Determine the net cash provided by operating activities, Financial Accounting

Assignment Help:

Van Aalst Company's comparative balance sheet and income statement for last year appear below:
Comparative Balance Sheet
Ending Balance Beginning Balance
Assets:
Cash and cash equivalents 61,000 25,000
Accounts receivable 23,000 46,000
Inventory 30,000 47,000
Prepaid expenses 31,000 19,000
Long-term investments 290,000 210,000
Property, plant and equipment 520,000 520,000
Less accumulated depreciation 371,000 329,000
Total assets $584,000 $538,000

Accounts payable 56,000 40,000
Accrued liabilities 12,000 18,000
Income taxes payable 62,000 38,000
Bonds payable 140,000 190,000
Common stock 80,000 60,000
Retained earnings 234,000 192,000
Total liabilities and stockholders' equity $584,000 $538,000

Income Statement:
Sales $790,000
Cost of goods sold 350,000
Gross margin 440,000
SG&A 270,000
Net operating income 170,000
Income taxes 51,000
Net income 119,000
The company declared and paid $77,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by operating activities.
1. On the statement of cash flows, the sales revenue adjusted to a cash basis would be: A. $796,000 B. $767,000 C. $790,000 D. $813,000
2. On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be: A. $350,000 B. $383,000 C. $317,000 D. $334,000
3. On the statement of cash flows, the selling and administrative expense adjusted to a cash basis would be: A. $270,000 B. $246,000 C. $294,000 D. $288,000
4. On the statement of cash flows, the income tax expense adjusted to a cash basis would be: A. $27,000 B. $75,000 C. $51,000 D. $38,000

 


Related Discussions:- Determine the net cash provided by operating activities

Calculate the expected dividend yield, Assume that it is now January 1, 201...

Assume that it is now January 1, 2012. XYZ Inc. has developed a solar panel capable of generating 200% more electricity than any other solar panel currently on the market. As a res

Profitability index of a project, Using the profitability index, which of t...

Using the profitability index, which of the following projects should be accepted? Project M:  NPV = $60,000     NINV =    $200,000 Project N:  NPV = $10,000     NINV =     $

Assertion, Assertion -Implicit or explicit representations by an entity's m...

Assertion -Implicit or explicit representations by an entity's management which are embodied infinancial statement components and for which AUDITOR obtains and evaluates evidential

Conversion into a company-partnership, CONVERSION INTO A COMPANY The part...

CONVERSION INTO A COMPANY The partners may convert their business and trade in form of a company. This may be due to some of the advantages a company has over a partnership. E.g.

Determine the indicated market price per share, Q. Determine the indicated ...

Q. Determine the indicated market price per share? Your company's share is quoted in the market at Rs.20 Presently. The company pays a dividend of Rs.1 per share and the invest

Illustration of consolidated cashflow statements, Illustration of consolida...

Illustration of consolidated cashflow statements The voice of the Nation Limited is a Nairobi based media company. Its Consolidated Income Statement for the year ended 30 April

Define risk-adjusted discount rates, Q. Define Risk-adjusted discount rates...

Q. Define Risk-adjusted discount rates? One technique in this heading is the assignment of investment projects to one of a set of risk classes all of which has a different disc

Appointment of trustees-trust laws and accounts, APPOINTMENT OF TRUSTEES ...

APPOINTMENT OF TRUSTEES Capacity : Any person with legal capacity to hold property may be a trustee, except an infant. But the court will not appoint, and may remove:Persons u

Calculate mauves tax liability, Mauve Corporation began operations as a far...

Mauve Corporation began operations as a farm supplies business and used a fiscal year ending September 30. The company gradually went out of the farm supplies business and into the

Calculate the expected present value, Problem1 Derive from first princi...

Problem1 Derive from first principles an expression for the variance of the benefits payable under an endowment assurance with benefits payable at the end of the year of death.

Write Your Message!

Captcha
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