During 2014, Cupello Corporation had a net income of $144,000.Included on its income statement were depreciation expense of$16,000 and amortization expense of $1,800. During the year,Accounts Receivable decreased by $8,200, Inventories increased by$5,400, Prepaid Expenses decreased by $1,000, Accounts Payabledecreased by $14,000, and Accrued Liabilities decreased by$1,700.
Use the indirect method to determine net cash flows fromoperating activities.
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During 2014, Cupello Corporation had a net income of $144,000.Included on its income statement were depreciation expense of$16,000 and amortization expense of $1,800. During the year,Accounts Receivable decreased by $8,200, Inventories increased by$5,400, Prepaid Expenses decreased by $1,000, Accounts Payabledecreased by $14,000, and Accrued Liabilities decreased by$1,700.
Use the indirect method to determine net cash flows fromoperating activities.
$
Related questions
The income statement of Vince Gill Company is shown below.
| Vince Gill Company | ||
| Income Statement | ||
| For year ended December 31, 2014 | ||
Sales Revenue | $6,947,090 | |
| Cost of Goods Sold | ||
| Beginning inventory | $1,890,710 | |
| Purchases | 4,323,810 | |
| Goods available for sale | 6,214,520 | |
| Ending inventory | 1,601,450 | |
| Cost of goods sold | 4,613,070 | |
| Gross Profit | 2,334,020 | |
| Operating expenses | ||
| Selling expenses | 446,970 | |
| Admin expenses | 709,920 | 1,156,890 |
| Net income | 1,177,130 | |
| 1. | Accounts receivable decreased $316,040 during the year. | |
| 2. | Prepaid expenses increased $175,400 during the year. | |
| 3. | Accounts payable to suppliers of merchandise decreased $283,580during the year. | |
| 4. | Accrued expenses payable decreased $115,830 during theyear. | |
| 5. | Administrative expenses include depreciation expense of$54,760. |
Prepare the operating activities section of the statement ofcash flows using the direct method.
Choose the correct answer for the below:
A company's income statement showed the following: net income, $135,000; depreciation expense, $35,500; and gain on sale of plant assets, $19,500. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $10,500; merchandise inventory increased $23,500; prepaid expenses decreased $7,300; accounts payable increased $4,500. Calculate the net cash provided or used by operating activities.
| 1. | $149,800. |
| 2. | $154,600. |
| 3. | $175,800. |
| 4. | $147,800. |
| 5. | $169,300. |
