SB Watson Company s comparative balance sheet and income statement for last year
ID: 2471580 • Letter: S
Question
SB Watson Company s comparative balance sheet and income statement for last year appear below:
Watson Company's comparative balance sheet and income statement for last year appear below:
References
Section BreakSB Watson Company s comparative balance sheet and income statement for last year appear below:
8.
value:
4.00 points
Required information
MC Qu. 90 The net cash provided by (used in) operating...
The net cash provided by (used in) operating activities last year was:
$133,000
$123,000
$87,000
$105,000
References
Multiple ChoiceDifficulty: MediumLearning Objective: 14-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.
MC Qu. 90 The net cash provided by (used in) operating...Learning Objective: 14-01 Classify cash inflows and outflows as relating to operating; investing or financing activities.
9.
value:
4.00 points
Required information
MC Qu. 91 The net cash provided by (used in) investing...
The net cash provided by (used in) investing activities last year was:
$20,000
$(119,000)
$(20,000)
$119,000
References
Multiple ChoiceDifficulty: MediumLearning Objective: 14-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.
MC Qu. 91 The net cash provided by (used in) investing...Learning Objective: 14-01 Classify cash inflows and outflows as relating to operating; investing or financing activities.
10.
value:
4.00 points
Required information
MC Qu. 92 The net cash provided by (used in) financing...
The net cash provided by (used in) financing activities last year was:
$50,000
$(99,000)
$99,000
$(50,000)
[The following information applies to the questions displayed below.]Watson Company's comparative balance sheet and income statement for last year appear below:
Explanation / Answer
The net cash provided by (used in) operating activities last year was $123,000
Statement of cash flows using the indirect method to determine the net cash provided by operating activities is as shown below:
SB Watson Company
Statement of Cash Flows
As of Dec 31,20XX
Particulars
Amount ($)
Amount ($)
Net Income
1,05,000
Add:
Depreciation
28,000
Decrease in Accounts Receivable
6,000
Increase in inventory
14,000
Increase in prepaid expense
5,000
Decrease in Accounts Payable
5,000
Increase in accrued liabilities
7,000
Increase in income tax payable
1,000
18,000
Net Cash flows from operating activities
1,23,000
Classify cash inflows and outflows as relating to operating; investing or financing activities.
SB Watson Company
Statement of Cash Flows
As of Dec 31,20XX
Particulars
Amount ($)
Amount ($)
Net Income
1,05,000
Add:
Depreciation
28,000
Decrease in Accounts Receivable
6,000
Increase in inventory
14,000
Increase in prepaid expense
5,000
Decrease in Accounts Payable
5,000
Increase in accrued liabilities
7,000
Increase in income tax payable
1,000
18,000
Net Cash flows from operating activities
1,23,000
Cash flows from investing activities:
Purchase of investments
20,000
Net Cash used in investing activities
20,000
Cash flows from financing activities:
Bonds repaid
70,000
Common Stock issued
20,000
Dividend Paid
49,000
Net Cash flows used in financing activities
99,000
Net increase/decrease in cash
4,000
Opening Cash
40,000
Closing Cash
44,000
The net cash provided by (used in) investing activities last year was $(20,000)
The net cash provided by (used in) financing activities last year was
$(99,000)
SB Watson Company
Statement of Cash Flows
As of Dec 31,20XX
Particulars
Amount ($)
Amount ($)
Net Income
1,05,000
Add:
Depreciation
28,000
Decrease in Accounts Receivable
6,000
Increase in inventory
14,000
Increase in prepaid expense
5,000
Decrease in Accounts Payable
5,000
Increase in accrued liabilities
7,000
Increase in income tax payable
1,000
18,000
Net Cash flows from operating activities
1,23,000
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