Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 13, Problem 13.22BE
To determine
To prepare: The operating section of the statement of cash flows for 2017.
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Use the following information from Dubuque Company's financial statements to prepare the operating activities section of the
statement of cash flows (indirect method) for the year 2018:
2018 Income
Statement
Balance Sheets
Sales
Cost of Goods Sold
Operating Expenses, other than depreciation expense
Depreciation Expense
Gain on Sale of Plant Assets
$ 299,000
(135,000)
(27,000)
(17,000)
16,500
136,500
Net Income
Dec. 31, 2018
$45,300
1,600
22,500
900
Accounts Receivable
Inventory
Accounts Payable
Accrued Liabilities
Accounts Receivable
Inventory
Accounts Payable
Accrued Liabilities
Dec. 31, 2017
$43,400
1,800
21,250
1,150
PLEASE NOTE: Use the account and term names exactly, as shown above and the accounts will be listed in the same order as shown
in the textbook examples. All dollar amounts will be rounded to whole dollars using "$" and commas as needed (i.e. $12,345) and
decreases will be shown with parentheses - $(12,345).
Your goal is to prepare a Statement of Cash Flows within the problem noted below. In the Excel Template provided, you will find the Balance Sheet of Marina Comp for December 31, 2013. In addition to the information on the Balance Sheet, we are presented with the following additional data related to current year operations: 1. Net income for the year 2013, $66,000. 2. Depreciation on plant assets for the year, $12,700. 3. Sold the long-term investments for $28,000 (assume gain or loss is ordinary). 4. Paid dividends of $25,000. 1 / 2 5. Purchased machinery costing $21,500, paid cash. 6. Purchased machinery and gave a $60,000 long-term note payable. 7. Paid a $40,000 long-term note payable by issuing common stock.
Using the Exhibit below, assume that the depreciation expense on the Income Statement for the year was $38,000. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of depreciation expense on the Cash flow from operating activities section?
EXHIBIT
Increase
(Decrease)
Net Income (loss) $XXX
Adjustments to reconcile net income to net cash flow
from operating activities:
Depreciation of fixed assets XXX
Losses on disposal of assets XXX
Gains on disposal of assets (XXX)
Changes in current operating assets and liabilities:…
Chapter 13 Solutions
Managerial Accounting (5th Edition)
Ch. 13 - (Learning Objective 1) Which of the following is...Ch. 13 - Prob. 2QCCh. 13 - Prob. 3QCCh. 13 - Prob. 4QCCh. 13 - Prob. 5QCCh. 13 - Prob. 6QCCh. 13 - Prob. 7QCCh. 13 - Prob. 8QCCh. 13 - Prob. 9QCCh. 13 - (Learning Objective 3) Which one of the following...
Ch. 13 - Prob. 13.1SECh. 13 - Prob. 13.2SECh. 13 - Prob. 13.3SECh. 13 - Prob. 13.4SECh. 13 - Prob. 13.5SECh. 13 - Calculate financing cash flows (Learning...Ch. 13 - Prob. 13.7SECh. 13 - Prob. 13.8SECh. 13 - Prob. 13.9SECh. 13 - Prob. 13.10SECh. 13 - Prob. 13.11SECh. 13 - Prob. 13.12AECh. 13 - Prob. 13.13AECh. 13 - Prob. 13.14AECh. 13 - Calculate operating cash flows (indirect method)...Ch. 13 - Prob. 13.16AECh. 13 - Prob. 13.17AECh. 13 - Prob. 13.18AECh. 13 - Prob. 13.19AECh. 13 - Prob. 13.20AECh. 13 - Classify sustainable activities effect on cash...Ch. 13 - Prob. 13.22BECh. 13 - Prob. 13.23BECh. 13 - Prob. 13.24BECh. 13 - Calculate operating cash flows (indirect method)...Ch. 13 - Prob. 13.26BECh. 13 - Prob. 13.27BECh. 13 - Prob. 13.28BECh. 13 - Prob. 13.29BECh. 13 - Prob. 13.30BECh. 13 - Classify sustainable activities effect on cash...Ch. 13 - Prob. 13.32APCh. 13 - Prepare statement of cash flows (indirect method)...Ch. 13 - Prob. 13.34APCh. 13 - Prob. 13.35APCh. 13 - Prob. 13.36BPCh. 13 - Prepare statement of cash flows (indirect method)...Ch. 13 - Prob. 13.38BPCh. 13 - Prob. 13.39BPCh. 13 - Prob. 13.40SCCh. 13 - Discussion Analysis A13-41 Discussion Questions...Ch. 13 - Prob. 13.42ACTCh. 13 - Ethics involved with statement of cash flows...Ch. 13 - Prob. 13.44ACTCh. 13 - Prob. 13.45ACT
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