ADM 1340 Study Guide - Accounts Payable, Cash Flow Statement
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The records of True Color Engraving reveal the? following:
Net income | $42,000 | Depreciation expense | $9,000 | |
Sales revenue | 54,000 | Decrease in current liabilities | 31,000 | |
Loss on sale of land | 5,000 | Increase in current assets other than cash | 7,000 | |
Acquisition of land | 36,000 |
Compute cash flows from operating activities by the indirect method for year ended December? 31, 2018. ?(Use parentheses or a minus sign for numbers to be subtracted and to show net cash used for operating activities. If a box is not used in the? table, leave the box? empty; do not select a label or enter a? zero.)
True Color Engraving
Statement of Cash Flows (Partial)
Year Ended December 31, 2018
Cash Flows from Operating Activities:
Net Income ____________
Adjustments to Reconcile Net Income to Net Cash
Provided by (Used for) Operating Activities:
________________________________________ ___________
________________________________________ ___________
A BUNCH OF BLANKS
Net Cash Provided by (Used for) Operating Activities ______________
The income statement and a schedule reconciling cash flows fromoperating activities to net income are provided below for MacrosoftCorporation. |
MACROSOFTCORPORATION Income Statement For the Year Ended December 31, 2016 ($ in millions) |
Revenues andgains: | ||||||
Sales | $ | 292.00 | ||||
Gainon sale of cash equivalents | 1.10 | |||||
Gain onsale of investments | 23.10 | $ | 316.20 | |||
Expenses and loss: | ||||||
Cost ofgoods sold | $ | 111.00 | ||||
Salaries | 39.10 | |||||
Interestexpense | 11.10 | |||||
Insurance | 19.10 | |||||
Depreciation | 9.10 | |||||
Patentamortization | 3.10 | |||||
Losson sale of land | 5.10 | 197.60 | ||||
Income before tax | 118.60 | |||||
Income taxexpense | 59.30 | |||||
Netincome | $ | 59.30 | ||||
Reconciliation of Net Income to Net Cash Flows from Operating Activities ($ in millions) | |||
Netincome | $ | 59.30 | |
Adjustments fornoncash effects: | |||
Depreciationexpense | 9.10 | ||
Patent amortizationexpense | 3.10 | ||
Loss on sale ofland | 5.10 | ||
Gain on sale ofinvestment | (23.10 | ) | |
Decrease in accountsreceivable | 5.10 | ||
Increase ininventory | (11.10 | ) | |
Increase in accountspayable | 17.10 | ||
Decrease in bonddiscount | .10 | ||
Increase in salariespayable | 5.10 | ||
Decrease in prepaidinsurance | 3.10 | ||
Increase in income taxpayable | 9.10 | ||
Net cash flowsfrom operating activities | $ | 82.00 | |
Cash received from customers Cash increase from sale of cash equivalents Cash paid to suppliers Cash paid to employees Cash paid for interest Cash paid for insurance Cash paid for income taxes Net cash flows from operating activities |