1) Determining Net Income from Net Cash Flow from Operating Activities Sanhueza,
ID: 2501367 • Letter: 1
Question
1) Determining Net Income from Net Cash Flow from Operating Activities
Sanhueza, Inc., reported a net cash flow from operating activities of $210,800 on its statement of cash flows for the year ended December 31, 2014. The following information was reported in the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method:
Determine the net income reported by Sanhueza, Inc., for the year ended December 31, 2014.
2) The board of directors declared cash dividends totaling $197,600 during the current year. The comparative balance sheet indicates dividends payable of $53,400 at the beginning of the year and $48,100 at the end of the year.
What was the amount of cash payments to stockholders during the year?
3) The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following:
a. If sales for the current year were $609,100 and accounts receivable decreased by $42,000 during the year, what was the amount of cash received from customers?
b. If income tax expense for the current year was $43,700 and income tax payable decreased by $4,800 during the year, what was the amount of cash payments for income taxes?
Explanation / Answer
Cash Flow from Operating Activities Net Income from operating Activities 210800 Decrease in Income tax payable 4400 Decrease in Inventories -11000 Depreciation -16900 Gain on sale of iNvestment 7600 Increase in Accounts Payable -3000 Increase in prepaid expenses 1900 bleIncrease in Accounts Receiva 8300 Net Income 202100
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