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

Illustration of retirement of a partner, Illustration of Retirement of a pa...

Illustration of Retirement of a partner A, B and C have been trading as equal partners having capital contributions of £500,000 and £400,000 and £300,000 respectively as at 1st

Continuous compounding, The excessive frequency of compounding is generally...

The excessive frequency of compounding is generally continuous compounding where the interest is compounded immediately. The data for continuous compounding for one year is e APR

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

The deficiency account-bankruptcy accounts, The Deficiency Account Pur...

The Deficiency Account Purpose of deficiency account : The purpose of the deficiency account is to explain the deficit shown on the statement of affairs. The deficiency acc

What is net worth create balance sheet, Gary and Joyce Yau, both 30, last m...

Gary and Joyce Yau, both 30, last month bought their dream house in London, Ontario. The purchase price was $450,000 plus addition fees such as taxes, legal fees, administration fe

Return on equity, profit margin 2.5%, equity multiplier 2.0,sales $50000, c...

profit margin 2.5%, equity multiplier 2.0,sales $50000, common equity $25000.compute return on common equity.

Prepare journal entries - bussiness accounting, Question 1  Describe a...

Question 1  Describe and differentiate the four (4) different Financial Statements. HINT : use examples of actual companies or transactions to illustrate your answer. Give

Service revenue earned on account, what type of transaction is a service re...

what type of transaction is a service revenue earned on account? a) asset source, b) asset use, c) asset exchange or d) claims exchange?

Expense recognition, Purchases office supplies on account costing $12,600 d...

Purchases office supplies on account costing $12,600 during July. It pays $5,500 for these purchases during July and the remainder during August. Office supplies on hand on July 1

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