Exercise 12-3 Pharoah Company reported net income of $184,850 for 2017. Pharoah
ID: 2542602 • Letter: E
Question
Exercise 12-3
Pharoah Company reported net income of $184,850 for 2017. Pharoah Company also reported depreciation expense of $33,700 and a loss of $4,690 on the disposal of plant assets. The comparative balance sheets show an increase in accounts receivable of $15,150 for the year, a $15,640 increase in accounts payable, and a $4,030 increase in prepaid expenses.
Prepare the operating activities section of the statement of cash flows for 2017. Use the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Adjustments to reconcile net income to
Pharoah CompanyPartial Statement of Cash Flows
December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Prepaid Expenses Depreciation Expense Gain on Disposal of Plant Assets Increase in Accounts Payable Increase in Accounts Receivable Increase in Prepaid Expenses Loss on Disposal of Plant Assets Net Income
$Adjustments to reconcile net income to
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Prepaid Expenses Depreciation Expense Gain on Disposal of Plant Assets Increase in Accounts Payable Increase in Accounts Receivable Increase in Prepaid Expenses Loss on Disposal of Plant Assets Net Income
$Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Prepaid Expenses Depreciation Expense Gain on Disposal of Plant Assets Increase in Accounts Payable Increase in Accounts Receivable Increase in Prepaid Expenses Loss on Disposal of Plant Assets Net Income
Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Prepaid Expenses Depreciation Expense Gain on Disposal of Plant Assets Increase in Accounts Payable Increase in Accounts Receivable Increase in Prepaid Expenses Loss on Disposal of Plant Assets Net Income
Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Prepaid Expenses Depreciation Expense Gain on Disposal of Plant Assets Increase in Accounts Payable Increase in Accounts Receivable Increase in Prepaid Expenses Loss on Disposal of Plant Assets Net Income
Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Prepaid Expenses Depreciation Expense Gain on Disposal of Plant Assets Increase in Accounts Payable Increase in Accounts Receivable Increase in Prepaid Expenses Loss on Disposal of Plant Assets Net Income
Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash used by Financing Activities Net Cash used by Investing Activities Net Cash used by Operating Activities Net Decrease in Cash Net Increase in Cash
$Explanation / Answer
Prepare the operating activities section of the statement of cash flows for 2017. Use the indirect method
Net income 184850 Adjustment to reconcile net income Depreciation expense 33700 Loss on disposal of plant assets 4690 Changes in current assets and liabilities increase in accounts receivable (15150) increase in accounts payable 15640 increase in prepaid expenses (4030) Net cash flow from operating activities 219700Related Questions
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