(Learning Objective 3: Prepare operating cash flows—indirect method) Eldred Corp
ID: 2584375 • Letter: #
Question
(Learning Objective 3: Prepare operating cash flows—indirect method) Eldred Corporation accountants have assembled the following data for the year ended June 30, 2012:
Net income
$ ?
Payment of dividends
5,500
Proceeds from the issuance of common stock
15,000
Sales revenue
222,000
Increase in current assets other than cash
32,000
Purchase of treasury stock
8,000
Cost of goods sold
$114,000
Other operating expenses
39,000
Purchase of equipment
37,000
Increase in current liabilities
11,000
Payment of note payable
29,000
Proceeds from sale of land
31,000
Depreciation expense
6,000
Prepare the operating activities section of Eldred’s statement of cash flows for the year ended June 30, 2012. Eldred uses the indirect method for operating cash flows. PLEASE CHART ON COMPUTER. NO HAND WRITTEN DATA PLEASE! THANK YOU.
Net income
$ ?
Payment of dividends
5,500
Proceeds from the issuance of common stock
15,000
Sales revenue
222,000
Increase in current assets other than cash
32,000
Purchase of treasury stock
8,000
Cost of goods sold
$114,000
Other operating expenses
39,000
Purchase of equipment
37,000
Increase in current liabilities
11,000
Payment of note payable
29,000
Proceeds from sale of land
31,000
Depreciation expense
6,000
Explanation / Answer
Net income = Sales revenue-Cost of goods sold-Other operating expenses-Depreciation expense=222000-114000-39000-6000= 63000 Statement of cash flows For the year ended June 30,2012 Cash Flows from Operating Activities Net Income 63000 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation expense 6000 Increase in current assets other than cash -32000 Increase in current liabilities 11000 -15000 Net Cash Provided by Operating Activities 48000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.