Zumbrunn Company’s income statement contained the condensed information below. Z
ID: 2588494 • Letter: Z
Question
Zumbrunn Company’s income statement contained the condensed information below.
ZUMBRUNN COMPANY
Income Statement
For the Year Ended December 31, 2015
$969,640
$624,810
60,490
15,970
701,270
268,370
39,320
Zumbrunn’s balance sheet contained the comparative data at December 31, shown below.
2015
2014
6,180
Accounts payable pertain to operating expenses.
Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
ZUMBRUNN COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2015
Adjustments to reconcile net income to
depreciation expense: 60,490
loss on equipment 15,970
increas in AR (14,970)
increase in AP 13,320
increase in income taxes payable 4120
______________________
**I NEED THE TOTAL FROM THOSE AND
net cash provided by operating activities _____________
$229,050
ZUMBRUNN COMPANY
Income Statement
For the Year Ended December 31, 2015
$969,640
Operating expenses, excluding depreciation$624,810
Depreciation expense60,490
Loss on disposal of equipment15,970
701,270
Income before income taxes268,370
Income tax expense39,320
Net incomeZumbrunn’s balance sheet contained the comparative data at December 31, shown below.
2015
2014
Accounts receivable $75,760 $60,970 Accounts payable 41,880 28,560 Income taxes payable 10,3006,180
Accounts payable pertain to operating expenses.
Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
ZUMBRUNN COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2015
Adjustments to reconcile net income to
Net Cash provide by operating activities
depreciation expense: 60,490
loss on equipment 15,970
increas in AR (14,970)
increase in AP 13,320
increase in income taxes payable 4120
______________________
**I NEED THE TOTAL FROM THOSE AND
net cash provided by operating activities _____________
$$229,050
Explanation / Answer
Prepare the operating activities section of the statement of cash flows using the indirect method.
Net income 229050 Adjustment to reconcile net income Depreciation exp 60490 Loss on sale of equipment 15970 Increase in AR (14790) Increase in AP 13320 Increase in income tax payable 4120 Net cash flow from operating activities 308160Related Questions
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