Q1 Land Transactions on the Statement of Cash Flows Easterly…
QuestionQ1 Land Transactions on the Statement of Cash Flows Easterly…Q1Land Transactions on the Statement of Cash FlowsEasterly Corporation purchased land for $162,000. Later in the year, the company sold a different piece of land with a book value of $87,000 for $97,000How are the effects of these transactions reported on the statement of cash flows? Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select “No effect” from the drop down menu and leave the amount box blank.Transactions Action AmountGain or loss on sale of land Added to net incomeDeducted from net incomeNo effectPart of cash flows from financing activities Part of cash flows from investing activities $fill in the blank 2Cash received from sale of land Added to net incomeDeducted from net incomeNo effectPart of cash flows from financing activities Part of cash flows from investing activities $fill in the blank 4Cash paid for purchase of land Added to net incomeDeducted from net incomeNo effectPart of cash flows from financing activities Part of cash flows used for investing activities $fill in the blank 6Q2Financing Activities on the Statement of Cash FlowsTakaki Inc. reported net income of $53,000 for 20Y7. The liability and equity accounts from the company’s comparative balance sheet are as follows: Dec. 31, 20Y7 Dec. 31, 20Y6Accounts payable $31,900 $28,400 Dividends payable 5,000 3,000 Common stock, $5 par value 80,000 75,000 Paid-in capital in excess of par-common stock 37,000 30,000 Retained earnings 130,600 81,600 During the year, the company declared dividends of $4,000 and issued 1,000 shares of common stock for $12 per share.Prepare the Cash Flows from (used for) Financing Activities section of the statement of cash flows. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.Cash flows from (used for) financing activities: Cash paid for income taxesCash paid for merchandiseCash paid for operating expensesCash paid to retire bonds payableCash received from issuing common stock $- Select – Cash dividendsCash paid for income taxesCash paid for merchandiseCash paid for operating expensesCash received from sale of investments – Select – Net cash flows from financing activitiesNet cash flows used for financing activitiesNet decrease in cashNet incomeNet increase in cash $- Select -Q3Free Cash FlowBurkhalter Inc. reported the following on the company’s statement of cash flows in Year 2 and Year 1: Year 2 Year 1 Net cash flows from operating activities $385,000 $367,000 Net cash flows used for investing activities (293,000) (330,000) Net cash flows used for financing activities (83,000) (55,000) Seventy percent of the net cash flows used for investing activities was used to replace existing capacity.a. Determine Burkhalter’s free cash flow for both years.Year 2 $fill in the blank 1Year 1 $fill in the blank 2Q4Reporting Land Transactions on Statement of Cash FlowsOn the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows:ACCOUNT Land ACCOUNT NO. BalanceDate Item Debit Credit Debit CreditJan. 1 Balance 957,000 Mar. 12 Purchased for cash 325,000 1,282,000 Oct. 4 Sold for $179,000 153,000 1,129,000 Item Section of Statement ofCash Flows Added or Deducted AmountMar. 12: Purchase of fixed asset Financing activities sectionInvesting activities sectionOperating activities sectionNot on statement AddedDeductedNot applicable $fill in the blank 3Oct. 4: Sale of fixed asset Financing activities sectionInvesting activities sectionOperating activities sectionNot on statement AddedDeductedNot applicable $fill in the blank 6Gain on sale of fixed asset (assume the indirect method) Financing activities sectionInvesting activities sectionOperating activities sectionNot on statement AddedDeductedNot applicable $fill in the blank 9Q5Reporting Land Acquisition for Cash and Mortgage Note on Statement of Cash FlowsOn the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows:ACCOUNT Land ACCOUNT NO. BalanceDate Item Debit Credit Debit CreditJan. 1 Balance 281,500 Feb. 10 Purchased for cash 416,600 698,100 Nov. 20 Purchased with long-term mortgage note 565,500 1,263,600 Item Section of Statement of Cash Flows Added or Deducted AmountPurchase of land for cash Financing activities sectionInvesting activities sectionOperating activities sectionSeparate schedule AddedDeductedNot applicable $fill in the blank 3Purchase of land by issuinglong-term mortgage note Financing activities sectionInvesting activities sectionOperating activities sectionSeparate schedule AddedDeductedReport only $fill in the blank 6Q6Determining Cash Paid to StockholdersThe board of directors declared cash dividends totaling $174,500 during the current year. The comparative balance sheet indicates dividends payable of $43,600 at the beginning of the year and $39,200 at the end of the year.What was the amount of cash paid to stockholders during the year?