ement ror Tremblant umited is presented here TREMBLANT LIMITED Year Ended Decemb
ID: 2513776 • Letter: E
Question
ement ror Tremblant umited is presented here TREMBLANT LIMITED Year Ended December 31, 2015 Service revenue Operating expenses Profit from operations Interest expense Profit before income tax Income tax expense Profit $924,500 710,600 213,900 75,510 138,390 38,240 $100,150 Tremblant's statement of financial position contained these comparative data at December 31: 2015 2014 Accounts receivable Prepaid expenses Accounts payable Salaries payable Unearned revenue Interest payable Income tax payable $56,360 12,570 34,110 17,870 11,970 6,660 4,800 $51,410 15,470 42,510 21,760 8,300 4,880 9,810 Additional Information: Operating expenses include depreciation expense,?49,910; amortization expense, $15,100; administrative expenses, $119,600; salaries expense, Unearned revenue is received from customers. Prepaid expenses and accounts payable relate to operating (administrative) expenses. 500, 610; and loss on the disposal of equipment, $25,380 1. 2. 3. Prepare the operating activities section of the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000 or in parenthesis e.g. (45,000).)Explanation / Answer
Tremblant Limited
Statement of Cash Flows (Partial)- Indirect Method
Year Ended December 31, 2015 (Amounts in $)
Operating Activities Profit (A) 100,150 Adjustments to reconcile profit to net cash provided by operating activities: Depreciation Expense 49,910 Amortization Expense 15,100 Loss on sale of Equipment 25,380 Increase in Interest payable ($6,660-$4,880) 1,780 Increase in Accounts Receivable ($56,360-$51,410) -4,950 Decrease in Prepaid Expenses ($15,470-$12,570) 2,900 Decrease in Accounts Payable ($42,510-$34,110) -8,400 Decrease in Salaries payable ($21,760-$17,870) -3,890 Increase in Unearned Revenue ($11,970-$8,300) 3,670 Decrease in Income tax payable ($9,810-$4,800) -5,010 Total of Adjustments (B) 76,490 Net Cash Provided by Operating Activities (A+B) 176,640Related Questions
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