Answered

Looking for trustworthy answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Connect with a community of experts ready to provide precise solutions to your questions quickly and accurately. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

Indirect: Computing cash from operations LO P2
MOSS COMPANY Selected Balance Sheet Information December 31, 2019 and 2018 2019 2018 Current assets Cash $ 89,650 $ 31,800 Accounts receivable 30,000 42,000 Inventory 65,000 55,100 Current liabilities Accounts payable 40,400 30,700 Income taxes payable 2,550 3,200 MOSS COMPANY Income Statement For Year Ended December 31, 2019 Sales $ 534,000 Cost of goods sold 351,600 Gross profit 182,400 Operating expenses Depreciation expense $ 46,000 Other expenses 127,000 173,000 Income before taxes 9,400 Income taxes expense 5,900 Net income $ 3,500 Use the information above to calculate cash flows from operating activities using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

Sagot :

Parrain

Answer: $60,650

Explanation:

Operating cashflows by indirect method:

Net Income                                                                                   $3,500

Add:  

Depreciation                                                         $46,000

Decrease in Accounts Receivable                      $12,000

Increase in Accounts Payable                             $ 9,700            $67,700

Less:

Increase in inventory                                          ($9,900)

Decrease in Tax payable                                    ($650)               ($10,550)

Total                                                                                               $60,650

Decrease in accounts receivable = 42,000 - 30,000 = $12,000

Increase in Acc. Payable = 40,400 - 30,700 = $9,700

Increase in inventory = 65,000 - 55,100 = $9,900

Decrease in Tax payable = 3,200 - 2,550 = $650            

We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.