Calculating Net Cash Flow from Operating Activities (Indirect Method) Lincoln Company owns no plant assets and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Calculating Net Cash Flow from Operating Activities (Indirect Method) Lincoln Company owns no plant assets and reported the following income statement for the current year: Sales Cost of Goods Sold $470,000 $780,000 Wages Expense 110,000 Rent Expense 42,000 Insurance Expense 15,000 637,000 Net Income $143,000 Additional balance sheet information about the company follows: End of Year Beginning of Year Accounts Receivable $54,000 $49,000 Inventory 60,000 66,000 Prepaid Insurance 8,000 7,000 Accounts Payable 22,000 18,000 Wages Payable 9,000 11,000 Use the information to a. Calculate the net cash flow from operating activities under the indirect method. $ 145,000 b. Compute Lincoln Company's operating cash flow to current liabilities (OCFCL) ratio. (Assume current liabilities consist of accounts payable and wages payable.) (Round your answer to two decimal places.) 4.67 Calculating Net Cash Flow from Operating Activities (Indirect Method) Lincoln Company owns no plant assets and reported the following income statement for the current year: Sales Cost of Goods Sold $470,000 $780,000 Wages Expense 110,000 Rent Expense 42,000 Insurance Expense 15,000 637,000 Net Income $143,000 Additional balance sheet information about the company follows: End of Year Beginning of Year Accounts Receivable $54,000 $49,000 Inventory 60,000 66,000 Prepaid Insurance 8,000 7,000 Accounts Payable 22,000 18,000 Wages Payable 9,000 11,000 Use the information to a. Calculate the net cash flow from operating activities under the indirect method. $ 145,000 b. Compute Lincoln Company's operating cash flow to current liabilities (OCFCL) ratio. (Assume current liabilities consist of accounts payable and wages payable.) (Round your answer to two decimal places.) 4.67
Expert Answer:
Answer rating: 100% (QA)
Solution Mel coutflow from operating artivity Rudirect Method Particulars Nel E... View the full answer
Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
Posted Date:
Students also viewed these accounting questions
-
Lincoln Company owns no plant assets and reported the following income statement for the current year: Additional balance sheet information about the company follows: Use the information to a....
-
Refer to the information in Exercise 4-35. Calculate the net cash flow from operating activities using the direct method. Show a related cash flow for each revenue and expense. Also, compute its...
-
58. HarperMotors sells 40 cars per month at an average price of $25,000. Thecarrying cost per car is $160 and the fixed order cost is $695. Howmany orders should the company place per year? 2 answers
-
Approximate the centroid of the lamina shown in Figure 22. All measurements are in centimeters, and the horizontal measurements occur 5 centimeters apart. 6.5 9 40 10 10.5- 10.5
-
Jamie Rodriguez, a currency trader for Chicago-based Ventosa Investments, uses the following futures quotes on the British pound () to speculate on the value of the pound. a. If Jamie buys 5 June...
-
Maxfli Hot Air Balloons, Inc., completed the following selected transac- tions during 2009: Requirement Record the transactions in the general journal. Feb. 9 Declared a cash dividend on the 10,000...
-
A 2018 Pew Research Center survey found that more Americans believe they could give up their televisions than could give up their cell phones (Pew Research website). Assume that the following table...
-
Could you show how to allocate these inputs using the direct, step-down, and reciprocal methods. Power Maintenance Human Resources Accounting Cutting Shaping Painting Initial costs Power Usage (Kwhr)...
-
Kaplan Computers manufactures high end computer systems for the graphics design industry. At the present time, the company makes three computers with the following characteristics: Computer 1...
-
you operate a box folding machine. The machine isn't folding the flaps as it should and as a result, the boxes are not as sturdy as they should be. You follow standard protocol by conducting the...
-
Armani Weavings Limited (AWL) obtained a long term loan of Rs. 300 million from Dunhill Bank Limited (DBL) against the charge over its factory buildings. The charge was duly registered with the...
-
Marketing organizations use branding as a means of identifying products and developing an image. Branding strategies involve decisions on the brand name and logo , the package design, and the product...
-
Willis Inc. just paid an annual dividend of $2.40 a share. The market price of the stock is $31.80 and the growth rate is 2.5 %. What is the firm's cost of equity? The tax rate = 40%.
-
Given the following 4% bond. Today's date:March 30 th , 2006 Maturity date:January 31 st , 2010 Next coupon payment date:January, 31 st , 2007 Accrued Coupon ( millions):6356.16 Price:101.830 Yield...
-
DF & FM manufactures a range of generators that are assembled from components that are bought in from other suppliers. The company does not use a standard cost accounting system and work in...
-
What is an access control list?
-
A portion of Note 2: Earnings per Share from Facebook, lnc.'s 10-K is as follows: a. Explain why employee stock options and restricted stock units are adjustments to the denominator for diluted EPS....
-
Petroni, Inc., which closes its books on December 31, is authorized to issue $800,000 of 9%, 20- year bonds dated March 1, 2019, with interest payments on September 1 and March 1. REQUIRED: Assuming...
-
Report the effects for each of the following independent transactions using the financial statement effects template. If no entry should be made, answer "No entry." Balance Sheet Income Statement...
-
A gas obeys the equation of state \(V=\frac{R T}{P}-\frac{C}{T^{2}}+\frac{D}{T^{3}}\). Find out the variation \(C_{P}\) at constant temperature.
-
For a pure substance, if internal energy is considered to be the function of any two of the independent variables \(P, V\), and \(T\), then derive the following relations: (a) \(\left(\frac{\partial...
-
Deduce two \(T d S\) equations and mention why \(T d S\) equations are so useful.
Study smarter with the SolutionInn App