Question
In: Accounting
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.
Solutions
Expert Solution
$140,600.
Working:
| Cash flow from operating Activities: | ||||||
| Net Income | $ 1,34,000 | |||||
| Depreciation expenses | 40,000 | |||||
| Gain on sale of plant assets | -14,000 | |||||
| Adjustment of Current Assets and current Liabilities: | ||||||
| Accounts Receivable decreased | 11,400 | |||||
| Merchandise Inventory increased | -28,000 | |||||
| Perpaid Expenses increased | -8,200 | |||||
| Accounts Payable increased | 5,400 | |||||
| Net Cash Provided by Operating Activities | 1,40,600 | |||||
| Note: | ||||||
| Depreciation is non cash expenses . So it is added back. | ||||||
| Gain on sale of plant assets is not related with the operation.So it is added back. | ||||||
ekkarill92 answered 1 year agoRelated 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, $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.
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.
The income statement disclosed the following items for 2016: Depreciation expense $65,140 Gain on disposal of...
The income statement disclosed the following items for 2016:
Depreciation expense
$65,140
Gain on disposal of equipment
29,350
Net income
408,700
Balances of the current assets and current liability accounts
changed between December 31, 2015, and December 31, 2016, as
follows:
Increase (Decrease)
Accounts receivable
$8,540
Inventory
(4,200)
Prepaid insurance
(1,600)
Accounts payable
(6,220)
Income taxes payable
1,620
Dividends payable
2,270
Required:
A.
Prepare the Cash Flows from Operating Activities section of the
statement of cash flows
A summary of...
The income statement disclosed the following items for the year: Depreciation expense $65,000 Gain on disposal...
The income statement disclosed the following items for the
year:
Depreciation expense
$65,000
Gain on disposal of equipment
27,500
Net income
620,000
The changes in the current asset and liability accounts for the
year are as follows:
Increase
(Decrease)
Accounts receivable
$11,200
Inventory
(6,350)
Prepaid insurance
(1,200)
Accounts payable
(4,200)
Income taxes payable
1,650
Dividends payable
2,500
a. Prepare the Cash Flows from Operating
Activities section of the A summary of the cash receipts and cash
payments for a specific...
The income statement disclosed the following items for the year: Depreciation expense $65,000 Gain on disposal...
The income statement disclosed the following items for the
year:
Depreciation expense
$65,000
Gain on disposal of equipment
27,500
Net income
620,000
The changes in the current asset and liability accounts for the
year are as follows:
Increase
(Decrease)
Accounts receivable
$11,200
Inventory
(6,350)
Prepaid insurance
(1,200)
Accounts payable
(4,200)
Income taxes payable
1,650
Dividends payable
2,500
a. Prepare the Cash Flows from Operating
Activities section of the A summary of the cash receipts and cash
payments for a specific...
a. Titan Inc had net income of $300,000, Depreciation expense of $35,000, gain on sale of...
a. Titan Inc had net income of $300,000, Depreciation expense of
$35,000, gain on sale of equipment $11,000, and provided the
following information for 2029:
2019
2018
Accounts receivable
52,000
18,000
Prepaid insurance
20,000
30,000
Accounts payable
35,000
11,000
Taxes payable
8,000
29,000
Wages payable
49,000
5,000
Using the indirect method, how much was Titan's net cash
provided by operating activities?
b. On April 1, 2017, Titan Inc. 6% annual interest-bearing note
payable for $60,000. The note has a maturity...
Bracewell Ltd. reported net income of £195,000 for 2017. Bracewell also reported depreciation expense of £40,000...
Bracewell Ltd. reported net income of £195,000 for 2017.
Bracewell also reported depreciation expense of £40,000 and a gain
of £5,000 on disposal of plant assets. The comparative statements
of financial position show an increase in accounts receivable of
£15,000 for the year, a £17,000 increase in accounts payable, and a
£4,000 decrease in prepaid expenses.
Instructions: Prepare the operating activities section of the
statement of cash flows for 2017. Use the direct
method.
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