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11a. Alpha\'s Company\'s Fiscal Year 2017 Statement of Cash Flows reflected info

ID: 2331074 • Letter: 1

Question

11a. Alpha's Company's Fiscal Year 2017 Statement of Cash Flows reflected information that cash provided by operating activities was $800,000. The following additional information was provided:

Depreciation Expense

$380,000

Common Stock Dividends

200,000

Accounts Receivable increase

110,000

Accounts Payable decrease

60,000

Use this information and determine Alpha Company's the Net Income (Net Loss) the 2017 Fiscal Year.

11b. Alpha's Company's Fiscal Year 2017 Statement of Cash Flows reflected information that cash provided by operating activities was $800,000. The Fiscal Year 12/31/17 Balance Sheet showed the value of Retained Earnings to be $625,000. The following additional information was provided:

Depreciation Expense

$380,000

Common Stock Dividends

200,000

Accounts Receivable increase

110,000

Accounts Payable increase

60,000

Use this information and determine Alpha Company's:

            a. the Net Income (Net Loss) the 2017 Fiscal Year.

            b. the beginning balance for Retained Earnings

Depreciation Expense

$380,000

Common Stock Dividends

200,000

Accounts Receivable increase

110,000

Accounts Payable decrease

60,000

Explanation / Answer

11a)

x + 380000-110000-60000= 800000

x +210000 = 800000

x = 800000-210000

= 590000

Net Income = 590000

11b) Beginning retained earning +Net Income -dividend = Retained earning at end

   Y+ 590000 - 200000= 625000

y + 390000= 625000

y= 625000-390000

= $ 235000

beginning balance for Retained Earnings = 235000

Net Incomw/(net loss) xx Depreciation expense 380000 Accounts Receivable increase (110000) Accounts Payable decrease (60000) cash provided by operating activities 800000