Learning prepare a statement of cash flows with the

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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
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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
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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
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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
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