Weber Company had a $21,000 net loss from operations for 2016. Depreciation expense for 2016 was...

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Weber Company had a $21,000 net loss from operations for 2016. Depreciation expense for 2016 was $8,600 and a 2016 cash dividend of $6,000 was declared and paid. Balances of the current asset and current liability accounts at the beginning and end of 2016 follow. Did Weber Company's 2016 operating activities provide or use cash? Use the indirect method to determine your answer. Cash Accounts Receivable Inventory Prepaid Expenses Accounts Payable Accrued Liabilities Ending Beginning $3,500 $7,000 16,000 25,000 50,000 53,000 6,000 9,000 12,000 8,000 5,000 7,600 Required a. Enter the items above into the Financial Statement Effects Template. Under noncash assets, use tw separate columns for accounts receivable and inventories. Calculate the totals for each column. Transaction Cash Asset + 1 2 3 4 5 6 7 8 9 Totals + + + Accounts Receivable + Inventories + + Balance Sheet + = = = Accounts Payable + + + + Cont'd Capital + + + + + Earned Capital Revenue Income Statement Expenses = = = Net Income b. What was the company's net income for the year? € What was the cash flow from operating activities? (Use the direct method.) € c. Indicate the direction and amounts by which each of the following accounts changed during the year. If the account decreased, enter as a negative number. 1. Accounts receivable € 2. Merchandise inventory € 3. Accounts payable d. Using your results above, prepare the operating activities section of the statement of cash flows using the indirect format. Net income € Change in accounts receivable Change in inventories Change in accounts payable Cash flow from operating activities Net loss Add (deduct) items to convert net loss to cash basis Add back depreciation Subtract change in operating assets: Accounts receivable Inventory Prepaid expenses Add change in operating liabilities: Accounts payable Accrued liabilities Net cash provided by operating activities Weber Company's 2016 operating activities $ cash. Weber Company had a $21,000 net loss from operations for 2016. Depreciation expense for 2016 was $8,600 and a 2016 cash dividend of $6,000 was declared and paid. Balances of the current asset and current liability accounts at the beginning and end of 2016 follow. Did Weber Company's 2016 operating activities provide or use cash? Use the indirect method to determine your answer. Cash Accounts Receivable Inventory Prepaid Expenses Accounts Payable Accrued Liabilities Ending Beginning $3,500 $7,000 16,000 25,000 50,000 53,000 6,000 9,000 12,000 8,000 5,000 7,600 Required a. Enter the items above into the Financial Statement Effects Template. Under noncash assets, use tw separate columns for accounts receivable and inventories. Calculate the totals for each column. Transaction Cash Asset + 1 2 3 4 5 6 7 8 9 Totals + + + Accounts Receivable + Inventories + + Balance Sheet + = = = Accounts Payable + + + + Cont'd Capital + + + + + Earned Capital Revenue Income Statement Expenses = = = Net Income b. What was the company's net income for the year? € What was the cash flow from operating activities? (Use the direct method.) € c. Indicate the direction and amounts by which each of the following accounts changed during the year. If the account decreased, enter as a negative number. 1. Accounts receivable € 2. Merchandise inventory € 3. Accounts payable d. Using your results above, prepare the operating activities section of the statement of cash flows using the indirect format. Net income € Change in accounts receivable Change in inventories Change in accounts payable Cash flow from operating activities Net loss Add (deduct) items to convert net loss to cash basis Add back depreciation Subtract change in operating assets: Accounts receivable Inventory Prepaid expenses Add change in operating liabilities: Accounts payable Accrued liabilities Net cash provided by operating activities Weber Company's 2016 operating activities $ cash.

Answer rating: 100% (QA)

Net loss 21000 Add deduct items to convert net loss to cash basis Add back depreciati... View the full answer