Compute net cash provided by operating activities

Assignment Help Accounting Basics
Reference no: EM131809248

Comparative balance sheet accounts of Sharpe Company are presented below.

Additional data:

1. Equipment that cost $10,000 and was 60% depreciated was sold in 2014.

2. Cash dividends were declared and paid during the year.

3. Common stock was issued in exchange for land.

4. Investments that cost $35,000 were sold during the year.

5. There were no write-offs of uncollectible accounts during the year

Sharpe's 2014 income statement is as follows.

Sales revenue

 

$950,000

Less: Cost of goods sold

 

600,000

Gross profit

 

350,000

Less: Operating expenses (includes depreciation expense and bad debt expense)

 

250,000

Income from operations

 

100,000

Other revenues and expenses

 

 

Gain on sale of investments

$15,000 

 

Loss on sale of equipment

(3,000)

12,000

Income before taxes

 

112,000

Income taxes

 

45,000

Net income

 

$ 67,000

Instructions

(a) Compute net cash provided by operating activities under the direct method.

(b) Prepare a statement of cash flows using the indirect method.

Reference no: EM131809248

Questions Cloud

Examining alternate sites for a new london airport : In the early 1980s, planners were examining alternate sites for a new London airport. The economic analysis included the value of structures
Explain the main sources of power within the organization : Explain the main sources of power within the organization - describe how organizational politics influenced the overarching organizational behavior
Performance measures and pench marking : Performance measures : covering its objectives, typical measurement , quality costs, and the baldrige classification measurement.
What was the future worth : If the savings account paid 6% interest, compounded monthly, what was the future worth of his savings immediately after the last deposit?
Compute net cash provided by operating activities : Compute net cash provided by operating activities under the direct method
Find amount reported as pension liability on balance sheet : The amount reported as the pension liability on Noble's balance sheet at December 31, 2013 is
Graph the pw for interest rates : Is the third dragline economically attractive if i is 20%? Graph the PW for interest rates of 0% to 100%?
What is the sample regression equation : Construct a scatterplot and verify that estimating a simple linear regression is appropriate in this problem.
Construct the pbt graph : The time horizon is 10 years. Is there a meaningful IRR? Is the project attractive? Construct the PBt graph.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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