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

Corporate enterprise group, Q. Corporate Enterprise group? In order to ...

Q. Corporate Enterprise group? In order to have better and systematic participation of labour in management for improvement in working of Railway system and appropriate changes

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

Creditors voluntary winding up-liquidation of companies , Creditors' volu...

Creditors' voluntary winding up    If no declaration of solvency is filed the winding up must take place under the control of the creditors. 1. Meeting of creditors : Th

Find out the prize of current prize stock, The current stock price of IOU i...

The current stock price of IOU is $250 and has a standard deviation of 35% per year. The risk-free interest rate is 5% per year compounded continuously. Find the prices of a call a

Evaluation of net working capital, Q. Evaluation of Net working capital? ...

Q. Evaluation of Net working capital? The evaluation presumes that several key variables will remain constant such as the inflation rates, discount rate and the taxation rate.

Investment, compute the arithmetic mean rate of return and standard deviati...

compute the arithmetic mean rate of return and standard deviation of rates of return for the two series

Identifying fixed cost and variable cost, 1. When preparing the operating a...

1. When preparing the operating activities section of the statement of cash flows using the indirect method, a decrease in accounts recievable is subtracted from net income. True o

Inter-company transactions and balances, INTER-COMPANY TRANSACTIONS AND BAL...

INTER-COMPANY TRANSACTIONS AND BALANCES As the associate company is not consolidated, care should be taken when there are trading transactions and inter-company balances between

Report to stockholders of a company, Q. Report to stockholders of a company...

Q. Report to stockholders of a company? Annual Report - Report to stockholders of a company that includes company's annual,audited BALANCE SHEET and related statements of earni

Annual Report, Before nominations for a board position should the annual re...

Before nominations for a board position should the annual report be available

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