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

Entity theory method, Entity theory method: Golden Bells Inc. is a for...

Entity theory method: Golden Bells Inc. is a foreign subsidiary of Northern Bells Ltd., a Canadian company.  Northern Bells had purchased 90% of the outstanding shares of Gold

Process to increase the financial health of company, Process to increase th...

Process to increase the financial health of company Financial affairs of a limited company enter public domain. With exception of small companies, there is also a requirement f

Journalize the transactions, During it's first year of operations, Rosa Cor...

During it's first year of operations, Rosa Corp has these transactions pertaining to its common stock. Jan. 10 Issued 30,000 shares for cash at $5 per share July 1 Issued 60,000 sh

How much did additional paid in capital increase?, GHH, Inc. has two classe...

GHH, Inc. has two classes of stock authorized: $100,000 par preferred and $1.00 par value common. As the begining of 20C, 200 shares of preffered stock and 300,000 shares of common

Default risk premium on the corporate bond, a) A Treasury bond that matures...

a) A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond has a yield of 8%. Suppose that the liquidity premium on the corporate bond is 0.4%. What is

Divisible property-bankruptcy, DIVISIBLE PROPERTY The property of the ban...

DIVISIBLE PROPERTY The property of the bankrupt divisible among creditors includes: Property belonging to the bankrupt at the commencement of the bankruptcy; Property ac

Small bankruptcies-bankruptcy and liquidation, SMALL BANKRUPTCIES The c...

SMALL BANKRUPTCIES The court may order the estate of a debtor to be administered summarily, if the debtor's assets are not likely to exceed Shs 12,000 in value.  This is known

What is comparability, What is Comparability This quality would en...

What is Comparability This quality would enable users to identify changes in the business over time (for instance, trend in sales revenue over the past five years). It wou

Determine the npv of future cash flows, While many people know that Sonora,...

While many people know that Sonora, Mexico is a beautiful vacation spot, it is also a large furniture manufacturing location in North America. Guillermo Navallez made furniture for

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