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

Official development assistance , 1. To qualify as official development ass...

1. To qualify as official development assistance (ODA), development loans must have a grant element of at least 25 percent, calculated using a stated annual interest rate of 10 per

Draw the event and decision tree, Suppose Real Option Inc. has a product th...

Suppose Real Option Inc. has a product that generates the following cash flow. At t=1, the demand can be high or low with equal probability. If demand is high (low) the cash flo

Application of discharge-discharge of bankrupt, Application of discharge ...

Application of discharge Application may be made at any time after adjudication, but cannot be heard until the conclusion of the public examination. Notice of the hearing must

Determine current stock price & current dividend of company, 1. Select a pu...

1. Select a publicly traded company (preferably manufacturing oriented; do not use a financial services company such as a bank or a bank holding company) and obtain a copy of their

Conversion of members'' to creditors'' winding up-liquidation, Conversion o...

Conversion of members' to creditors' winding up If the liquidator in a members' winding up forms the opinion that the company will not be able to pay its debts in full within t

Statement of cash flows, I am trying to prepare a statement of cash flows f...

I am trying to prepare a statement of cash flows for my accounting class. My professor didn''t give me a sales price for the equipment that was sold. I have that it originally cost

Assignment, I have an assignment due in four hours. Is it possible to get a...

I have an assignment due in four hours. Is it possible to get an inquiry if at least half of it can be done within that time?

Student, Open "Hoyle CPA: Earnings Per Share." Under "Free Questions" selec...

Open "Hoyle CPA: Earnings Per Share." Under "Free Questions" select "Financial Accounting & Reporting."

What do you eman by lease, Q. What do you eman by Lease? Lease - Convey...

Q. What do you eman by Lease? Lease - Conveyance of buildings orland, equipment or other ASSETS from one person (LESSOR) to another (LESSEE) for a specific period of time for m

Compute a confidence interval for minnesota, For this problem we will be wo...

For this problem we will be working with the Ericksen data set for describing the percentage of the population not counted in the US Census from 1980. In this data set we have diff

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