Determining Net Income from Net Cash Flow from Operating Activities Sanhueza, In
ID: 2381358 • Letter: D
Question
Determining Net Income from Net Cash Flow from Operating Activities
Sanhueza, Inc., reported a net cash flow from operating activities of $200,600 on its statement of cash flows for the year ended December 31, 2014. The following information was reported in the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method:
Determine the net income reported by Sanhueza, Inc., for the year ended December 31, 2014.
$
Determining Net Income from Net Cash Flow from Operating Activities
Sanhueza, Inc., reported a net cash flow from operating activities of $200,600 on its statement of cash flows for the year ended December 31, 2014. The following information was reported in the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method:
Decrease in income taxes payable $4,800 Decrease in inventories 11,900 Depreciation 18,300 Gain on sale of investments 8,200 Increase in accounts payable 3,300 Increase in prepaid expenses 2,000 Increase in accounts receivable 9,000Determine the net income reported by Sanhueza, Inc., for the year ended December 31, 2014.
$
Explanation / Answer
Cash flow from operating activities
200600
Add:
Decrease in income taxes payable
$4,800
Less:
Decrease in inventories
(11,900)
Less:
Depreciation
(18,300)
Add:
Gain on sale of investments
8,200
Less:
Increase in accounts payable
(3,300)
Add:
Increase in prepaid expenses
2,000
Add:
Increase in accounts receivable
9,000
Net income
191100
Cash flow from operating activities
200600
Add:
Decrease in income taxes payable
$4,800
Less:
Decrease in inventories
(11,900)
Less:
Depreciation
(18,300)
Add:
Gain on sale of investments
8,200
Less:
Increase in accounts payable
(3,300)
Add:
Increase in prepaid expenses
2,000
Add:
Increase in accounts receivable
9,000
Net income
191100
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