$fill in the blank 1 Q7Reporting Stockholders’ Equity Items on Statement of Cash FlowsOn the basis of the following stockholders’ equity accounts, indicate the items, exclusive of net income, to be reported on the statement of cash flows. There were no unpaid dividends at either the beginning or the end of the year.ACCOUNT Common Stock, $15 par ACCOUNT NO. BalanceDate Item Debit Credit Debit CreditJan. 1 Balance, 55,000 shares 825,000 Apr. 2 13,750 shares issued for cash 206,250 1,031,250 June 30 2,000-share stock dividend 30,000 1,061,250 ACCOUNT Paid-In Capital in Excess of Par-Common Stock ACCOUNT NO. BalanceDate Item Debit Credit Debit CreditJan. 1 Balance 220,000 Apr. 2 13,750 shares issued for cash 371,250 591,250 June 30 Stock dividend 22,500 613,750 ACCOUNT Retained Earnings ACCOUNT NO. BalanceDate Item Debit Credit Debit CreditJan. 1 Balance 685,000 June 30 Stock dividend 52,500 632,500 Dec. 30 Cash dividend 78,800 553,700 Dec. 31 Net income 493,200 1,046,900 If an amount is not reported on the statement of cash flows, leave the amount box blank.Item Section of Statement of Cash Flows Added or Deducted AmountSale of common stock Investing activities sectionFinancing activities sectionNot reported on statement of cash flowsOperating activities section AddedDeductedNot applicable $fill in the blank 3Cash dividend Investing activities sectionFinancing activities sectionNot reported on statement of cash flowsOperating activities section AddedDeductedNot applicable $fill in the blank 6Stock dividend Investing activities sectionFinancing activities sectionNot reported on statement of cash flowsOperating activities section AddedDeductedNot applicable $fill in the blank 9Q8Reporting Issuance and Retirement of Long-Term DebtOn the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the Financing Activities section of the statement of cash flows, assuming no gain or loss on retiring the bonds:ACCOUNT Bonds Payable ACCOUNT NO. BalanceDate Item Debit Credit Debit CreditJan. 1 Balance 380,000 2 Retire bonds 76,000 304,000 June 30 Issue bonds 228,000 532,000 ACCOUNT Discount on Bonds Payable ACCOUNT NO. BalanceDate Item Debit Credit Debit CreditJan. 1 Balance 17,100 2 Retire bonds 6,080 11,020 June 30 Issue bonds 15,300 26,320 Dec. 31 Amortize discount 1,320 25,000 Item Section of Statement of Cash Flows Added or Deducted AmountRetire bonds Financing activities sectionInvesting activities sectionOperating activities section, if indirect method usedSeparate schedule AddedDeductedReport only $fill in the blank 3Issue bonds Financing activities sectionInvesting activities sectionOperating activities section, if indirect method usedSeparate schedule AddedDeductedReport only $fill in the blank 6Amortization of discount Financing activities sectionInvesting activities sectionOperating activities section, if indirect method usedSeparate schedule AddedDeductedReport only $fill in the blank 9Q9Statement of Cash FlowsThe comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1Assets Cash $191 $61 Accounts receivable (net) 109 76 Inventories 68 42 Land 156 172 Equipment 88 67 Accumulated depreciation-equipment (24) (12) Total Assets $588 $406 Liabilities and Stockholders’ Equity Accounts payable (merchandise creditors) $74 $61 Dividends payable 12 – Common stock, $1 par 39 19 Excess of paid-in capital over par 98 48 Retained earnings 365 278 Total liabilities and stockholders’ equity $588 $406 The following additional information is taken from the records:Land was sold for $40.Equipment was acquired for cash.There were no disposals of equipment during the year.The common stock was issued for cash.There was a $126 credit to Retained Earnings for net income.There was a $39 debit to Retained Earnings for cash dividends declared.Question Content Area a. Prepare a statement of cash flows, using the indirect method of presenting Cash flows from (used for) operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.Cash flows from (used for) operating activities: Cash received from sale of common stockDecrease in accounts receivableIncrease in inventoriesNet incomeNet loss $- Select – Adjustments to reconcile net income to net cash flows from (used for) operating activities: Decrease in accounts receivableDepreciationGain on sale of landIncrease in accounts receivableLoss on sale of land – Select – Cash dividendsDecrease in inventoriesGain on sale of landIncrease in accounts payableLoss on sale of land – Select – Changes in current operating assets and liabilities: Decrease in accounts receivableDecrease in inventoriesDepreciationIncrease in accounts receivableNet income – Select – Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesIncrease