Alpenrose Corporation’s comparative balance sheet for current assets and liabili

Question

Alpenrose Corporation’s comparative balance sheet for current assets and liabilities was as follows:

Dec. 31, 2016

Dec. 31, 2015

Adjust net income of $211,930 for changes in operating assets and liabilities to arrive at net cash flow from operating activities

The section of the statement of cash flows that reports the cash transactions affecting the determination of net income.

. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.

In CengageNOW, an Amount Description is a text entry other than an Account that has an amount associated with it.

Net cash flow from operating activities

Adjust net income of $211,930 for changes in operating assets and liabilities to arrive at net cash flow from operating activities

The section of the statement of cash flows that reports the cash transactions affecting the determination of net income.

. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.

Question not attempted.

1

Net income

2

Adjustments to reconcile net income to net cash flow from operating activities:

3

Changes in current operating assets and liabilities:

4

5

6

7

Solution

1

Net income

2

Adjustments to reconcile net income to net cash flow from operating activities:

3

Changes in current operating assets and liabilities:

4

5

6

7

Dec. 31, 2016

Dec. 31, 2015

Accounts receivable $27,670 $31,340 Inventory 17,180 16,090 Accounts payable 16,510 14,340 Dividends payable 49,250 51,850

Explanation / Answer

Ans-

*Dividend has no effect on cash flow from oparating activities

Details $ Net income        211,930 Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Decrease in accounts receivable             3,670 Increase in accounts payable             2,170 Increase in inventory           (1,090) Cash Flow from operating activities        216,680

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