Learning prepare a statement of cash flows with the

• Notes
• colonescience
• 203
• 94% (35) 33 out of 35 people found this document helpful

This preview shows page 117 - 122 out of 203 pages.

Learning Objective: 21-08 Prepare a statement of cash flows with the aid of a spreadsheet or T-accounts. Spiceland - Chapter 21 #59 Topic: Cash flows from operating activities-indirect method Topic: Preparation of the statement of cash flows

Subscribe to view the full document.

60. In its 2013 income statement, WME reported \$440,000 for the cost of goods sold. WME paid inventory suppliers \$380,000 in 2013, and its inventory balance decreased by \$41,000 during the year. In its reconciliation schedule, WME should: A. Show a \$19,000 positive adjustment to net income under the indirect method for the increase in accounts payable. B. Show a \$19,000 positive adjustment to net income under the indirect method for the decrease in accounts payable. C. Show a \$19,000 negative adjustment to net income under the indirect method for the increase in accounts payable. D. Show a \$19,000 negative adjustment to net income under the indirect method for the decrease in accounts payable. Decrease in inventory balance by \$41,000 indicates that purchases were less than cost of goods sold by \$41,000, totaling \$399,000. If cash paid to suppliers was \$380,000, accounts payable increased by \$19,000. AACSB: Analytic AICPA FN: Measurement Blooms: Analyze Difficulty: 3 Hard Learning Objective: 21-04 Determine cash flows from operating activities by the indirect method. Learning Objective: 21-08 Prepare a statement of cash flows with the aid of a spreadsheet or T-accounts. Spiceland - Chapter 21 #60 Topic: Cash flows from operating activities-indirect method Topic: Preparation of the statement of cash flows
61. On December 31, 2013, Tiras Company reported net income of \$50,000 and sales of \$200,000. The company also reported beginning and ending accounts receivable at \$20,000 and \$25,000, respectively. Tiras will report cash collected from customers in its 2013 statement of cash flows (indirect method) in the amount of: When using the indirect method to determine cash flows from operating activities, cash collected from customers is not calculated or reported. AACSB: Reflective Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: 21-04 Determine cash flows from operating activities by the indirect method. Spiceland - Chapter 21 #61 Topic: Cash flows from operating activities-indirect method

Subscribe to view the full document.

62. Hemmer Company reported net income for 2013 in the amount of \$40,000. The company's financial statements also included the following: What is net cash provided by operating activities? AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 21-04 Determine cash flows from operating activities by the indirect method. Spiceland - Chapter 21 #62 Topic: Cash flows from operating activities-indirect method

Subscribe to view the full document.

You've reached the end of this preview.
• Fall '10
• HE

{[ snackBarMessage ]}

What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern