The following information was obtained from Galena Company's comparative balance sheets. Assume that Galena Company's 2018 income
Question:
The following information was obtained from Galena Company's comparative balance sheets. Assume that Galena Company's 2018 income statement showed depreciation expense of $8,000. again on sale of investments of $9,000, and net income of $45,000. Calculate the net cash flow from operating activities using the indirect method.
Dec. 31, 2018 Dec. 31, 2017 $ 19,000 $ 9,000 35,000 49,000 8,000 34,000 106,000 32,000 20,000 6,000 92,000 91,000 Cash.... Accounts receivable 44,000 55,000 6,000 21,000 150,000 Inventory... Prepaid rent Long-term investments.. Plant assets ... Accumulated depreciation Accounts payable.... Income tax payable Common stock.. Retained earnings ....... 40,000 24,000 4,000 121,000 106,000
Step by Step Answer:
Net income 45000 Add deduct items to convert net income to cash basis Add ...View the full answer
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
Related Video
In order to determine the amount of cash created by operating operations, the indirect technique for preparing the statement of cash flows entails adjusting net income with changes in balance sheet.
Students also viewed these Business questions
-
The following information was obtained from two independent samples selected from two normally distributed populations with unknown but equal standard deviations. a. Let 1 be the mean of population 1...
-
The following information was obtained from two independent samples selected from two normally distributed populations with unknown but equal standard deviations. a. Let µ1 be the mean of...
-
The following information was obtained from two independent samples selected from two normally distributed populations with unknown but equal variances. Construct a 95% confidence interval for the...
-
For each of the following tests, identify two different samples of people who would have the expertise to serve as subject matter experts (SMEs) for providing judgments regarding the content validity...
-
The coefficient of discharge of a sharp-edged orifice is determined at one set of conditions by use of an accurately calibrated gas meter. The orifice has a diameter of 20 mm and the pipe diameter...
-
The following are typical tasks performed by GAS. For each task, provide an example of how GAS could be used to accomplish that task. a. Analyze a file b. Select transactions based on logical...
-
In a landmark case, William E. Story told his nephew in March 1869 that if the nephew would refrain from drinking liquor, using tobacco, swearing, and playing cards or billiards for money until he...
-
Moss Exports is having a bad year. Net income is only $60,000. Also, two important overseas customers are falling behind in their payments to Moss, and Mosss accounts receivable are ballooning. The...
-
We have defined a PyTorch network class DAN for you. You need to implement the forward pass for your deep averaging network. To start, first implement average that averages the words in a review and...
-
1. Evaluate Big Cats financial performance from 2000 to 2007 (Exhibit 2). As part of your analysis, prepare balance sheets using information from the case and from the following two videos (Big Cats...
-
For fiscal year 2018. Beyer GmbH had the following summary information available concerning its operating activities. The company had no investing or financing activities this year. REQUIRED: a....
-
For liscal year 2018. Riffe Enterprises had the following summary information concerning its operating activities. The company had no investing or financing activities this year. REQUIRED: a. Enter...
-
How should you handle a case where required return computations from CAPM and the constant growth rate model are very different?
-
Discuss the link between andragogy and coaching What role does goal setting play in the coaching paradigm? How can you apply coaching methodologies to help the client avoid the "giving up" syndrome?...
-
What is not true regarding an invoice in QuickBooks Online?
-
Using Python, make plots of the Poisson and Gaussian probability distributions on the same graph. Write your own definition of these distributions, don't just grab a function that produces the...
-
The second step in developing an organization-wide coaching plan is identifying what it means to be an effective coach within the organization, beginning with yourself. Now that you have gained more...
-
the task is to evaluate (make an appraisal of the worth of something) two or more coaching and mentoring approaches for supporting people, and two or more approaches for developing teams. I...
-
Two vectors have magnitudes 3.0 and 4.0. How are the directions of the two vectors related if? (a) The sum has magnitude 7.0, or (b) If the sum has magnitude 5.0? (c) What relationship between the...
-
Rewrite the code of Figure 7.3 in Ada, Java, or C#. Figure 7.3: template class queue { item items [max_items]; int next_free, next_full, num_items; public: queue () : next_free (0), next_full(0),...
-
Why is it necessary to use comparative balance sheets, a current income statement, and certain transaction data in preparing a statement of cash flows? Discuss.
-
(a) What are the phases of the corporate life cycle? (b) What effect does each phase have on the numbers reported in a statement of cash flows?
-
(a) What are the phases of the corporate life cycle? (b) What effect does each phase have on the numbers reported in a statement of cash flows?
-
Watts and Lyon are forming a partnership. Watts invests $40,500 and Lyon invests $49,500. The partners agree that Watts will work one-fourth of the total time devoted to the partnership and Lyon will...
-
Pixel Studio, Incorporated, is a small company that creates computer-generated animations for films and television. Much of the company's work consists of short commercials for television, but the...
-
The Hester Corporation, a diversified distribution company, purchases cartons of canned golf balls from the LongDistance Company and markets the balls under the Hester brand name. Hester started...
Study smarter with the SolutionInn App