in inventoriesNet income – Select – Cash paid for dividendsDecrease in accounts payableDepreciationIncrease in accounts payableNet income – Select – Net cash flow from operating activities $fill in the blank 22191504805e017_13Cash flows from (used for) investing activities: Cash paid for dividendsCash received from sale of landDepreciationGain on sale of landIncrease in accounts receivable $- Select – Cash paid for purchase of equipmentDecrease in accounts receivableDepreciationIncrease in accounts payableIncrease in inventories – Select – Net cash flow from investing activities fill in the blank 22191504805e017_18Cash flows from (used for) financing activities: Cash received from issuing common stockCash received from sale of landDecrease in accounts payableDepreciationNet income $- Select – Cash dividendsCash received from sale of landDecrease in inventoriesGain on sale of landIncrease in accounts receivable – Select – Net cash flows from financing activities fill in the blank 22191504805e017_23DepreciationNet decrease in cashNet incomeNet increase in cashNet loss $- Select -Cash balance, January 1, 20Y2 fill in the blank 22191504805e017_26Cash balance, December 31, 20Y2 $fill in the blank 22191504805e017_27Q10Statement of Cash FlowsThe following statement of cash flows for Shasta Inc. was not correctly prepared. List the errors you find on the statement of cash flows. The cash balance at the beginning of the year was $240,000. All other amounts are correct, except the cash balance at the end of the year.Shasta Inc.Statement of Cash FlowsFor the Year Ended December 31, 20Y9 Cash flows from (used for) operating activities: Net income $360,000 Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation 100,800 Gain on sale of investments 17,280 Changes in current operating assets and liabilities: Increase in accounts receivable 27,360 Increase in inventories (36,000) Increase in accounts payable (3,600) Decrease in accrued expenses payable (2,400) Net cash flows from operating activities $463,440 Cash flows from (used for) investing activities: Cash received from sale of investments $240,000 Cash paid for purchase of land (259,200) Cash paid for purchase of equipment (432,000) Net cash flows used for investing activities (415,200) Cash flows from (used for) financing activities: Cash received from issuing common stock $312,000 Cash dividends (132,000) Net cash flows from financing activities 180,000 Net increase in cash $47,760 Cash balance, December 31, 20Y9 192,240 Cash balance, January 1, 20Y9 $240,000 Question Content Area a. Answer the following questions. Use your answers to help you in locating errors for the above statement of cash flows.Item Yes or No1. Depreciation should be added to net income. YesNo2. Gain on sale of investments should be added to net income. YesNo3. Increases in accounts payable should be deducted from net income. YesNo4. Increases in accounts receivable should be added to net income. YesNo5. Cash paid for property, plant, and equipment should be deducted under investing. YesNo6. Cash received from issuing common stock should be added under financing. YesNo7. Cash dividends should be added under financing. YesNo b. Enter the corrected amounts below. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.Net cash flows from operating activities $fill in the blank ab5feaf43022ff8_8Net cash flows used for investing activities $fill in the blank ab5feaf43022ff8_9Net cash flows from financing activities $fill in the blank ab5feaf43022ff8_10 Question Content Area c. Prepare a corrected statement of cash flows. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.Cash flows from (used for) operating activities: Cash received from issuing common stockDecrease in accounts receivableIncrease in inventoriesNet incomeNet loss $- Select – Adjustments to reconcile net income to Net cash flowss from (used for) operating activities: Decrease in accounts receivableDepreciationIncrease in accounts receivableLoss on sale of landNet income – Select – Decrease in inventoriesGain on sale of investmentsIncrease in accounts payableLoss on sale of landNet income – Select – Changes in current operating assets and liabilities: Decrease in accounts receivableDecrease in inventoriesDepreciationIncrease in accounts receivableNet income – Select – Cash dividendsDecrease in accounts payableDecrease in accounts receivableDecrease in inventoriesIncrease in inventories – Select – Cash dividendsDecrease in accounts payableDepreciationIncrease in accounts payableNet loss – Select – Cash dividendsDecrease in accounts payableDecrease in accrued expenses payableDepreciationNet loss – Select – Net cash flows from operating activities $fill in the blank 714d3af7901efc0_15Cash flows from (used