Big Horn Company reported net income of $3,200 for the current year. The company
ID: 2480370 • Letter: B
Question
Big Horn Company reported net income of $3,200 for the current year. The company's income statement shows depreciation expense of $750. Balances for the company's current asset and current liability accounts at the beginning and end of the year are as follows:
End of year
Beginning of year
Cash
$220
$150
Accounts receivable
170
320
Inventory
550
650
Prepaid expenses
75
50
Accounts payable
140
180
Income taxes payable
6
12
When the statement of cash flows is prepared, Big Horn Company will show operating cash flows of
$2,629.
$3,379.
$4,129.
$4,229.
none of the above
Consider the following transactions:
Paid interest with cash $10
Paid cash dividends $45
Sold common stock for cash $1,200
Purchased treasury stock for cash $360
Sold bonds for cash $800
What amount will be reported as the net cash inflow from financing activities?
$850
$1,560
$1,595
$1,685
none of the above
End of year
Beginning of year
Cash
$220
$150
Accounts receivable
170
320
Inventory
550
650
Prepaid expenses
75
50
Accounts payable
140
180
Income taxes payable
6
12
Explanation / Answer
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ANSWER NON OF THE ABOVE
DESCRIPTION AMOUNT AMOUNT NET INCOME $3200 ADD DEPRICIATION AS NON CASH ITEM $750 ADD DECEREASE IN ACCOUNTS RECEIVABLE $150 ADD DECEREASE IN INVENTORY $100 LESS INCEREASE IN PREPAID EXPENSES ($25) LESS DECEREASE IN ACCOUNTS PAYABLE ($40) LESS DECEREASE IN TAX PAYABLE ($6) $179 NET CASH FROM OPERATING CASH FLOW $4129Related Questions
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