Balances of the current asset and current liability

Assignment Help Cost Accounting
Reference no: EM13516705

The net income reported on the income statement for the year was $55,000, and depreciation of fixed assets for the year was $22,000. The balances of the current asset and current liability accounts at the beginning and end of the year are shown at the top of the following page.

 

End

Beginning

Cash

$ 65,000

$ 70,000

Accounts receivable

100,000

90,000

Inventories

145,000

150,000

Prepaid expenses

7,500

8,000

Accounts payable

 

 

(merchandise creditors)

51,000

58,000

The total amount reported for cash flows from operating activities in the statement of cash flows, using the indirect method, is:

A. $33,000.

B. $55,000.

C. $65,500.

D. $77,000.

Reference no: EM13516705

Questions Cloud

Determine the free cash flow for mediterranean : Determine the free cash flow for Mediterranean Tile Company.
Prepare a statement of cash flows using the direct method : Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
Find the maximum height and total time in the air : Create your own 2D kinematics problem and present a detailed solution that includes a sketch. the problem must begin and conclude at different heights, find the maximum height and total time in the air
What is the mass of this new moon : In the future, an astronaut weighing 882 Newtons on earth may stand on a new moon and weigh themselves to find they now weigh 441 Newtons. what is the mass of this new moon
Balances of the current asset and current liability : The balances of the current asset and current liability accounts at the beginning and end of the year -  cash flows from operating activities in the statement of cash flows
What is the angular momentum after the failure : A spherical satellite with a radius of 75m is spinning over its own axis with an angular speed of 232rad/s. What is the angular momentum after the failure
Evaluate the net cash flow from operating activities : the income statement showed a gain of $4,100 from the sale of land. Reconcile a net income of $50,000 to net cash flow from operating activities.
Find what is the current in the primary : a transformer can be used to step-up or step-down voltage. Since the power must be constant, What is the current in the primary
Cash flows from operating activities : Adjust net income of $70,000 for changes in operating assets and liabilities to arrive at cash flows from operating activities.

Reviews

Write a Review

Cost Accounting Questions & Answers

  Evaluate journal entry for the first installment payment

Evaluate journal entry for the first installment payment on December 31, 2013.

  How many units of each product whitt must sell

Determine how many units of each product Whitt must sell in order to breakeven in 2012 and companys fixed selling and administrative expanses are forecasted to be $500,000. Whitt has a tax rate of 40 percent.

  Statement of cash flows

Johnstone Manufacturing Company has used the double-declining balance method to depreciate its machinery. During the present year, management switched to the straight-line method because they felt that it better shown the utilization of the assets..

  What is berry hills basis in the equipment

Joseph contributed $34,750 in cash and equipment with a tax basis of $8,800 and a fair market value of $12,000 to Berry Hill Partnership in exchange for a partnership interest. a. What is Joseph's tax basis in his partnership interest

  Determine the lessees capitalizable cost

Allied Package Express Service properly capitalized at $93,598 a large truck it had leased on January 1, 2011. The truck has a 14-year useful life. Title to the truck passes to Allied at the end of the 12-year lease term.

  Create entries for monthly expenses

We are not creating entries for monthly expenses such as rent and preparing the financial statements and documents floating around that may or may not be needed for efficient and effective processing of the business information and paper that is no..

  What is the annual breakeven point

What is the annual breakeven point in (a) units sold and (b) revenues?

  What is the highest price in term of rate per hr

what is the highest price in term of rate per hr that this company should be willing to pay for additional capacity 4 added direct labor time.

  Review the anthonys orchard case study

Review the Anthony's Orchard case study in the unit resources. Consider the following: The company, according to Anthony's Orchard Strategic Plan, is hoping to purchase an apple press in order to start a new line of prepared apple products-apple j..

  Balance of the forfeited shares account

Prepare the journal entries to record the transactions of Panorama Ltd up to and including that which took place on 16 June 2012. Show all workings.

  Questionparent corporation purchased land from s1

questionparent corporation purchased land from s1 corporation for 220000 on december 26 20x8. this purchase followed a

  Major league bat company manufactures baseball bats in

major league bat company manufactures baseball bats. in addition to its goods in process inventories the company

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd