Case A Year 2 Year1 Year 2 Year Case B Sales Revenue Cost of Goods Sold Gross Pr

Question

Case A Year 2 Year1 Year 2 Year Case B Sales Revenue Cost of Goods Sold Gross Profit Depreciation Expense Salaries and Wages Expense Net Income Accounts Receivable $10,100 $ 4,500 $20,100 $13,500 5,190 1,900 11,190 7,720 4,910 2,600 8,910 5,780 1,100 1,100 1,050 1,050 4,100 2,210 400 3,760 630 660 555 705 410 685 710 710 655 890 945 440 1,600 1,100 4,100 255 310 Inventory Accounts Payable Salaries and Wages Payable 955 1,110 385 Show the operating activities section of the statement of cash flows for year 2 using the indirect method (Amounts to be deducted should be indicated with a minus sign.) Case ACase B Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation Expense Changes in Assets and Liabilities (295) (155) et Cash Provided by Operating Activities(340) Accounts Receivable Inventory Accounts Payable Salaries and Wages Payable (105) 25 (55) (190)

Explanation / Answer

Case A Cash flows from operating activities Net income after tax $                                        2,210.00 Adjustments to net income     Depreciation $                           1,100.00     Decrease in accounts receivable=($255-$310) $                                 55.00     Increase in inventories=($705-$410) $                            (295.00)     Increase in accounts payable=($710-$655) $                                 55.00    Decrease in Salaries & Wages Payable($955-$1110) $                            (155.00) $                                            760.00       Net cash provided by operating activities $                                        2,970.00 Case B Cash flows from operating activities Net income after tax $                                        3,760.00 Adjustments to net income     Depreciation $                           1,050.00     Increase in accounts receivable=($660-555) $                            (105.00)     Decrease in inventories=($685-$710) $                                 25.00     Decrease in accounts payable=($890-$945) $                              (55.00)    Decrease in Salaries & Wages Payable($385-$440) $                              (55.00) $                                            860.00       Net cash provided by operating activities $                                        4,620.00

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.