Exercise 16-4 (Algo) Indirect: Cash flows from operating activities LO P2 The following income statement and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Exercise 16-4 (Algo) Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,545,000 Cost of goods sold 757,050 Gross profit 787,950 Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 211,665 37,080 41,715 4,635. 16,995 312,090 475,860 6,180 $ 482,040 Accounts receivable Inventory $ 22,800 increase Accounts payable 35,275 increase Salaries payable $ 11,175 decrease 3,700 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Exercise 16-4 (Algo) Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,545,000 Cost of goods sold 757,050 Gross profit 787,950 Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 211,665 37,080 41,715 4,635. 16,995 312,090 475,860 6,180 $ 482,040 Accounts receivable Inventory $ 22,800 increase Accounts payable 35,275 increase Salaries payable $ 11,175 decrease 3,700 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
When Steve Jobs first demonstrated "the pinch"-the two-finger gesture to zoom in and out on photos and Web pages on the iPhone, it just rocked the mobile phone industry-the whole digital world heard...
-
1. What are the ethical issues in this case? 2. What are some reasons the decision maker in this case might be inclined to go along? Not go along? 3. If you were the decision maker, how would you...
-
Impair Inc. has an operating segment that is composed of three cash generating units (CGUs) as follows: CGU A retail operations located in the Midwestern U.S. CGU B retail operations located in the...
-
Which backup method is the fastest? a. full daily backup c. differential daily backup b. incremental daily backup d. complete daily backup
-
Jerry Jeff Keen, the CFO of Boots Unlimited, a Texas corporation, has come to you regarding a potential restructuring of business operations. Boots has long manufactured its western boots in plants...
-
Consider the following information: Rate of Return if State Occurs Probability of State State of Economy of Economy Stock A Stock B Stock C Boom .20 .35 .45 .25 Good .45 .20 .16 .09 Poor .25 -.02...
-
Consider the initial value problem 36y" + 60y' + 25y = 0, y(0) = a, y'(0) = -1. Find the critical value of a that separates solutions that become negative from those that are always positive for t >...
-
Rewrite the save and restore routines in the language of your choice so that they employ the push and pop procedures.
-
Rewrite the save and restore routines in 2-address code, assuming block move (BMOVE) and restore (BRESTORE) instructions are available. Make the necessary assumptions about the format of the...
-
In recent years, some teams names and mascots have come to be considered offensive. Do you think this is a binary variable? Explain your answer, with examples.
-
Rewrite the save and restore routines so that they save and restore to the head and tail of a ring buffer, respectively.
-
Rewrite the save and restore routines assuming that eight general register (R0R7) and the program counter are to be saved on a stack. Do this for (a) 0-address machine (b) 1-address machine (c)...
-
f) Describe the effect of an increase in the factor cost of a product (eg labour, material) on equilibrium price and quantity, that is how will price and quantity change
-
A. Select a recent issue (paper or online) of Report on Business Magazine, Canadian Business Magazine (online only), Bloomberg Businessweek, Fast Company, The Economist, or another business magazine....
-
Because the feed underflow in Example 14-1 was not the same as in the other stages, we had to do the feed stage calculation separately, but connected to, the calculation for the remainder of the...
-
Derive Eq. (14-15a) and the corresponding equation for \(\mathrm{x}_{\mathrm{D}, \mathrm{M}}\). (14--15a) XA.M EOYA,0 + FXA,N+1 EO+F 0+(1000) (0.2) 662+1000 = 0.120
-
Adapt the Kremser equation to leaching with constant flow rates.
Study smarter with the SolutionInn App