Question: InnovaTech Ltd has provided the following financial data for the year ended 31 December 2021: Net Income: 160,000 Depreciation Expense: 35,000 Increase in Accounts Receivable:

InnovaTech Ltd has provided the following financial data for the year ended 31 December 2021:

  • Net Income: £160,000
  • Depreciation Expense: £35,000
  • Increase in Accounts Receivable: £20,000
  • Decrease in Accounts Payable: £7,000
  • Increase in Inventory: £10,000
  • Purchase of Equipment: £30,000
  • Issuance of Common Stock: £70,000

Requirements:

  1. Prepare the operating activities section of the cash flow statement using the indirect method.
  2. Calculate the net cash provided by (used in) operating activities.
  3. Determine the net increase (decrease) in cash for the period.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Pumped Up Company purchased equipment from Switzerland for 140,000 francs on December 16, 20X7, with payment due on February 14, 20X8. On December 16, 20X7, Pumped Up also acquired a 60-day forward...

Q:

Retained earnings Non-current liabilities 1 400 000 1 600 000 Long-term loan 1 600 000 Current liabilities 1 000 000 Trade and other payables 976 000 Income tax payable 24 000 Total equity and...

Q:

Additional information All purchases of inventories are on credit. The selling and administrative expenses include depreciation of R320 000. Property, plant and equipment were purchased during the...

Q:

Retained earnings Non-current liabilities 1 400 000 1 600 000 Long-term loan 1 600 000 Current liabilities 1 000 000 Trade and other payables 976 000 Income tax payable 24 000 Total equity and...

Q:

Probability sampling uses random selection to assure members of a population have an equal chance of being chosen. Question 3 options: a) True b) False

Q:

You are given original financial statements of an industrial company as follows. Balance Sheet (in Millions, except for Per-Share Data) Year Ended 31 December 2008 2007 Assets Current assets Cash and...

Q:

What is the correct answers in b) and c), thank you. You are given original financial statements of an industrial company as follows. Balance Sheet (in Millions, except for Per-Share Data) Year Ended...

Q:

You are given original financial statements of an industrial company as follows. Balance Sheet (in Millions, except for Per-Share Data) Year Ended 31 December 2008 2007 Assets Current assets Cash and...

Q:

You are given original financial statements of an industrial company as follows. Balance Sheet (in Millions, except for Per-Share Data) Year Ended 31 December 2008 2007 Assets Current assets Cash and...

Q:

Year 1 15) Journey Corporation has provided the following financial data Balance Sheet December 31, Year 2 nd Year 1 Assets Year 2 Current assets Cash $ 156.000 Accounts receivable, net 268.000...

Q:

can u teach me the whole solutions, plzzzz. the details plz Selected financial statements of NBS Ltd are shown below + NBS LTD Statement of Profit or Loss and Other Comprehensive Income For the year...

Q:

The following T-accounts record the operations of Waterway Co.: Beginning Balance Ending Balance Beginning Balance Direct Material Direct Labor Overhead Ending Balance Beginning Balance COGM Ending...

Q:

Consider the function 1. Write the function in terms of unit step functions. f(t)=0 (Notation: write u(t-c) for the unit step function u(t) with step at t = c.) 2. Find the Laplace transform of f(t)...

Q:

Which of the following actions best illustrates the second step of Kotter's change model in Sappi s case? a . Developing a change vision b . Establishing a sense of urgency c . Creating a guiding...

Q:

Two possible reactions of MnO 4 with H 2 O 2 to produce O 2 and Mn 2 are (a) Complete the half-reactions for both schemes by adding e - , H 2 O, and H - and write a balanced net equation for each...

Q:

Consider the following hypothesis test: H 0 : u 25 H : u > 25 a Sample of 40 provided a sample mean of 26.4. The population standard deviation is 6. a. Compute the value of the test statistic. b....

Q:

When 25.00 mL of unknown were passed through a Jones reductor, molybdate ion (MoO 2- 4 ) was converted into Mo 3+ . The filtrate required 16.43 mL of 0.010 33 M KMnO 4 to reach the purple end point....

Q:

The accompanying combined statement of revenues, expenditures, and fund balance was drawn from the statements of Plant City, Florida, which, of course, included a general and other funds that are not...

Q:

Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, No. 5888 for $ 1,028.05 and No. 5893 for $ 494.25. The...

Q:

Design a minimum-mass symmetric three-bar truss (the area of member 1 and that of member 3 are the same) to support a load P, as was shown in Fig. 2.9. The following notation may be used: Pu = P cos...

Q:

If the APT is to be a useful theory, the number of systematic factors in the economy must be small. Why? P-69

Q:

Develop a PPB solution and calculate total relevant costs for the data in the preceding table. P ...

Q:

Multifactor models seek to improve the explanatory power of single-factor models by explicitly accounting for the various components of systematic risk. These models use indicators intended to...