Question

In: Accounting

Selected accounts from the SFP of Tabby Ltd. at 31 December 20X7 and 20X6 are presented below. Tabby reported earnings of $125,000 in 20X7, and depreciation expense was $20,000.

Selected accounts from the SFP of Tabby Ltd. at 31 December 20X7 and 20X6 are presented below. Tabby reported earnings of $125,000 in 20X7, and depreciation expense was $20,000.

Required:

Calculate cash from operating activities for 20X7.

Solutions

Expert Solution

Operating activities

            Net earnings............................................................................ $ 125,000

            Adjustments for items not requiring cash:

                  Depreciation expense........................................................... 20,000

                                                                                                                     145,000

            Changes in current assets and current liabilities:

             Decrease in prepaid rent........................................................    12,000

             Increase in inventory...............................................................    (4,000)

                  Decrease in rent payable.....................................................   (3,000)

             Increase in pension liability....................................................    15,000

            

      Cash from operating activities..................................................... $165,000

 

Good form is not required. Only the total of $165,000 is required by the question.

Good form is not required. Only the total of $165,000 is required by the question.

Junaid answered 1 year ago
Next > < Previous

Related Solutions

Selected accounts from the SFP of Passen Ltd. at 31 December 20X8 and 20X7 are presented below. Passen reported earnings of $100,000 in 20X8.
Selected accounts from the SFP of Passen Ltd. at 31 December 20X8 and 20X7 are presented below. Passen reported earnings of $100,000 in 20X8. There was a stock dividend recorded, valued at $50,000 that reduced retained earnings and increased common shares.There was also a cash dividend declared and common shares issued for cash. Required:List the items that would be included in the SCF from these accounts for 20X8. Include the appropriate section (operating, investing, or financing). Use the indirect method...
Selected accounts from the SFP of Gentron Ltd. at 31 December 20X5 and 20X4 are presented below. Gentron declared $100,000 of cash dividends during
Selected accounts from the SFP of Gentron Ltd. at 31 December 20X5 and 20X4 are presented below. Gentron declared $100,000 of cash dividends during the year, and purchased $200,000 of machinery in direct exchange for common shares. Required:List the items that would be included in the SCF from these accounts for 20X5. Include the appropriate section (operating, investing, or financing). Use the indirect method of presentation in the operating activities section. List the non-cash item disclosure. Make logical assumptions about...
Presented below are selected ledger accounts of Riverbed Corporation as of December 31, 2017. Cash $52,200...
Presented below are selected ledger accounts of Riverbed Corporation as of December 31, 2017. Cash $52,200 Administrative expenses 104,700 Selling expenses 82,970 Net sales 559,300 Cost of goods sold 268,600 Cash dividends declared (2017) 23,260 Cash dividends paid (2017) 17,600 Discontinued operations (loss before income taxes) 41,600 Depreciation expense, not recorded in 2016 39,200 Retained earnings, December 31, 2016 97,930 Effective tax rate 30% Prepare a partial income statement beginning with income from continuing operations before income tax, and including...
Presented below are selected ledger accounts of Sunland Corporation as of December 31, 2017. Cash $67,100...
Presented below are selected ledger accounts of Sunland Corporation as of December 31, 2017. Cash $67,100 Administrative expenses 106,500 Selling expenses 84,980 Net sales 543,300 Cost of goods sold 261,800 Cash dividends declared (2017) 20,730 Cash dividends paid (2017) 17,400 Discontinued operations (loss before income taxes) 44,200 Depreciation expense, not recorded in 2016 35,500 Retained earnings, December 31, 2016 96,240 Effective tax rate 30% a) Compute net income for 2017. b) Prepare a partial income statement beginning with income from...
