On the indirect statement of cash flows, $500,000 relating to notes payable was subtracted from net income to get indirect cash flow from operations. This must mean that: Notes payable were $500,000 at the beginning of the year. O Notes payable were $500,000 at the end of the year. Incorrect. Notes payable increased by $500,000 over the year. Notes payable decreased by $500,00o over the year.
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- Using the Exhibit below, assume that the balance of Accounts Receivable was $61,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Receivable is $62,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts receivable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on…If Accounts receivable decrease by R.O.50,000 Income reported on the income statement for the year was R.O1,500,000. Excluding of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows isConcord Corporation had the following transactions that took place during the year: I. Recorded credit sales of $3050 I. Collected $1830 from customers III. Recorded sales returns of $610 and credited the customer's account. What is the total effect of these transactions on free cash flow? Cannot be determined O Increase Decrease O No Effect
- The cash flows from (used for) operating activities are reported by the direct method on the statement of cash flows. Determine the following: a. If sales for the current year were $558,800 and accounts receivable decreased by $39,700 during the year, what was the amount of cash received from customers?$fill in the blank 1 b. If income tax expense for the current year was $38,900 and income tax payable decreased by $4,500 during the year, what was the amount of cash paid for income taxes?$fill in the blank 2 c. Briefly explain why the cash received from customers in part (a) is different from sales.Because the customers paid than the amount of sales for the period, cash received from customers sales made on account by $39,700 during the current year.2. Accounts receivable arising from trade transactions amounted to $62,000 and $78,000at the beginning and end of the year, respectively. Net income reported on the incomestatement for the year was $125,000. Exclusive of the effect of other adjustments, thecash flows from operating activities to be reported on the statement of cash flowsprepared by the indirect method are:a. $109,000b. $141,000c. $125,000d. $140,000Using the Exhibit below, assume that the balance of Accounts Payable was $60,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Payable is $65,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts payable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of…
- Sheridan Company completed its first year of operations on December 31. 2022. It initial income statement showed that Sheridan had sales revenue of $190,900 and operating expenses of $73,200. Accounts receivable and accounts payable at year-end were $63,900 and $31,600 respectively. Assume that accounts payable related to operating expenses. Inore income taxes. Compute net cash provided by operating activities using the direct method. (Show amo wnts that decrease cosh fow with either a sign eg 1s oog orinparenthesises (15,000) Net cash provided by operating activitiesUsing the Exhibit below, assume that the balance of Accounts Payable was $50,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Payable is $35,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts payable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of…Accounts receivable from sales transactions were $45,634 at the beginning of the year and $60,027 at the end of the year. Net income reported on the income statement for the year was $126,710. Exclusive of the effect of other adjustments, the net cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would be a. $126,710 b. $112,317 c. $14,393 d. $141,103
- The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following:a. If sales for the current year were $753,500 and accounts receivable decreased by $48,400 during the year, what was the amount of cash received from customers?b. If income tax expense for the current year was $50,600 and income tax payable decreased by $5,500 during the year, what was the amount of cash payments for income taxes?c. Briefly explain why the cash received from customers in (a) is different from sales.Net income is OMR 132000, accounts payable increased OMR 10000 during the year, inventory decreased OMR 6000 during the year, and accounts receivable increased OMR 12000 during the year. Under the direct method, what is net cash provided by operating activities? a- OMR. 102000 b- OMR. 112000 c- OMR. 124000 d-OMR. 136000Accounts receivable from sales transactions were $45,582 at the beginning of the year and $68,677 at the end of the year. Net income reported on the income statement for the year was $142,695. Exclusive of the effect of other adjustments, the net cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would be a.$23,095 b.$119,600 c.$165,790 d.$142,695