Net Cash Flow From Operating Activities Verna Company's records provided the following information for 2019: decrease in accounts payable, $4,900 loss on sale of land, $1,900 increase in inventory, $7,100 increase in income taxes payable, $2,000 net income, $66,100 patent amortization expense, $1,000 ordinary loss, $6,500 decrease in deferred taxes payable, $2,400 amortization of discount on bonds payable, $1,900 payment of cash dividends, $28,000 depletion expense, $4,700 decrease in salaries payable, $1,800 decrease in accounts receivable, $3,800 gain on sale of equipment, $6,200 proceeds from issuance of stock, $60,000 ordinary gain, $3,200 depreciation expense, $13,000 amortization of discount on investment in bonds, $1,100 Required Prepare the operating activities section of Verna's 2019 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash.
Net Cash Flow From Operating Activities Verna Company's records provided the following information for 2019: decrease in accounts payable, $4,900 loss on sale of land, $1,900 increase in inventory, $7,100 increase in income taxes payable, $2,000 net income, $66,100 patent amortization expense, $1,000 ordinary loss, $6,500 decrease in deferred taxes payable, $2,400 amortization of discount on bonds payable, $1,900 payment of cash dividends, $28,000 depletion expense, $4,700 decrease in salaries payable, $1,800 decrease in accounts receivable, $3,800 gain on sale of equipment, $6,200 proceeds from issuance of stock, $60,000 ordinary gain, $3,200 depreciation expense, $13,000 amortization of discount on investment in bonds, $1,100 Required Prepare the operating activities section of Verna's 2019 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter6: Statement Of Cash Flows
Section: Chapter Questions
Problem 20E
Related questions
Question
Net Cash Flow From Operating Activities
Verna Company's records provided the following information for 2019:
- decrease in accounts payable, $4,900
- loss on sale of land, $1,900
- increase in inventory, $7,100
- increase in income taxes payable, $2,000
- net income, $66,100
- patent amortization expense, $1,000
- ordinary loss, $6,500
- decrease in
deferred taxes payable, $2,400 - amortization of discount on bonds payable, $1,900
- payment of cash dividends, $28,000
- depletion expense, $4,700
- decrease in salaries payable, $1,800
- decrease in accounts receivable, $3,800
- gain on sale of equipment, $6,200
- proceeds from issuance of stock, $60,000
- ordinary gain, $3,200
- depreciation expense, $13,000
- amortization of discount on investment in bonds, $1,100
Required
Prepare the operating activities section of Verna's 2019 statement of cash flows using the indirect method. Use a minus sign to indicate
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning