EXERCISE 12-1B

Exercise 12-1B Use the indirect method to determine cash flows from operating activities An accountant for Farve Enterprise Companies (FEC) computed the following information by making comparisons between FEC's Year 2 and Year 1 balance sheets. Further information was determined by examining the company's Year 2 income statement. 1. The amount of an increase in the balance of a Prepaid Rent account. 2. The amount of an increase in the balance of a Treasury Stock account. 3. The amount of a decrease in the balance of the Accounts Receivable account. 4. The amount of a gain arising from the sale of land. 5. The amount of an increase in the balance of the Salaries Payable account. 6. The amount of an increase in the balance of the Bonds Payable account. 7. The amount of depreciation expense shown on the income statement. 8. The amount of cash dividends paid to the stockholders. 9. The amount of an increase in the balance of an Unearned Revenue account. 10. The amount of a decrease in the balance of an Inventory account. 11. The amount of a decrease in the balance of a Land account. For each item in the preceding list, indicate whether the amount should be added to or subtracted from Required the amount of net income when determining the amount of net cash flow from operating activities using the indirect method. Also identify any items that do not affect net cash flow from operating activities because they are reported as investing or financing activities. rereise 1is: Wrereise 1B: Exercise 12-1B Use the indirect method to determine cash flows from operating activities An accountant for Farve Enterprise Companies (FEC) computed the following information by making comparisons between FEC's Year 2 and Year 1 balance sheets. Further information was determined by examining the company's Year 2 income statement. 1. The amount of an increase in the balance of a Prepaid Rent account. 2. The amount of an increase in the balance of a Treasury Stock account. 3. The amount of a decrease in the balance of the Accounts Receivable account. 4. The amount of a gain arising from the sale of land. 5. The amount of an increase in the balance of the Salaries Payable account. 6. The amount of an increase in the balance of the Bonds Payable account. 7. The amount of depreciation expense shown on the income statement. 8. The amount of cash dividends paid to the stockholders. 9. The amount of an increase in the balance of an Unearned Revenue account. 10. The amount of a decrease in the balance of an Inventory account. 11. The amount of a decrease in the balance of a Land account. Required For each item in the preceding list, indicate whether the amount should be added to or subtracted from the amount of net income when determining the amount of net cash flow from operating activities using the indirect method. Also identify any items that do not affect net cash flow from operating activities because they are reported as investing or financing activities. Exercise 12-1B Use the indirect method to determine cash flows from operating activities An accountant for Farve Enterprise Companies (FEC) computed the following information by making comparisons between FEC's Year 2 and Year 1 balance sheets. Further information was determined by examining the company's Year 2 income statement. 1. The amount of an increase in the balance of a Prepaid Rent account. 2. The amount of an increase in the balance of a Treasury Stock account. 3. The amount of a decrease in the balance of the Accounts Receivable account. 4. The amount of a gain arising from the sale of land. 5. The amount of an increase in the balance of the Salaries Payable account. 6. The amount of an increase in the balance of the Bonds Payable account. 7. The amount of depreciation expense shown on the income statement. 8. The amount of cash dividends paid to the stockholders. 9. The amount of an increase in the balance of an Unearned Revenue account. 10. The amount of a decrease in the balance of an Inventory account. 11. The amount of a decrease in the balance of a Land account. Required For each item in the preceding list, indicate whether the amount should be added to or subtracted from the amount of net income when determining the amount of net cash flow from operating activities using the indirect method. Also identify any items that do not affect net cash flow from operating activities because they are reported as investing or financing activities. Exercise 12-1B Use the indirect method to determine cash flows from operating activities An accountant for Farve Enterprise Companies (FEC) computed the following information by making comparisons between FEC's Year 2 and Year 1 balance sheets. Further information was determined by examining the company's Year 2 income statement. 1. The amount of an increase in the balance of a Prepaid Rent account. 2. The amount of an increase in the balance of a Treasury Stock account. 3. The amount of a decrease in the balance of the Accounts Receivable account. 4. The amount of a gain arising from the sale of land. 5. The amount of an increase in the balance of the Salaries Payable account. 6. The amount of an increase in the balance of the Bonds Payable account. 7. The amount of depreciation expense shown on the income statement. 8. The amount of cash dividends paid to the stockholders. 9. The amount of an increase in the balance of an Unearned Revenue account. 10. The amount of a decrease in the balance of an Inventory account. 11. The amount of a decrease in the balance of a Land account. Required For each item in the preceding list, indicate whether the amount should be added to or subtracted from the amount of net income when determining the amount of net cash flow from operating activities using the indirect method. Also identify any items that do not affect net cash flow from operating activities because they are reported as investing or financing activities. Exercise 12-18 Use the indirect method to determine cash flow from operating activities An accountant for Farve Enterprise Companies (FEC) computed the following information by making comparisons between FEC's Year 2 and Year 1 balance sheets. Further information was determined by examining the company's Year 2 income statement. 