Question
In: Accounting
A began operations on January 1, 2016. Below are selected data from XYZ Corp.'s balance sheets...
A began operations on January 1, 2016. Below are selected data from XYZ Corp.'s balance sheets as of December 31, 2016 and December 31, 2017.
Account December 31, 2016 December 31, 2017
Cash 20,000 35,000
Accounts Receivable 10,000 33,000
Equipment 100,000 109,000
Less: Accumulated Depreciation(10,000) (20,000)
Current Liabilities 3,000 4,000
During 2017, XYZ bought $20,000 of equipment.
During 2017, XYZ sold equipment with a cost of $12,000 and accumulated depreciation of $5,000 for a $2,000 gain.
Net income for 2017 was $55,000.
Complete the following operating activities section using the indirect method that will be shown on Statement of Cash Flows for the year ended December 31, 2017.
Cash flows from operating
| net income | ? | |
| Depreciation expense | ? | |
| Gain on sale of equipment | ? | |
| Increase in accounts receivable | ? | |
| increase in current liabilities | ? | |
| Net cash provided by operating activities | ? | ? |
Solutions
Expert Solution
- Requirement
|
Net income |
$ 55,000.00 |
|
|
Adjustments to reconcile Net Income |
||
|
Depreciation expense |
$ 15,000.00 |
|
|
Gain on sale of equipment |
$ (2,000.00) |
|
|
Increase in accounts receivable |
$ (23,000.00) |
|
|
increase in current liabilities |
$ 1,000.00 |
$ (9,000.00) |
|
Net cash provided by operating activities |
$ 46,000.00 |
- Depreciation expense = Ending Accumulated Depreciation + Dep on Equipment sold – Beginning Accum Dep
= 20000 + 5000 – 10000 = 15000
ekkarill92 answered 1 year agoRelated Solutions
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Total liabilities,
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