Net Income 43,000 6,000 Depreciation Expense Balance Sheet Increase in Accounts

Question

Net Income 43,000 6,000 Depreciation Expense Balance Sheet Increase in Accounts Receivable Decrease in Accounts Payable 6,000 2,000 Compute DVR's net cash provided by operating activities--indirect method. S16-5 Computing cash flows from operating activities-indirect method Learning Object Winding Road Cellular accountants have assembled the following data for the year ended April 30, 2018: Cash receipt from sale of land Depreciation expense Cash payment of dividends Cash receipt from issuance of common stock $ 27,000 2,000 5,800 17,000 Net income Cash purchase of equipment Decrease in current liabilities Increase in current assets other than cash 55,000 44,000 20,000 27,000 Prepare the operating activities section using the indirect method for Winding Road Cellular's statement of cash flows for the year ended April 30, 2018. Note: Short Exercise S16-5 must be completed before attempting Short Exercise S16-6 S16-6 Computing cash flows from investing and financing activities Learning Objecti Use the data in Short Exercise S16-5 to complete this exercise. Prepare Winding Road [ellular's statement of cash flows using the indirect method for the year ended April Lndi ash are $48,000 and $52,200, respectively

Explanation / Answer

S16-5 Cash flows from operating activities: Net Income 55000 Add: Depreciation Expense 2000 Less: Decrease in current liabilities 20000 Less: Increase in current assets other than cash 27000 Cash flow from operating activities 10000 S16-7 Requirement 1: Computation of Acquisition of plant assets: Plant assets as at the end of 2018 105350 Less: Plant Assets as at the end of 2017 84350 Acquisition of plant assets 21000 Requirement 2: Computation of payment of long term note payable: Long term notes payable as at the end of 2017 12000 Long term notes payable issued 4400 Less: Long term notes payable as at the end of 2018 9000 Payment of long term notes payable 7400

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