Company A had the following information available at the end of the most recent fiscal year: Net Income $2,000 Depreciation Expense $500 A/R Increase $600 A/P Increase 400 What is the cash flow from operations?

Company A had the following information available at the end of the most recent fiscal year: Net Income $2,000 Depreciation Expense $500 A/R Increase $600 A/P Increase 400 What is the cash flow from operations?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 13MCQ

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Fitz Company reports the following information Selected Annual Income Statement Data income $ Depreciation expense 44,000 Amortization expense7.200 Gain on sale of plant assets 6,000 Selected Year-End Balance Data Accounts receivable decrease $ Inventory decrease 42,000 Prepaid expenses increase 4,700 Accounts payable decrease8,200 Salaries payable increase 1,200 Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. (Amounts to be deducted should be indicated with a minus sign.)
Fitz Company reports the following information. Selected Annual Income Statement Data Net income Depreciation expense Amortization expense Gain on sale of plant assets Selected Year-End Balance Sheet Data $ 421,000 Accounts receivable decrease 48,600 Inventory decrease 7,300 Prepaid expenses increase 7,900 Accounts payable decrease Salaries payable increase $ 133,100 44,500 7,000 10,300 1,800 Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. 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
Cash Flows from (Used for) Operating Activities The income statement disclosed the following items for the year: Depreciation expense $42,700 Gain on disposal of equipment 24,890 Net income 328,300 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $6,650 Inventory (3,780) Prepaid insurance (1,420) Accounts payable (4,510) Income taxes payable 1,420 Dividends payable 1,000 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial)
Fitz Company reports the following information. Selected Annual Income Statement Data Net income Depreciation expense Amortization expense Gain on sale of plant assets Selected Year-End Balance Sheet Data $ 412,000 Accounts receivable decrease 47,000 Inventory decrease 7,300 Prepaid expenses increase 6,200 Accounts payable decrease Salaries payable increase $ 123,200 50,500 5,800 9,000 2,200 Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. (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 $
Cash Flows from (Used for) Operating Activities The income statement disclosed the following items for the year: Depreciation expense $44,100 Gain on disposal of equipment 25,740 Net income 339,800 The changes in the current asset and liability accounts for the year are as follows: Increase(Decrease) Accounts receivable $6,870 Inventory (3,910) Prepaid insurance (1,470) Accounts payable (4,660) Income taxes payable 1,470 Dividends payable 1,030 Question Content Area a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. blankStatement of Cash Flows (partial) Cash flows from (used for) operating activities: $- Select - Adjustments to reconcile net income to net cash flows from (used for) operating activities: - Select -…
Cash Flows from (Used for) Operating Activities The income statement disclosed the following items for the year: Depreciation expense $41,700 Gain on disposal of equipment 24,350 Net income 312,200 The changes in the current asset and liability accounts for the year are as follows: Increase(Decrease) Accounts receivable $6,500 Inventory (3,700) Prepaid insurance (1,390) Accounts payable (4,410) Income taxes payable 1,390 Dividends payable 970 Question Content Area a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: $- Select - Adjustments to reconcile net income to net cash flows from (used for) operating activities: - Select - -…
If the statement of cash flows shows the following, what is cash from operating activities? Profit for the year $97,500 Depreciation 40,000 Adjustments in non-cash working capital accounts (11,000)
Fitz Company reports the following information. Use the indirect method to prepare the operating activi- ties section of its statement of cash flows for the year ended December 31. Selected Annual Income Statement Data Net income .. Depreciation expense Amortization expense.. Gain on sale of plant assets. Selected Year-End Balance Sheet Data $374,000 44,000 Accounts receivable decrease.. $17,100 Inventory decrease..... Prepaid expenses increase.. Accounts payable decrease Salaries payable increase.. 42,000 7,200 4,700 6,000 8,200 1,200
Cash Flows from (Used for) Operating Activities The income statement disclosed the following items for the year: Depreciation expense Gain on disposal of equipment Net income The changes in the current asset and liability accounts for the year are as follows: Accounts receivable Inventory Prepaid insurance Accounts payable Income taxes payable Dividends payable Increase (Decrease) $5,700 (3,240) (1,220) (3,860) 1,220 850 $36,600 21,330 218,400 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Us minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation expense Statement of Cash Flows (partial) Gain on disposal of equipment ✓ Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in accounts payable Increase in income taxes payable Net cash flows from operating activities Feedback 542,000 57,000 -24,000 -9,800 5,550 1,000 -3,700 1,440 X
The following details are provided by a manufacturing company: Investment Useful life Estimated annual net cash inflows for first year Estimated annual net cash inflows for second year Estimated annual net cash inflows for next ten years Residual value Product line OA. 2.74 years OB. 6.36 years O c. 6.71 years OD. 2.24 years $1,030,000 12 years $460,000 $430,000 $190,000 $50,000 Depreciation method Straight-line 12% Required rate of return Calculate the payback period for the investment. (Round your answer to two decimal places.) ...
Cash Flows from Operating Activities—Indirect Method The income statement disclosed the following items for the year: Depreciation expense $44,700 Gain on disposal of equipment 26,060 Net income 394,500 The changes in the current asset and liability accounts for the year are as follows: Increase(Decrease) Accounts receivable $6,960 Inventory (3,960) Prepaid insurance (1,490) Accounts payable (4,720) Income taxes payable 1,490 Dividends payable 1,040 a. Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.