Presented below are selected accounts of Sheffield Company at December 31, 2017. Inventory (finished goods) $...
Presented below are selected accounts of Sheffield Company at December 31, 2017. Inventory (finished goods) $ 59,800 Cost of Goods Sold $2,113,900 Unearned Service Revenue 94,800 Notes Receivable 40,400 Equipment 261,700 Accounts Receivable 170,720 Inventory (work in process) 43,100 Inventory (raw materials) 183,830 Cash (not including restricted cash) 40,000 Supplies Expense 55,820 Debt Investments (trading) 39,500 Allowance for Doubtful Accounts 12,420 Customer Advances 54,800 Licenses 16,580 Restricted Cash for Plant Expansion 59,500 Additional Paid-in Capital 80,630 Treasury Stock 22,540 The...
Presented below are selected ledger accounts of Windsor Corporation as of December 31, 2017. Cash $55,200...
Presented below are selected ledger accounts of Windsor Corporation as of December 31, 2017. Cash $55,200 Administrative expenses 102,800 Selling expenses 83,460 Net sales 549,100 Cost of goods sold 263,700 Cash dividends declared (2017) 24,130 Cash dividends paid (2017) 22,300 Discontinued operations (loss before income taxes) 42,900 Depreciation expense, not recorded in 2016 30,600 Retained earnings, December 31, 2016 96,200 Effective tax rate 30% Prepare a partial income statement beginning with income from continuing operations before income tax, and including...
The following data were taken from the SFP accounts of Bramble Corporation on December 31, 2020:...
The following data were taken from the SFP accounts of Bramble Corporation on December 31, 2020: Current assets $ 1,035,000 FV-NI investments 842,000 Common shares (unlimited authorized, 590,000 shares issued and outstanding) 6,490,000 Contributed surplus 360,000 Retained earnings 1,790,000 A 8% stock dividend is declared at their fair value and distributed at a time when the shares’ fair value is $51 per share. Prepare the required journal entries. (Credit account titles are automatically indented when the amount is entered. Do...
Presented below are selected ledger accounts of Woods Corporation at December 31, 2015. Cash $185,000 Salaries...
Presented below are selected ledger accounts of Woods Corporation at December 31, 2015. Cash $185,000 Salaries and wages expense (sales) $284,000 Inventory (beginning) 535,000 Salaries and wages expense (office) 346,000 Sales revenue 4,175,000 Purchase returns 15,000 Unearned sales revenue 117,000 Sales returns and allowance 79,000 Purchases 2,786,000 Freight-in 72,000 Sales discounts 34,000 Accounts receivable 142,500 Purchase discounts 27,000 Sales commissions 83,000 Selling expenses    69,000 Telephone and Internet expense (sales) 17,000 Accounting and legal services 33,000 Utilities expense (office) 32,000...
Presented below are selected ledger accounts of Woods Corporation at December 31, 2015. Cash $185,000 Salaries...
Presented below are selected ledger accounts of Woods Corporation at December 31, 2015. Cash $185,000 Salaries and wages expense (sales) $284,000 Inventory (beginning) 535,000 Salaries and wages expense (office) 346,000 Sales revenue 4,175,000 Purchase returns 15,000 Unearned sales revenue 117,000 Sales returns and allowance 79,000 Purchases 2,786,000 Freight-in 72,000 Sales discounts 34,000 Accounts receivable 142,500 Purchase discounts 27,000 Sales commissions 83,000 Selling expenses    69,000 Telephone and Internet expense (sales) 17,000 Accounting and legal services 33,000 Utilities expense (office) 32,000...
Presented below are selected ledger accounts of Woods Corporation at December 31, 2015. Cash $185,000 Salaries...
Presented below are selected ledger accounts of Woods Corporation at December 31, 2015. Cash $185,000 Salaries and wages expense (sales) $284,000 Inventory (beginning) 535,000 Salaries and wages expense (office) 346,000 Sales revenue 4,175,000 Purchase returns 15,000 Unearned sales revenue 117,000 Sales returns and allowance 79,000 Purchases 2,786,000 Freight-in 72,000 Sales discounts 34,000 Accounts receivable 142,500 Purchase discounts 27,000 Sales commissions 83,000 Selling expenses    69,000 Telephone and Internet expense (sales) 17,000 Accounting and legal services 33,000 Utilities expense (office) 32,000...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT