Question
In: Accounting
Calculating Operating Cash Flows (Direct Method) Calculate the cash flow for each of the following cases....
Calculating Operating Cash Flows (Direct Method)
Calculate the cash flow for each of the following cases.
a. Cash paid for advertising:
| Advertising expense | $62,000 |
| Prepaid advertising, beginning of year | 11,000 |
| Prepaid advertising, end of year | 15,000 |
| Cash paid for advertising | $Answer |
b. Cash paid for income taxes:
| Income tax expense | $29,000 |
| Income tax payable, beginning of year | 7,100 |
| Income tax payable, end of year | 4,900 |
| Cash paid for income taxes | $Answer |
c. Cash paid for merchandise purchased:
| Cost of goods sold | $180,000 |
| Inventory, beginning of year | 30,000 |
| Inventory, end of year | 25,000 |
| Accounts payable, beginning of year | 10,000 |
| Accounts payable, end of year | 12,000 |
| Cash paid for merchandise purchased: | $Answer |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
To produce a cash flow income statement, the direct method calculates operating cash flows by: a.adjusting...
To produce a cash flow income statement, the direct method
calculates operating cash flows by:
a.adjusting net income for noncash items.
b.adjusting each line of the income statement.
c.adjusting the income statement for changes only in current
liabilities.
d.adjusting net income for changes in all the current
assets.
Which of the following is an example of a cash equivalent?
a.A patent
b.A long-term investment
c.A money market fund
d.A prepaid expense
Following is the financial information of Merry Company for...
Cash Flows from Operating Activities—Direct Method The cash flows from operating activities are reported by the...
Cash Flows from Operating Activities—Direct Method
The cash flows from operating activities are reported by the
direct method on the statement of cash flows. Determine the
following:
a. If sales for the current year were $509,900
and accounts receivable decreased by $32,600 during the year, what
was the amount of cash received from customers?
$
b. If income tax expense for the current year
was $44,200 and income tax payable decreased by $4,400 during the
year, what was the amount...
Prepare a statement of cash flows for 2019, using the direct method to determine net cash flow from operating activities.
Rowe Publishing Company
Balance Sheets
December 31, 2019 and 2018
1
2019
2018
2
Assets
3
Current assets:
4
Cash
$85,000.00
$66,000.00
5
Accounts receivable
240,000.00
231,000.00
6
Inventory
190,000.00
170,000.00
7
Total current assets
$515,000.00
$467,000.00
8
Property, plant, and equipment:
9
Building
$400,000.00
$400,000.00
10
Equipment
155,000.00
130,000.00
11
$555,000.00
$530,000.00
12
Accumulated depreciation
(375,000.00)
(350,000.00)
13
Net property, plant, and equipment
180,000.00
180,000.00
14
Total assets
$695,000.00
$647,000.00
15
LIABILITIES AND EQUITY
16
Current liabilities:
17
Accounts...
Prepare the cash flows from operating activities section of HHC’s statement of cash flows using the direct method.
The following are summary cash transactions that occurred during the year for Hilliard Healthcare Co. (HHC)ParticularsAmount$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
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):
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.
Compare and contrast the direct method and indirect method for reporting cash flows from operating activities!
Compare and contrast the direct method and indirect method for
reporting cash flows from operating activities!
Analyzing Operating Cash Flows (Direct Method) Lincoln Company owns no plant assets and reported the following...
Analyzing Operating Cash Flows (Direct
Method)
Lincoln Company owns no plant assets and reported the following
income statement for the current year:
Sales
$750,000
Cost of goods sold
$470,000
Wages expense
110,000
Rent expense
42,000
Insurance expense
15,000
637,000
Net income
$113,000
End of Year
Beg. of Year
Accounts receivable
$54,000
$49,000
Inventory
60,000
66,000
Prepaid insurance
8,000
7,000
Accounts payable
22,000
18,000
Wages payable
9,000
11,000
Calculate the net cash flow from operating activities using the
direct method. Show...
Analyzing Operating Cash Flows (Direct Method) Lincoln Company owns no plant assets and reported the following...
Analyzing Operating Cash Flows (Direct Method)
Lincoln Company owns no plant assets and reported the following
income statement for the current year:
Sales
$600,000
Cost of goods sold
$376,000
Wages expense
88,000
Rent expense
33,600
Insurance expense
12,000
509,600
Net income
$90,400
End of Year
Beg. of Year
Accounts receivable
$59,400
$53,900
Inventory
66,000
72,600
Prepaid insurance
8,800
7,700
Accounts payable
24,200
19,800
Wages payable
9,900
12,100
Calculate the net cash
flow from operating activities using the direct method. Show...
Operating Cash Flows (Direct Method) Lincoln Company owns no plant assets and reported the following income...
Operating Cash Flows (Direct Method)
Lincoln Company owns no plant assets and reported the following
income statement for the current year:
Sales
$ 780,000
Cost of goods sold
$ 430,000
Wages expense
90,000
Rent expense
38,000
Insurance expense
14,000
572,000
Net income
$ 208,000
Additional balance sheet information about the company follows:
End of Year
Beginning of Year
Accounts receivable
$ 53,000
$ 49,000
Inventory
60,000
65,000
Prepaid insurance
8,000
7,000
Accounts payable
20,000
18,000
Wages payable
9,000
10,000
Calculate...
Analyzing Operating Cash Flows (Direct Method) Lincoln company owns no plant assets and reported the following...
Analyzing Operating Cash Flows (Direct Method)
Lincoln company owns no plant assets and reported the following
income statement for the current year:
Sales
$375,000
Cost of goods sold
$235,000
wages expense
55,000
rent expense
21,000
insurance expense
7,500
318,500
net income
$56,500
End Of Year
Beginning of year
Accounts Receivable
$21,600
$19,600
Inventory
24,000
26,400
Prepaid insurance
3,200
2,800
Accounts payable
8,800
7,200
Wages Payable
3,600
4,400
Calculate the net cash flow from operating activities using the
direct method. show...
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