Beta Company spent $40,000 for a new delivery truck during the year. Depreciation expense of $2,000 related to the truck was shown on the income statement. How are the purchase of the truck and the related depreciation reflected on the statement of cash flows prepared using the indirect method?
Answer to relevant QuestionsIn 2012, Jewels Company had net income of $350,000. The depreciation on plant assets during 2012 was $73,000, and the company incurred a loss on the sale of plant assets of $20,000. All other transactions were cash. Compute ...During 2011, Cameron Company had $300,000 in cash sales and $3,500,000 in credit sales. The accounts receivable balances were $450,000 and $530,000 at December 31, 2010 and 2011, respectively. What was the total cash ...For each transaction, indicate the amount of the cash flow, indicate whether each results in an inflow or outflow of cash, and give the section of the statement in which each cash flow would appear. Assume the statement of ...Brenda Textiles, Inc., reported net income of $120,000 for 2011. The company also reported depreciation expense of $35,000 and a loss of $2,500 on the sale of sewing equipment. The comparative balance sheet shows a decrease ...Use the information from E9-36B to prepare the cash from operating activities section of the statement of cash flows using the indirect method. Then, compare it with the statement you prepared for E9-36B. What are the ...
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