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.
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. |
Related questions
A company's income statement showed the following: net income,$126,000; depreciation expense, $37,000; and gain on sale of plantassets, $13,000. An examination of the company's current assets andcurrent liabilities showed the following changes as a result ofoperating activities: accounts receivable decreased $9,500;merchandise inventory increased $17,500; prepaid expenses decreased$6,900; accounts payable increased $3,400. Calculate the net cashprovided or used by operating activities.
a)$152,300.
b)$64,500.
c)$213,300.
d)$119,500.
e) $138,600.
question 2
Given the following information, determine the amount of cashflows from investing and financing activities.
| Net Income | $58,000 |
| Loss on sale of plantassets | 19,000 |
| Cash received from saleof plant assets | 35,000 |
| Cash received fromissuing stock | 80,000 |
| Increase in incometaxes payable | 120,000 |
Cash used by investing activities, $35,000;
Cash used by financing activities, $61,000.
Cash provided by investing activities, $16,000;
Cash provided by financing activities, $80,000.
Cash used by investing activities, $16,000;
Cash used by financing activities, $80,000.
Cash provided by investing activities, $35,000;
Cash provided by financing activities, $61,000.
Cash provided by investing activities, $35,000;
Cash provided by financing activities, $80,000.
| IKIBAN INC. | ||||||||
| 2015 | 2014 | |||||||
| Assets | ||||||||
| Cash | $ | 96,500 | $ | 56,200 | ||||
| Accounts receivable, net | 69,300 | 51,400 | ||||||
| Inventory | 66,600 | 96,800 | ||||||
| Prepaid expenses | 5,100 | 6,400 | ||||||
| Total current assets | 237,500 | 210,800 | ||||||
| Equipment | 135,200 | 120,000 | ||||||
| Accum. depreciationâEquipment | (28,900 | ) | (10,500 | ) | ||||
| Total assets | $ | 343,800 | $ | 320,300 | ||||
| Liabilities and Equity | ||||||||
| Accounts payable | $ | 26,900 | $ | 32,200 | ||||
| Wages payable | 7,100 | 16,700 | ||||||
| Income taxes payable | 2,500 | 4,100 | ||||||
| Total current liabilities | 36,500 | 53,000 | ||||||
| Notes payable (long term) | 42,000 | 70,000 | ||||||
| Total liabilities | 78,500 | 123,000 | ||||||
| Equity | ||||||||
| Common stock, $5 par value | 240,000 | 189,000 | ||||||
| Retained earnings | 25,300 | 8,300 | ||||||
| Total liabilities and equity | $ | 343,800 | $ | 320,300 | ||||
| IKIBAN INC. | ||||||
| Sales | $ | 673,000 | ||||
| Cost of goods sold | 407,000 | |||||
| Gross profit | 266,000 | |||||
| Operating expenses | ||||||
| Depreciation expense | $ | 53,000 | ||||
| Other expenses | 66,900 | |||||
| Total operating expenses | 119,900 | |||||
|
| 146,100 | |||||
| Other gains (losses) | ||||||
| Gain on sale of equipment | 2,600 | |||||
| Income before taxes | 148,700 | |||||
| Income taxes expense | 59,480 | |||||
| Net income | $ | 89,220 | ||||
a. A $28,000 note payable is retired at its $28,000 carrying (book) value in exchange for cash.
b. The only changes affecting retained earnings are net income and cash dividends paid.
c. New equipment is acquired for $63,800 cash.
d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,600 gain.
e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
f. All purchases and sales of inventory are on credit.
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(2) Compute the company's cash flow on total assets ratio for its fiscal year 2015.
An extract from the balance sheets of Mum & Dra Pty Ltd showed the following for the years ended 30 June 2013 and 30 June 2014:
| Current Assets | 30 June 2013 | 30 June 2014 |
| Bank Accounts receivable Allowance (provision) for doubtful debts Inventory Bills Receivable | 17,000 67,000 - 3,000 52,000 10,000 | 19,300 61,000 - 2,000 55,000 14,000 |
| Current Liabilities | ||
| Accounts payable Taxation payable Provision for annual leave Provision for dividend | 44,000 12,000 14,000 16,000 | 48,000 14,000 22,000 22,000 |
Additional Information:
Net profit after taxation is $244,000. This profit was determined after accounting for the following income and expense items:
| $ | |
| Depreciation | 36,000 |
| Gain on sale of plant | 18,000 |
| Transfer from the allowance (provision) for doubtful debts | 1,000 |
| Transfer to provision for annual leave | 8,000 |
Required: Determine the net cash provided from operating activities for the year ended 30 June 2014, by completing the reconciliation with profit after tax
Please use the following format
Reconciliation of profit after tax to cash flows from operating activities
| Profit after tax | ||
| Add (subtract) non cash items | ||
| Add (subtract) movements in balance sheet | ||
| Net cash from Operating Activities |
