Prepare the operating activities section of the statement

Assignment Help Accounting Basics
Reference no: EM132460477

The statement of income of Sheffield Transport Inc. for the year ended December 31, 2020, reported the following condensed information:

Service revenue

 

$565,000

Operating expenses

 

390,000

Income from operations

 

175,000

Other revenues and expenses

 

 

Gain on disposal of equipment

$35,000

 

Interest expense

20,000

15,000

Income before income tax

 

190,000

Income tax

 

38,000

Net Income

 

$152,000

Sheffield's statement of financial position included the following comparative data at December 31:

 

2020

2019

Accounts receivable

$66,500

$79,000

Prepaid insurance

20,000

6,000

Accounts payable

44,500

72,500

Interest payable

7,000

2,250

Income tax payable

19,000

18,000

Unearned revenue

38,000

50,000

Operating expenses include $180,000 in depreciation expense. The company follows !FRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows.

Question 1: Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Reference no: EM132460477

Questions Cloud

Discuss strategies for promoting research in your facility : Find out if there is a research committee at your facility or who is involved in developing policy based on research. Discuss strategies for promoting research.
Prepare alpha company sold on account merchandise costing : Prepare Alpha Company sold on account merchandise costing $3,000 to Bravo Company on May 2, 2016. Selling price was $4,500. Freight charges related
Create a chart with data specific to injuries : As you can see from the material, injuries play a big role in Public Health. For this assignment, you will create a chart with data specific to injuries.
Discuss how health care delivery system work collaboratively : Select a global health issue affecting the international health community. Briefly describe the global health issue and its impact on the larger public health.
Prepare the operating activities section of the statement : Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, using the indirect method
Explain a global implication of the disease : Epidemiology Paper Requirements: Discuss a global implication of the disease. How is this addressed in other countries or cultures? Is this disease endemic.
What would you say are the characteristics of a population : As they relate to your understanding and/or experience in the healthcare industry, what would you say are the characteristics of a population for which it would
How would those pros and cons effect the population : Is the current tax system efficient for America today or would there be a more efficient tax system? What are pros and cons of a "Flat tax" or a VAT approach
What do you consider to be one of the most important issues : Considering the current healthcare environment as it relates to legislation and policy, what do you consider to be one of the most important issues to address?

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