Presented below is the income statement of Lisa, Inc.: Sales revenue $383,000 Cost of goods sold 227,000 Gross profit $156,000 Operating expenses 92,000 Income before income taxes 64,000 Income taxes 22,200 Net income $ 41,800 In addition, the following information related to net changes in working capital is presented: Debit Credit Cash $12,800 Accounts receivable 24,800 Inventories $19,100 Salaries payable (operating expenses) 8,300 Accounts payable 14,500 Income taxes payable 2,900 The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $3,000. (a) Prepare a schedule computing the net cash flow from operating activities by using the indirect method that would be shown on a statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -10,000 or in parenthesis e.g. (10,000).) Lisa, Inc. Statement of Cash Flows (Partial) (Indirect Method) $ Adjustments to reconcile net income to $ $ Save for Later
Presented below is the income statement of Lisa, Inc.: Sales revenue $383,000 Cost of goods sold 227,000 Gross profit $156,000 Operating expenses 92,000 Income before income taxes 64,000 Income taxes 22,200 Net income $ 41,800 In addition, the following information related to net changes in working capital is presented: Debit Credit Cash $12,800 Accounts receivable 24,800 Inventories $19,100 Salaries payable (operating expenses) 8,300 Accounts payable 14,500 Income taxes payable 2,900 The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $3,000. (a) Prepare a schedule computing the net cash flow from operating activities by using the indirect method that would be shown on a statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -10,000 or in parenthesis e.g. (10,000).) Lisa, Inc. Statement of Cash Flows (Partial) (Indirect Method) $ Adjustments to reconcile net income to $ $ Save for Later
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Presented below is the income statement of Lisa, Inc.:
In addition, the following information related to net changes inworking capital is presented:
The company also indicates thatdepreciation expense for the year was $16,700 and that the deferred tax liability account increased $3,000.
| Sales revenue | $383,000 | |
| Cost of goods sold | 227,000 | |
| Gross profit | $156,000 | |
| Operating expenses | 92,000 | |
| Income before income taxes | 64,000 | |
| Income taxes | 22,200 | |
| Net income | $ 41,800 |
In addition, the following information related to net changes in
| Debit | Credit | |||
| Cash | $12,800 | |||
| Accounts receivable | 24,800 | |||
| Inventories | $19,100 | |||
| Salaries payable (operating expenses) | 8,300 | |||
| Accounts payable | 14,500 | |||
| Income taxes payable | 2,900 |
The company also indicates that
(a)
Prepare a schedule computing the net cash flow from operating activities by using the indirect method that would be shown on a statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -10,000 or in parenthesis e.g. (10,000).)
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Lisa, Inc.
Statement of Cash Flows (Partial) (Indirect Method) |
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Adjustments to reconcile net income to
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$
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Save for Later
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