year Ended December 31, 2018

Cash Flows from Operating Activities:

Net Income ____________

Adjustments to Reconcile Net Income to Net Cash

Provided by (Used for) Operating Activities:

________________________________________ ___________   

________________________________________ ___________

A BUNCH OF BLANKS

Net Cash Provided by (Used for) Operating Activities ______________

Solutions

Expert Solution

  • Net Income is adjusted using Indirect method under ‘operating activities’ section.
  • Non cash expenses like depreciation are added back to net income.
  • Decrease in current assets and increase in current liabilities are ADDED to Net Income.
  • Increase in Current Assets and decrease in current liabilities are DEDUCTED from Net Income.
  • Cash Flow Statement – partial – as asked

Cash Flow from Operating Activities:

Net Income

$                42,000.00

Adjustments to reconcile Net Income to Net Cash

Provided by Operating activities:

Depreciation expense

$          9,000.00

Loss on sale of land

$          5,000.00

Decrease in Current liabilities

$     (31,000.00)

Increase in Current assets other than cash

$       (7,000.00)

$             (24,000.00)

Net Cash Provided by Operating Activities

$                18,000.00


Related Solutions

A company's income statement showed the following: net income, $124,000; depreciation expense, $30,000; and gain on...
A company's income statement showed the following: net income, $124,000; depreciation expense, $30,000; and gain on sale of plant assets, $14,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400. Calculate the net cash provided or used by operating activities. Select one: a. $155,000. b. $145,800. c. $141,000. d. $139,000. Please Solve As...
A company's income statement showed the following: net income, $135,400; depreciation expense, $32,700, and gain on...
A company's income statement showed the following: net income, $135,400; depreciation expense, $32,700, and gain on sale of plant assets, $15,350. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $10,300; merchandise inventory increased $19,800; prepaid expenses decreased $7,100; accounts payable increased $4,000. Calculate the net cash provided or used by operating activities.
A company's income statement showed the following: net income, $126,000; depreciation expense, $36,000; and gain on...
A company's income statement showed the following: net income, $126,000; depreciation expense, $36,000; and gain on sale of plant assets, $10,000. An examination of the company's current assets and current liabilities showed the following changes accounts receivable decreased $10,600; merchandise inventory increased $24,000; prepaid expenses increased $7,400; accounts payable increased $4,600. Calculate the net cash provided or used by operating activities. Multiple Choice $176,600. $155,400. $148,600. $150,600. $135,800. In preparing a company's statement of cash flows using the indirect method,...
A company's income statement showed the following: net income, $134,000; depreciation expense, $40,000; and gain on...
A company's income statement showed the following: net income, $134,000; depreciation expense, $40,000; and gain on sale of plant assets, $14,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $11,400; merchandise inventory increased $28,000; prepaid expenses increased $8,200; accounts payable increased $5,400. Calculate the net cash provided or used by operating activities. Multiple Choice $140,600. $183,000. $157,000. $155,000. $161,800.
A company's income statement showed the following: net income, $127,000 and depreciation expense, $30,900. An examination...
A company's income statement showed the following: net income, $127,000 and depreciation expense, $30,900. An examination of the company's current assets and current liabilities showed the following changes: accounts receivable decreased $9700; merchandise inventory increased $18,600; and accounts payable increased $3700. Calculate the net cash provided or used by operating activities.
A company's income statement showed the following: net income, $127,000; depreciation expense, $36,500; and gain on...
A company's income statement showed the following: net income, $127,000; depreciation expense, $36,500; and gain on sale of plant assets, $10,500. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $10,700; merchandise inventory increased $24,500; prepaid expenses increased $7,500; accounts payable increased $4,700. Calculate the net cash provided or used by operating activities. Multiple Choice $177,400. $156,200. $149,400. $151,400.
Question: Based on the following transactions, complete this income statement: Sales: Operating Expense: Depreciation Expense: EBIT:...
Question: Based on the following transactions, complete this income statement: Sales: Operating Expense: Depreciation Expense: EBIT: Intresrest Expense: Pre-tax Income: Taxes: Net Income: Dividened: Paid to Retained Earning: 1. Earn $85,000 in sales revenue: $40,000 into Accounts Receivable and $45,000 in cash. 2. The sales require $50,000 worth of existing inventory. $20,000 of additional inventory is purchased on credit and applied to the Accounts Payable. 3. $30,000 is collected from Accounts Recievable. 4. $35,000 of the Accounts Payable is due...
Papa Roach Exterminators, Inc., has sales of $694,000, costs of $235,000, depreciation expense of $42,000, interest...
Papa Roach Exterminators, Inc., has sales of $694,000, costs of $235,000, depreciation expense of $42,000, interest expense of $33,000, and a tax rate of 35 percent. The firm paid out $109,000 in cash dividends, and has 20,000 shares of common stock outstanding. (a) What is the earnings per share, or EPS, figure? (Click to select) (b) What is the dividends per share figure?
johnson's nursery has net income of 42,500, depreciation expense of 2500, interest expense of 1000 ,...
johnson's nursery has net income of 42,500, depreciation expense of 2500, interest expense of 1000 , taxes of 1600, additions to net working capital of 2600, cash dividends of 4200 and capital Expedientes 11,400 what is the amount of free cash flow?
The following information is available for Jack's jewelery and gift store: Net income: $5,000 Depreciation expense:...
The following information is available for Jack's jewelery and gift store: Net income: $5,000 Depreciation expense: $2,500 increase in deferred tax liabilities: 500 decrease in accounts receivables: 2,000 increase in inventories: 9,000 decrease in accounts payable: 5,000 increase in accrued liabilities: 1,000 Increase in property/equipment: 14,000 increase in short-term notes payable: 19,000 decrease in long-term bonds payable: 3,000 stock repurchase: 1000 -- What is the change in cash?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT