Prepare operating activities section of cash flow statement

Assignment Help Accounting Basics
Reference no: EM132761769

Problem - Prince Incorporated reported profit of $250,000 for the current year. Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

 

End of Year

Beginning of Year

Cash

$20,000

$15,000

Accounts receivable

19,000

32,000

Inventories

50,000

65,000

Prepaid expenses

7,500

5,000

Accounts payable

12,000

18,000

Income taxes payable

1,600

1,200

Instructions - Prepare the operating activities section of the cash flow statement, using the indirect method.

Reference no: EM132761769

Questions Cloud

What is the value of the assets required by the debt holders : What is the value of the assets required by the debt holders to permit a fair interest rate? The market value of the assets of a corporation is currently $145
What are the key arguments for both the union : What are the key arguments for both the union (grievor) and the employer and Which party (union or employer) would have procedural onus in this case?
Calculate the total differential or incremental costs : Calculate the Total differential or incremental costs in the context of Jaclyn's decision. Cost of two business suits (clothing) purchased just prior
Why interpersonal communication is important in accounting : The topic is up to you write three reasons why Interpersonal Communication is important in accounting or finance. In addition, provide ONE outside source.
Prepare operating activities section of cash flow statement : Prince Incorporated reported profit of $250,000 for the current year. Prepare operating activities section of cash flow statement
Compute what is the amount of the cash paid to suppliers : If a company's Cost of Goods Sold is $159,000 for the period, beginning and ending Inventory balances. what is the amount of the cash paid to suppliers?
How do you handle this confict : The other half wants to make working the extra hours voluntary. How do you handle this confict?
Find and calculate firm operating breakeven level of sales : 0.76% of sales, while fixed cost will be $450,000. The first year's sales estimates are $1,356,691. Calculate the firm's operating breakeven level of sales.
What is the annual return to the investor : What would be the additional "cost" if the dividend is 15¢ per share each quarter, and you issue 200,000 new shares? What is the annual return to the investor

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is shown in cash flow statements

What contrasts are there between what is shown in cash flow statements and the need for firms to borrow at high rates and firms' income statements?

  Compute the market value of the bonds

(Cost of debt?) Sincere Stationery Corporation needs to raise ?$500,000 to improve its manufacturing plant. It has decided to issue a $1,000 par value bond.

  What is the average selling price per share of common stock

Rancho Cucamonga Inc. presented the following shareholders' equity information on December 31, 2019. What is the average selling price per share of common stock

  Create an argument supporting three items in the act

Create an argument supporting three items in the act that you would not change

  Prepare t-accounts for inventories

Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these t-accounts.

  Data pertaining to the postretirement health care benefit

data pertaining to the postretirement health care benefit plan of sterling properties include the following for 2013 in

  Compute the ending inventory at May

Xiong Co. uses a periodic inventory system. Its records show the following for the month of May, Compute the ending inventory at May

  How much should the company report

On December 31, $135 worth of office supplies remained. How much should the company report as office supplies expense for the year

  Determine the balance on the job cost sheets

Determine the balance on the job cost sheets for Jobs 50 and 51 at the end of April.

  Advantages of the four different special journals

What are the advantages of the four different special journals? When would you use each type? What is a subsidiary ledger and what purpose does it serve?

  Compute diluted earnings per share

Venzuela Company's net income for 2017 is $50,000. Compute diluted earnings per share. (Round to nearest cent.)

  Pretax accounting income and taxable income

Sherrod, Inc., reported pretax accounting income of $92 million for 2011. The following information relates to differences between pretax accounting income and taxable income:

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