XYZ Corp. began operations on January 1, 2016. Below are selected data from XYZ
ID: 2338778 • Letter: X
Question
XYZ Corp. began operations on January 1, 2016. Below are selected data from XYZ Corp.'s balance sheets as of December 31, 2016 and December 31, 2017.
Account December 31, 2016 December 31, 2017
Cash 20,000 35,000
Accounts Receivable 10,000 33,000
Equipment 100,000 109,000
Less: Accumulated Depreciation(10,000) (20,000)
Current Liabilities 3,000 4,000
XYZ also provided the following additional information:
During 2017, XYZ bought $20,000 of equipment.
During 2017, XYZ sold equipment with a cost of $12,000 and accumulated depreciation of $5,000 for a $2,000 gain.
Net income for 2017 was $55,000.
Complete the following operating activities section using the indirect method that will be shown on XYZ's Statement of Cash Flows for the year ended December 31, 2017. Use a minus sign to indicate that an adjustment results in a subtraction (i.e. if you want to indicate that $1,000 is subtracted, enter "-1000").
Cash flows from operating activities
Net income --( )
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense ( )--
Gain on sale of equipment ( )--
Increase in accounts receivable ( )--
Increase in current liabilities ( ) ( )
Net cash provided by operating activities--( )
Explanation / Answer
Complete the following operating activities section using the indirect method that will be shown on XYZ's Statement of Cash Flows for the year ended December 31, 2017.
Cash flows from operating activities Net income 55000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense 10000 Gain on sale of equipment -2000 Increase in accounts receivable -23000 Increase in current liabilities 1000 -14000 Net cash flow from operating activities 41000Related Questions
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