The list includes all balance sheet accounts related to cash from operating acti

Question

The list includes all balance sheet accounts related to cash from operating activities.

For each of the above separate cases X, Y, and Z, compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

Case X Case Y Case Z Net income $ 4,400 $ 110,000 $ 79,200 Depreciation expense 33,000 8,800 26,400 Accounts receivable increase (decrease) 44,000 22,000 (4,400 ) Inventory increase (decrease) (22,000 ) (11,000 ) 11,000 Accounts payable increase (decrease) 26,400 (24,200 ) 15,400 Accrued liabilities increase (decrease) (48,400 ) 13,200 (8,800 )

For each of the above separate cases X, Y, and Z, compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

Cash Flows from Operating Activities (Indirect) Case X Case Y Case Z Net Income $4,400 $110,000 $79,200 Adjustments to reconcile net income to net cash provided by operations: Depreciationselected answer correct 33,000selected answer correct 8,800selected answer correct 26,400selected answer correct Accounts receivableselected answer correct 44,000selected answer incorrect 22,000selected answer incorrect 4,400selected answer correct Inventoriesselected answer correct 22,000selected answer correct 11,000selected answer correct 11,000selected answer incorrect Accounts payableselected answer correct 26,400selected answer correct 24,200selected answer incorrect 15,400selected answer correct Accrued liabilitiesselected answer correct 48,400selected answer incorrect 13,200selected answer correct 8,800selected answer incorrect Cash provided by (used for) operating activitiesselected answer correct $178,200 $189,200 $145,200

Explanation / Answer

Cash Flows from Operating Activities (Indirect)

Case X

Case Y

Case Z

Net Income

$4,400

$110,000

$79,200

Adjustments to reconcile net income to net cash provided by operations:

Add:- Depreciation

33,000

8,800

26,400

Less:- Increase in Accounts Receivable

(44,000)

(22,000)

-

Add:- Decrease in Account Receivable

--

-

4400

Less:- Increase in Inventories

(11,000)

Add:- Decrease in Inventories

22,000

11,000

-

Add:- Increase in Accounts payables

26,400

-

15,400

Less:- Decrease in Account Payable

(24200)

Add:- Increase in Accrued liabilities

-

13,200

-

Less:- Decrease in Accrued Liabilities

(48,400)

-

(8,800)

Cash provided by (used for) operating activities

(6600)

96,800

1,05,600

Cash Flows from Operating Activities (Indirect)

Case X

Case Y

Case Z

Net Income

$4,400

$110,000

$79,200

Adjustments to reconcile net income to net cash provided by operations:

Add:- Depreciation

33,000

8,800

26,400

Less:- Increase in Accounts Receivable

(44,000)

(22,000)

-

Add:- Decrease in Account Receivable

--

-

4400

Less:- Increase in Inventories

(11,000)

Add:- Decrease in Inventories

22,000

11,000

-

Add:- Increase in Accounts payables

26,400

-

15,400

Less:- Decrease in Account Payable

(24200)

Add:- Increase in Accrued liabilities

-

13,200

-

Less:- Decrease in Accrued Liabilities

(48,400)

-

(8,800)

Cash provided by (used for) operating activities

(6600)

96,800

1,05,600

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