Question: Use the direct method to determine cash flows from operating activities The following accounts and corresponding balances were drawn from Widjaja Company's 2012 and 2011

Use the direct method to determine cash flows from operating activities The following accounts and corresponding balances were drawn from Widjaja Company's 2012 and 2011 y ear -end balance sheets.

During the year, $68,000 of unearned revenue was recognized as having been earned. Rent expense for 2012 was $15,000.
Required
Based on this information alone, prepare the operating activities section of the statement of cash flows assuming the direct approach is used.

Account Title 2012 2011 Unearned revenue Prepaid rent $6,500 1,800 $5,000 2,400

Step by Step Solution

★★★★★

3.34 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Reconciliation of Unearned Revenue Beginning balance 5000 Increase due to collecting cash ... View full answer

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

67-B-M-A-S-C-F (271).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Use the indirect method to determine cash flows from operating activities An accountant for Golden Enterprise Companies (GEC) computed the following information by making comparisons between GECs...

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 FECs 2012...

The following accounts and corresponding balances were drawn from Pixi Companys 2014 and 2013 year-end balance sheets: The following accounts and corresponding balances were drawn from Pixi Companys...

Exercise 12-4A Use the direct method to determine cash flows from operating activities The following accounts and corresponding balances were drawn from Widjaja Company's 2012 and 2011 year-end...

Use the direct method to determine cash flows from operating activities The following accounts and corresponding balances were drawn from Hughes Company's 2012 and 2011 year-end balance sheets: The...

Use the direct method to determine cash flows from operating activities The following accounts and corresponding balances were drawn from Pizzazz Company's 2012 and 2011 year-end balance sheets:...

Use the direct method to determine cash flows from operating activities The following accounts and corresponding balances were drawn from Marinelli Company's and 2016 year-end balance sheets: The...

The direct versus the indirect method to determine cash flows from operating activities The following accounts and corresponding balances were drawn from Bryan Sports, Inc.'s 2012 and 2011 year-end...

The direct versus the indirect method of determining cash flows from operating activities The following accounts and corresponding balances were drawn from Larry Company's 2012 and 2011 y ear -end...

PROBLEM 12-14B (PART B) Problem 12-14B The direct versus the indirect method of determining cash flows from operating activities The following accounts and corresponding balances were drawn from...

A company issues a 25-year $5000 bond, redeemable at 95 with bond interest at j = 8%. The bond is callable at the end of 15 years for $3600 or at the end of 20 years for $5125. Determine the price to...

Joe's Tax Service prepares tax returns for low-to middle-income taxpayers. Its service operates January 2 through April 15 at a counter in a local grocery store. All jobs are classified into one of...

2 Samantha, an accrual basis taxpayer, subscribes to a service that updates a database used in her business. In December 2017, Samantha paid the $120,000 subscription for the period January 2017...

Acquisition, Improvements, and Sale of Realty Tonkawa Company purchased land for use as its corporate headquarters. A small factory that was on the land when it was purchased was torn down before...

Ethics and pricing. Apex Art has been requested to prepare a bid on 500 pieces of framed artwork for a new hotel. Winning the bid would be a big boost for sales representative Jason Grant, who works...

You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your two products differently, but you are unable to identify these...

Condensed financial data of Arma Inc. follow. Additional information: 1. New plant assets costing $85,000 were purchased for cash during the year. 2. Old plant assets having an original cost of...

You are the manager of BlackSpot Computers, which competes directly with Condensed Computers to sell high-powered computers to businesses. From the two businesses perspectives, the two products are...

Complementarities arise in all sorts of situations. Here is a tax evasion problem. Suppose that each of N citizens in a country needs to pay a tax of T every year to the government. Each citizen may...

Centered Publishing Company specializes in health awareness books. Because the field of health awareness is very competitive, Jay Rosenbek the companys president, maintains a strict policy about...

Ace Maintenance, Inc., repairs heavy construction equipment and vehicles. Recently, the Shanti Construction Company had one of its giant earthmovers overhauled and its tires replaced. Repair work for...

Young Joon Corp. is considering marketing two new graphing calculators, named Speed-Calc 4 and Speed-Calc 5. According to recent market research, the two products will surpass the current competition...

Please select the correct answer and show steps at how you arrived at the answer A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below. Project S: -1,100...

You want to start an organic garlic farm. The farm costs $190,000, to be paid in full immediately. Year 1 cash inflow will be $25,000, with subsequent inflows growing at a 5% annual rate until the...

Suppose a ten-year, $1,000 bond with an 8.2% coupon rate and semiannual coupons is trading for $1,034.21. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b....