1. The amount of an increase in the balance of a Prepaid Rent account. 2. The amount of an increase in the balance of a Treasury Stock account. 3. The amount of a decrease in the balance of the Accounts Receivable account. 4. The amount of a gain arising from the sale of land. 5. The amount of an increase in the balance of the Salaries Payable account. 6. The amount of an increase in the balance of the Bonds Payable account. 7. The amount of depreciation expense shown on the income statement. 8. The amount of cash dividends paid to the stockholders. 9. The amount of an increase in the balance of an Unearned Revenue account. 10. The amount of a decrease in the balance of an Inventory account. 11. The amount of a decrease in the balance of a Land account. Required For each item in the preceding list, indicate whether the amount should be added to or subtracted from the amount of net income when determining the amount of net cash flow from operating activities using the indirect method. Also identify any items that do not affect net cash flow from operating activities because they are reported as investing or financing activities. Exercise 12-18 Use the indirect method to determine cash flows from operating activities An accountant for Farve Enterprise Companies (FEC) computed the following information by making comparisons between FEC's Year 2 and Year I balance sheets. Further information was determined by examining the company's Year 2 income statement. 1. The amount of an increase in the balance of a Prepaid Rent account. 2. The amount of an increase in the balance of a Treasury Stock account. 3. The amount of a decrease in the balance of the Accounts Reccivable account. 4. The amount of a gain arising from the sale of land. 5. The amount of an increase in the balance of the Salaries Payable account. 6. The amount of an increase in the balance of the Bonds Payable account. 7. The amount of depreciation expense shown on the income statement. 8. The amount of cash dividends paid to the stockholders. 9. The amount of an increase in the balance of an Unearned Revenue account. 10. The amount of a decrease in the balance of an Inventory account. 11. The amount of a decrease in the balance of a Land account. Required For each item in the preceding list, indicate whether the amount should be added to or subtracted from the amount of net income when determining the amount of net cash flow from operating activities using the indirect method. Also identify any items that do not afiect net cash flow from operating activities because they are reported as investing or financing activities. Exercise 12-2B Use the indirect method to determine cash flows from operating activities LO 12-1 Exercise 12-1B Use the indirect method to determine cash flows from operating activities An accountant for Farve Enterprise Companies (FEC) computed the following information by making comparisons between FEC's Year 2 and Year 1 balance sheets. Further information was determined by examining the company's Year 2 income statement. 1. The amount of an increase in the balance of a Prepaid Rent account. 2. The amount of an increase in the balance of a Treasury Stock account. 3. The amount of a decrease in the balance of the Accounts Receivable account. 4. The amount of a gain arising from the sale of land. 5. The amount of an increase in the balance of the Salaries Payable account. 6. The amount of an increase in the balance of the Bonds Payable account. 7. The amount of depreciation expense shown on the income statement. 8. The amount of cash dividends paid to the stockholders. 9. The amount of an increase in the balance of an Unearned Revenue account. 10. The amount of a decrease in the balance of an Inventory account. 11. The amount of a decrease in the balance of a Land account. Required For each item in the preceding list, indicate whether the amount should be added to or subtracted from the amount of net income when determining the amount of net cash flow from operating activities using the indirect method. Also identify any items that do not affect net cash flow from operating activities because they are reported as investing or financing activities. Exercise 12-1B Use the indirect method to determine cash flows from operating activities LO 121 An accountant for Farve Enterprise Companies (FEC) computed the following information by making comparisons between FEC's Year 2 and Year I balance sheets. Further information was determined by examining the company's Year 2 income statement. 1. The amount of an increase in the balance of a Prepaid Rent account. 2. The amount of an increase in the balance of a Treasury Stock account. 3. The amount of a decrease in the balance of the Accounts Receivable account. 4. The amount of a gain arising from the sale of land. 5. The amount of an increase in the balance of the Salaries Payable account. 6. The amount of an increase in the balance of the Bonds Payable account. 7. The amount of depreciation expense shown on the income statement. 8. The amount of cash dividends paid to the stockholders. 9. The amount of an increase in the balance of an Unearned Revenue account. 10. The amount of a decrease in the balance of an Inventory account. 11. The amount of a decrease in the balance of a Land account. For each item in the preceding list, indicate whether the amount should be added to or subtracted from Required the amount of net income when determining the amount of net cash flow from operating activities using the indirect method. Also identify any items that do not affect net cash flow from operating activities because they are reported as investing or financing activities. Drereise 1B: \begin{tabular}{|l|l|} \hline 1 & \\ \hline 2 & \\ \hline 3 & \\ \hline 4 & \\ \hline 5 & \\ \hline 6 & \\ \hline 7 & \\ \hline 8 & \\ \hline 9 & \\ \hline 10 & \\ \hline 11 & \\ \hline \end{tabular} Brercise 1B: \begin{tabular}{|l|l|} \hline 1 & \\ \hline 2 & \\ \hline 3 & \\ \hline 4 & \\ \hline 5 & \\ \hline 6 & \\ \hline 7 & \\ \hline 8 & \\ \hline 9 & \\ \hline 10 & \\ \hline 11 & \\ \hline \end{tabular}