Exercise 11-7 (Algo) Calculate operating activities-indirect method (LO11-3) Gemstone Distributors reports net income of $57,000. Included in that number is depreciation expense of $11,000 and a loss on the sale of land of $5,200. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $27,000, a decrease in inventory of $16,000, and an increase in accounts payable of $47,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities: GEMSTONE DISTRIBUTORS Statement of Cash Flows (partial) Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities

Exercise 11-7 (Algo) Calculate operating activities-indirect method (LO11-3) Gemstone Distributors reports net income of $57,000. Included in that number is depreciation expense of $11,000 and a loss on the sale of land of $5,200. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $27,000, a decrease in inventory of $16,000, and an increase in accounts payable of $47,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities: GEMSTONE DISTRIBUTORS Statement of Cash Flows (partial) Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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Exercise 11-6 (Algo) Calculate operating activities-indirect method (LO11-3) Gemstone Suppliers reports net income of $157,000. Included in net income is a gain on the sale of land of $16,000. A comparison of this year's and last year's balance sheets reveals an increase in accounts receivable of $27,000, an increase in inventory of $16,000, and a decrease in accounts payable of $47,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities: GEMSTONE SUPPLIERS Statement of Cash Flows (partial) Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Prev 1 of 2 ⠀ Next >
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