Chapter 4 The Income Statement and Statement of Cash Flows17

Chapter 4 The Income Statement and Statement of Cash Flows17

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Brief Exercise 4-15 Cash Flows from Operating Activities: Net income $45,000 Adjustments for noncash effects: Depreciation expense 80,000 Changes in operating assets and liabilities: Increase in prepaid rent (60,000) Increase in salaries payable 15,000 Increase in income taxes payable 12,000 Net cash inflows from operating activities $92,000 Brief Exercise 4-16 Under IFRS, interest received and interest paid usually are classified as investing and financing cash flows, respectively, not operating cash flows as with U.S. GAAP. The revised cash flow categories usually would appear as follows: Cash Flows from Operating Activities:
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Unformatted text preview: Collections from customers $ 660,000 Payment of operating expenses (440,000 ) Net cash flows from operating activities $220,000 Cash Flows from Investing Activities: Proceeds from note receivable collection $100,000 Sale of land 40,000 Interest on note receivable 12,000 Purchase of equipment (120,000 ) Net cash flows from investing activities $32,000 Cash Flows from Financing Activities: Issuance of common stock $200,000 Payment of dividends (30,000) Interest on note payable (18,000 ) Net cash flows from financing activities 152,000...
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