Using the concepts from above, determine the cash flow from operating activities
ID: 2513150 • Letter: U
Question
Using the concepts from above, determine the cash flow from operating activities using the indirect method.
The following information is available from current period financial statements:
Net Income $527,000 Increase in A/Receivable $16,000
Patent Amortization 42,000 Increase in A/Payable 32,000
The following information is available from current period financial statements:
Net Income $120,000 Decrease in Inventory $27,000
Depreciation Expense 82,000 Amortization of Premium
on Bond Payable 1,200
The following information is available from current period financial statements:
Net Income $640,000 Decrease in Taxes Payable $80,000
Unrealized gain on Decrease in Prepaid
Trading Securities 12,000 Insurance 6,500
The following information is available from current period financial statements:
Net Income $142,000 Increase in wages payable $56,000
Decrease in interest Decrease in Dividends
payable 6,000 receivable 18,000
Explanation / Answer
STATEMENT OF CASH FLOWS Cash flow from operating activities: Net income 527000 Adjustments to reconcile net income with net cash from operating activities: Patent amortization 42000 Increase in accounts receivable -16000 Increase in accounts payable 32000 58000 Net cash from operating activities 585000 STATEMENT OF CASH FLOWS Cash flow from operating activities: Net income 120000 Adjustments to reconcile net income with net cash from operating activities: Depreciation expense 82000 Amortization of premium on bonds payable 1200 Decrease in inventory 27000 110200 Net cash from operating activities 230200 STATEMENT OF CASH FLOWS Cash flow from operating activities: Net income 640000 Adjustments to reconcile net income with net cash from operating activities: Unrealized gain on trading securities -12000 Decrease in taxes payable -80000 Decrease in prepaid insurance 6500 -85500 Net cash from operating activities 554500 STATEMENT OF CASH FLOWS Cash flow from operating activities: Net income 142000 Adjustments to reconcile net income with net cash from operating activities: Unrealized gain on trading securities -12000 Decrease in taxes payable -80000 Decrease in prepaid insurance 6500 -85500 Net cash from operating activities 56500 STATEMENT OF CASH FLOWS Cash flow from operating activities: Net income 142000 Adjustments to reconcile net income with net cash from operating activities: Increase in wages payable 56000 Decrease in interest payable -6000 50000 Net cash from operating activities 192000
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