edugen.willeyplus.com Kimmel, Accounting, 6e Help l ENT RESOURCES Exercise 12-4
ID: 2397502 • Letter: E
Question
edugen.willeyplus.com Kimmel, Accounting, 6e Help l ENT RESOURCES Exercise 12-4 wk due July 5th Revlew 12-1 Review 12-2 Your answer is partially correct. Try again The current sections of Teal Mountain Inc.'s balance sheets at December 31, 2016 and 2017, are presented here. Teal $27,594 m 12-9A 2017 2016 Current assets core Results by Study 107,310 101,178 Cash Accounts receivable Inventory Prepaid expenses 81,760 171,696 27,594 $388,360 90,958 175,784 22,484 $390,404 Total current assets Current labilities Accrued expenses payable Accounts payable 15,330 86,870 $102,200 5,110 94,024 $99,134 Total current abilities Prepare the net cash provided (used) by operating activities section of the company's statement of cash flows for the y that decrease cash flow with either a -sign e.g.-15,000 or in parenthesis e.g. (15,000).) Teal Mountain Inc. Partial Statement of Cash Flows Cash Flows from Operating Activities Net Income 156366 Adjustments to reconcile net income to Net Cash used by Financing Activities Depreciation Expense 27594Explanation / Answer
Less: Decrease in Current Liabilities & increase in Current assets
Notes:
-Cash flow is about flow of cash in the company . So, any non cash expense should be added back.
- Figure of income and depreciation is taken fron the solution below the question assuming the same has been cut off during uploading of question. If there is any change in figure pl do it accordingly.
Cash flow from operating Activities Particulars Amount ($) Net Income $ 156,366 Add Non Cash expense Depreciation 27,594 Cash Profit(A) 183,960 Add: Increase in Current Liabilities & Decrease in Current assets Account expenses Payable (15330-5110) 10,220 Account receivable (90958-81760) 9,198 Inventory (175784-171696) 4,088 Total (B) 23,506Less: Decrease in Current Liabilities & increase in Current assets
Accounts Payable (86870-94024) (7,154) Prepaid Expenses (22484-27594) (5,110) Total © (12,264) Cash flow from operating activities (A+B+C) 195,202Related Questions
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