Question

In: Accounting

1.) Harlow Industries reported net income of $35,168 for the current year. During the year, Inventory...

1.) Harlow Industries reported net income of $35,168 for the current year. During the year, Inventory decreased by $11,561, Accounts Payable decreased by $15,530, Depreciation Expense was $6,972, and Accounts Receivable increased by $6,906. If the indirect method is used, what is the net cash provided by operating activities?

2.) Based on the following information about cash transactions, compute cash flows from financing activities. Note: Some information may not be necessary for your calculation.

Purchase of investments = $31,404

Dividends paid = $6,250

Interest paid = $9,580

Additional amount borrowed from a bank = $54,266

3.) Using the information below and the indirect method, calculate the Net Cash Provided by Operating Activities.

Net Income = $70,484

Depreciation Expense = $4,583

Increase in Accounts Receivable = $16,402

Decrease in Inventory = $25,488

Increase in Accounts Payable = $18,979

Decrease in Accrued Liabilities = $8,963

4.) Using the information below and the indirect method, calculate the Net Cash Provided by Operating Activities.

Net Income = $62,704

Depreciation Expense = $6,196

Decrease in Accounts Receivable = $19,660

Decrease in Inventory = $25,251

Increase in Accounts Payable = $15,033

Increase in Accrued Liabilities = $8,480

Expert Solution

Answer Q1

Harlow Industries reported - cash flow from Operating Activity
	Amount ($)
Income	35,168
Add- Inventory decreased	11,561
Less - Account payable decreaed	(15,530)
Add- Depreciation Expenses ( Non Cash item )	6,972
Less - Account receivable Increased	(6,906)
Cash flow from Operating Activity	31,265

Answer Q3

Harlow Industries reported - cash flow from Operating Activity
	Amount ($)
Income	70,484
Add- Depreciation Expenses ( Non Cash item )	4,583
Less - Account receivable Increased	(16,402)
Add- Inventory decreased	25,488
Add - Account payable Increased	18,979
Less - Accrued liability - decreased	(8,963)
Cash flow from Operating Activity	94,169

Q4	Harlow Industries reported - cash flow from Operating Activity
		Amount ($)
	Income	62,704
	Add- Depreciation Expenses ( Non Cash item )	6,196
	Add - Account receivable decreased	19,660
	Add- Inventory decreased	25,251
	Add - Account payable Increased	15,033
	Add - Accrued liability - Increased	8,480
	Cash flow from Operating Activity	1,37,324

Q2	Harlow Industries reported - cash flow from Investment Activity
		Amount ($)
	Add- Amount Borrowed	54,266
	LessPurchase of Investment	(31,404)
	Less - Dividend Payment	(6,250)
	Less - Interest Payment	(9,580)
	Cash flow from Investment Activity	7,032
	( as per IFRS , company can disclose dividend . Interest under
	any head - Operting , Investment , financial activity . But company
	should adopt one head and maintain consistently the same

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