None !Required informationE12-3 (Algo) Understanding the Computation of Cash Flows from Operating Activities (Indirect Method)[LO 12-2][The following information applies to the questions displayed below.]Suppose your company sells services for $475 cash this month. Your company also pays $325 in salaries and wages,which includes $165 that was payable at the end of the previous month and $160 for salaries and wages of this month.E12-3 (Algo) Part 2, 3 and 42. Calculate the amount that should be reported as net cash flow from operating activities.3. Calculate the amount that should be reported as net income.4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2).Complete this question by entering your answers in the tabs below.Required 2 Required 3 Required 4Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities(requirement 2). (Amounts to be deducted should be indicated with a minus sign.)Net IncomeDecrease in Salaries and Wages PayableNet Cash Flow from Operating Activities$165

Answered: Image /qna-images/answer/9f5c7e6f-bb2a-4604-86cd-07dfb930d580.jpg

Answered: ! Required information E12-3 (Algo)…

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

See similar textbooks

Similar questions

Suppose your company sells goods for $300, of which $200 is received in cash and $100 is onaccount. The goods cost your company $125 and were paid for in a previous period. Your companyalso recorded salaries and wages of $70, of which only $30 has been paid in cash.Required:1. Show the journal entries to record these transactions.2. Calculate the amount that should be reported as net cash flow from operating activities.3. Calculate the amount that should be reported as net income.4. Show how the indirect method would convert net income (requirement 3) to net cash flowfrom operating activities (requirement 2).5. What general rule about converting net income to operating cash flows is revealed by youranswer to requirement 4?
Swifty Ltd. had the following 2023 income statement data: Revenues Expenses 1/1/23 Revenues $113,000 In 2023, Swifty had the following activity in selected accounts: 12/31/23 49,200 $63,800 Accounts Receivable 19,100 113,000 34,780 1,320 Write-offs 96,000 Collections Allowance for Expected Credit Losses Write-offs 1.320 Swifty Ltd. Statement of Cash Flows (Indirect Method) 1,300 1.540 1.520 1/1/23 Loss on impairment 12/31/23 Prepare Swifty's cash flows from operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a negative sign e.g. -10,000 or in parenthesis eg. (10,000).
> ABC Inc. is preparing its cash flow statement under the direct method and has provided this information: Net credit sales $5,000,000 Accounts receivable, end of the year 1,500,000 Accounts receivable, beginning of the year 2,500,000 Purchases (on account) 4,000,000 Trade payable, end of the year 1,900,000 Trade payable, beginning of the year 2,000,000 Operating expenses 3,000,000 Accrued expenses, beginning of the year 500,000 Accrued expenses, end of the year 400,000 Depreciation on property, plant, and equipment 600,000 > Required: Prepare the operating activities section of cash flow statement under the direct method.
Exercise 21-27 (Algo) Statement of cash flows; direct method [LO21-3, 21-5, 21-6, 21-8] Comparative balance sheets for 2021 and 2020, a statement of Income for 2021, and additional information from the accounting records of Red, Inc., are provided below. RED, INC. Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 Assets Cash Accounts receivable Prepaid insurance Inventory Buildings and equipment Less: Accumulated depreciation Liabilities Accounts payable Accrued liabilities Notes payable Bonds payable Shareholders' Equity Common stock Retained earnings $ 40 200 12 300 432 (135) Revenues sales revenue Expenses Cost of goods sold Depreciation expense Operating expenses Net income $ 849 $ 103 11 66 189 416 64 $ 849 RED, INC. statement of Income For Year Ended December 31, 2021 ($ in millions) $2,200 $1,467 41 601 2,109 $ 91 2020 $ 148 148 9 191 366 (256) $ 606 $ 132 19 0 0 416 39 $ 606 Additional Information from the accounting records: a. During 2021, $246…
1. PIOLO Corporation had the following account balances for 2020: 31-Dec 67,200 24,600 Accounts Payable Prepaid Rent Expense Accounts Receivable (net) 1-Jan 58,200 37,200 66,600 84,000 PIOLO's 2020 profit is P450,000. What amount should PIOLO include as net cash provided by operating activities in its 2002 statement of cash flows? a. 436,200 b. 445,200 c. 453,600 d. 454,200 2. PIOLO Company's 2020 income statement reported cost of goods sold as P135,000. Additional information is as follows: 31-Dec-20 31-Dec-19 Inventory Accounts Payable 30,000 13,000 22,500 19,500 If PIOLO uses the direct method, what amount should PIOLO report as cash paid to suppliers in its 2020 statement of cash flows? a. 121,000 b. 134,000 с. 136,000 d. 149,000 Use the following for the next three questions: PIOLO Company uses the direct method to prepare its statement of cash flows. The company had the following cash flows during 2020: Cash receipts from the issuance of ordinary shares Cash receipts from…
Income tac was $300,409 for the year. Income tac payable was $28,102 and $42,997 at the beginning and end of the year,reapectively. Cash payants for income tac reportés on the statement pc cash flots usine the direct method la a. $ 285,514 b. 315,304 c. 300,409 d. 371,508
Smith Enterprises reports the following information: Net income Depreciation expense Increase in accounts payable Increase in accounts receivable $5240000 O $5790640. O $4063360. O $6416640. O $5240000. 712640 151000 313000 Smith should report cash provided by operating activities of
13...new A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of cash flows (indirect method), this event would be reflected as a(n) addition adjustment to net income in the cash flows from operating activities section. cash outflow from investing activities. cash inflow from financing activities. cash inflow from investing activities.
2. Provide the missing piece of information for the following statement of cash flows puzzle. Cash flows from operating activities $75,000 Cash flows from ivesting activities 13,300 Cash flows from financing activities (33,000) Cash at the beginning of the year ? Cash at the end of the year 65,000 PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). Cash at the beginning of the year?
es Aim Limited has the following selected data ($ in millions): Cash balance, January 1 Financing cash flows Capital expenditures Investing cash flows Operating cash flows $ 180 1,090 (400) (500) (440) Required: 1. Calculate the balance of cash at the end of the fiscal year, December 31. 2. Calculate free cash flows. 3. Based on the pattern in cash flows, determine Aim's life cycle stage. Note: Amounts to be deducted should be indicated by a minus sign. 1. Cash balance, December 31 2. Free cash flows 3. Aim's probable life cycle stage
Refer to the financial statements of The Home Depot in Appendix A at the end of this book, ordownload the annual report from the Cases section in the Connect library.Required:1. Which of the two basic reporting approaches for the cash flows from operating activities didThe Home Depot use?a. Direct b. Indirect2. What amount of income tax payments did The Home Depot make during the year endedFebruary 2, 2014?a. $639 million c. $3,082 millionb. $2,839 million d. $12 million3. In the fiscal year ended February 2, 2014, The Home Depot generated $7,628 millionfrom operating activities. Indicate where this cash was spent by listing the two largest cashoutflows.a. Amortization ($1,757 million) and Capital Expenditures ($1,389 million)b. Share Repurchase ($8,546 million) and Capital Expenditures ($1,389 million)c. Amortization ($1,757 million) and Share Repurchase ($8,546 million)d. Dividends ($2,243 million) and Share Repurchase ($8,546 million)
Lee Company has provided the following information: • Cash flow from operating activities, $258,000 .Net Income, $186.000 • Interest expense, $38,000 Interest cash payments, $28,000 • Income tax payments, $158,000 Income tax expense, $154.000 Using the modified method discussed in the text, what was Lee's cash coverage ratio? . Multiple Choice O O 15.86 16.07 8.04 6.50

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS