Reference no: EM131248195
Operating Cash Flows under the Indirect Method
As the new controller for Overseas Inc., you have the responsibility of preparing the year-end financial statements for the company for year 20x2. Overseas has a fiscal year end of December 31. You have already completed the balance sheet and income statement, so your final task is to prepare the company’s statement of cash flows. Overseas has prepared the operating section of the statement of cash flows using the indirect method, and you wish to maintain consistency in this regard.
Selected financial information from the current-year income statement and comparative balance sheet are as follow:
20x2 Income Statement:
Sales Revenue: $6,000,000
Cost of Goods Sold: (4,000,000)
Other Operating Expenses (85,000)
Depreciation and Amortization: (100,000)
Gain on Sale of Fixed Assets 50,000
Income Tax Expense (200,000)
Net Income: 1,665,000
Balance Sheet:
20x2 20x1
Assets:
Cash and Equivalents 270,000 200,000
Accounts Receivable 400,000 450,000
Inventory 300,000 200,000
Prepaid Insurance 150,000 125,000
Liabilities:
Accounts Payable 75,000 125,000
Income Taxes Payable 20,000 15,000
Other Expenses Payable 30,000 30,000
Note: Other Operating Expenses includes $25,000 insurance expense.
Required
Prepare the operating cash flows section of the statement of cash flows using the indirect method.
|
Prepare a marketing management assignment of “big skinny"
: Prepare a marketing management strategy assignment of “Big Skinny”Assignment should summarily include the following thinks:1. Introduction of the company2. Task1. Environment Appraisal Analysis in Summary3. Task2. Target Market 1
|
|
Income statement as deferred portion of income tax expense
: Mitchell Corporation prepared the following reconciliation for its first year of operations: The temporary difference will reverse evenly over the next two years at an enacted tax rate of 40%. The enacted tax rate for 2015 is 35%. What amount should ..
|
|
Preparing an adjusted trial balance
: Recording Adjusting Entries and Preparing an Adjusted Trial Balance: North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31, 2012. Cash- Debit $12,000 Credit- -. Accounts Receivable- ..
|
|
Show the absorption costing income statement
: Explain the differences between absorption and variable costing. Find an example in another source besides your book of the variable costing contribution format income statement and then show the absorption costing income statement. Explain the diffe..
|
|
Operating cash flows under the indirect method
: As the new controller for Overseas Inc., you have the responsibility of preparing the year-end financial statements for the company for year 20x2. Overseas has a fiscal year end of December 31. You have already completed the balance sheet and income ..
|
|
Capital is not material income-producing factor
: The December 31, 2016, balance sheet of the GAB LLP reads as follows: Adjusted Basis FMV Cash $300,000 $300,000 Receivables -0- 100,000 Capital assets 60,000 80,000 Total $360,000 $480,000 Gina, capital $90,000 $120,000 Adelle, capital 180,000 240,00..
|
|
Calculate the activity proportions for each cost pool
: Calculate the activity proportions for each cost pool in Carlise’s ABC system Activity Cost Pools Cost Driver Cost Assigned to Pool Quantity/Amount Consumed by Indoor Line Quantity/Amount Consumed by Outdoor Line Materials handling Number of moves $ ..
|
|
Spreadsheet delineating the components of hospital budget
: You have just started as an entry level accountant in your small 20 bed hospital. You need to get the buy in of your board to agree to a project to help your organization stay on the cutting edge; however they don’t understand the concept of budgetin..
|
|
Current manufacturing plan and the proposed plan
: SolarFlex is a small but very innovative manufacturer of cutting-edge solar panels. A significant portion of the company's success is due to technologically superior product design. Compute the contribution margin per unit and the breakeven point in ..
|