Question

22. Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

Net income	$	87,300
Depreciation expense		14,000
Gain on sale of land		6,300
Increase in merchandise inventory		4,050
Increase in accounts payable		8,150

22B. Alvez reports net income of $340,000 for the year ended December 31. It also reports $111,900 depreciation expense and a $12,100 loss on the sale of equipment. Its comparative balance sheet reveals a $48,600 increase in accounts receivable, a $12,300 decrease in prepaid expenses, a $18,700 increase in accounts payable, a $15,300 decrease in wages payable, a $90,400 increase in equipment, and a $121,000 decrease in notes payable. Calculate the net increase in cash for the year.

22C.On February 15, Jewel Company buys 6,500 shares of Marcelo Corp. common stock at $28.93 per share plus a brokerage fee of $450. The stock is classified as available-for-sale securities. This is the company’s first and only investment in available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.25 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.20 per share less a brokerage fee of $300. The balance in the investment account on April 16 is:

Answer 1

22)	Net cash provided by operating activities
	Net income for the year				87,300
	Adjustments to reconcile net income to
	net cash by operating activities
	Depreciation expense				14,000
	Gain on sale of land				-6,300
	increase in merchandise inventory				-4,050
	increase in accounts payable				8,150
	net cash by operating activities				99,100	answer
22B)
	Net cash provided by operating activities
	Net income for the year				340,000
	Adjustments to reconcile net income to
	net cash by operating activities
	Depreciation expense				111,900
	loss on sale of Equipment				12,100
	increase in accounts receivable				-48,600
	Decrease in prepaid expense				12,300
	increase in accounts payable				18,700
	Decrease in wages payable				-15,300
	Net cash provided by operating activities				431,100
	Cash from investing activities
	purchase of Equipment				-90,400
	Cash from financing activities
	decrease in notes payable				-121,000
	Net increase in cash				219,700
22C)	cost of Securities
	cost.				188045
	Add brokerage				450
	total cost				188495
	Balance in investment accounts			188495/6500*3,250
				94247.5	answer