The net income reported on the income statement for the current year was $371,00
ID: 2466731 • Letter: T
Question
The net income reported on the income statement for the current year was $371,000. Depreciation recorded on store equipment for the year amounted to $16,880. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
End of Year
Beginning of Year
Required:
A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year.
Briefly explain why net cash flow from operating activities is different than net income.
In CengageNOW, an Amount Description is a text entry other than an Account that has an amount associated with it.
Net loss
A. Prepare the Cash Flows from Operating Activities section of the statement of cash flows
A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year.
, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.
Question not attempted.
Statement of Cash Flows (partial)
1
Cash flows from operating activities:
2
3
Adjustments to reconcile net income to net cash flow from operating activities:
4
5
Changes in current operating assets and liabilities:
6
7
8
9
10
11
End of Year
Beginning of Year
Cash $42,300 $40,040 Accounts receivable (net) 29,570 28,890 Merchandise inventory 39,370 45,670 Prepaid expenses 4,990 3,520 Accounts payable (merchandise creditors) 40,340 36,430 Wages payable 22,090 24,330Explanation / Answer
Ans-
Details $ Net income 371,000 Adjustments to reconcile net income to net cash flow from operating activities: Depriciation 16,880 Changes in current operating assets and liabilities: Increase in accounts receivable -680 Increase in accounts payable 3,910 Decrease in inventory 6,300 Decrease in Wages Payable -2,240 Increase in Prepaid Exp. -1,470 Cash Flow from opearating activities 393,700Related Questions
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