for) investing activities: Cash dividendsCash received from sale of investmentsDepreciationGain on sale of landLoss on sale of land $- Select – Cash paid for purchase of landDepreciationGain on sale of landCash dividendsNet income – Select – Cash paid for purchase of equipmentDecrease in accrued expensesDepreciationIncrease in accounts payableIncrease in inventories – Select – Net cash flows from investing activities fill in the blank 714d3af7901efc0_22Cash flows from (used for) financing activities: Cash received from issuing common stockCash received from sale of landDecrease in accounts payableDepreciationNet income $- Select – Cash dividendsCash received from sale of landDecrease in inventoriesIncrease in accounts receivableNet income – Select – Net cash flows from financing activities fill in the blank 714d3af7901efc0_27Cash dividendsDecrease in accrued expensesIncrease in accounts receivableNet decrease in cashNet increase in cash $- Select -Cash balance, January 1, 20Y9 fill in the blank 714d3af7901efc0_30Cash balance, December 31, 20Y9 $fill in the blank 714d3af7901efc0_31 Q11Free Cash FlowSweeter Enterprises Inc. has net cash flows from operating activities of $276,000. Cash flows used for investments in property, plant, and equipment totaled $61,000, of which 75% of this investment was used to replace existing capacity.a. Determine the free cash flow for Sweeter Enterprises Inc.$fill in the blank 1b. How might a lender use free cash flow to determine whether or not to give Sweeter Enterprises Inc. a loan?Free cash flow is often used to measure the financial strength of a business. Thelessmorefree cash flow that a business has, the easier it will be for the company to pay the interest on the loan and repay the loan principal. Sweeter’s free cash flow is $fill in the blank 3, which is verystrongweak.Q12Free Cash FlowThe financial statements for Nike, Inc., are provided in Appendix C.a. Determine the free cash flow for the most recent fiscal year. Assume that 90% of the additions to property, plant, and equipment were used to maintain productive capacity. Round to the nearest thousand dollars.$fill in the blank 1 (in thousands) Q13Free Cash FlowLovato Motors Inc. has net cash flows from operating activities of $552,000. Cash flows used for investments in property, plant, and equipment totaled $344,000, of which 75% of this investment was used to replace existing capacity.Determine the free cash flow for Lovato Motors Inc.$fill in the blank 1 Q14Adjustments to Net IncomeIndirect MethodLighthouse Corporation’s accumulated depreciationequipment account increased by $9,900, while $6,400 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a loss of $7,500 from the sale of investments.Reconcile a net income of $112,000 to net cash flows from operating activities.$fill in the blank 1 Q15Changes in Current Operating Assets and LiabilitiesCovington Corporation’s comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1Accounts receivable $16,500 $19,200 Inventory 81,300 71,300 Accounts payable 27,700 23,500 Dividends payable 26,000 28,000 Adjust net income of $126,900 for changes in operating assets and liabilities to arrive at net cash flows from operating activities.$fill in the blank 1 Q16Determining Cash Flows from (Used for) Operating ActivitiesYeoman Inc. reported the following data:Net income $252,600Depreciation expense 68,800Loss on disposal of equipment 26,600Increase in accounts receivable 28,400Increase in accounts payable 10,100 Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.Cash flows from (used for) operating activities: Decrease in accounts payableDepreciation expenseGain on disposal of equipmentIncrease in accounts receivableNet income $- Select – Adjustments to reconcile net income to net cash flows from (used for) operating activities: Decrease in accounts payableDepreciation expenseGain on disposal of equipmentIncrease in accounts payableIncrease in accounts receivable – Select – Decrease in accounts receivableGain on disposal of equipmentIncrease in accounts payableIncrease in accounts receivableLoss on disposal of equipment – Select – Changes in current operating assets and liabilities: Decrease in accounts receivableDepreciation expenseGain on disposal of equipmentIncrease in accounts receivableLoss on disposal of equipment – Select – Decrease in accounts payableDepreciation expenseGain on disposal of equipmentIncrease in accounts payableLoss on disposal of equipment – Select – Net cash flows from operating activities $fill in the blank 11 Q17Effect of Transactions on Cash FlowsState the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows:a. Retired $290,000 of bonds, on which there was $2,900 of unamortized discount, for $302,000.b. Sold 12,000 shares of $30 par common stock for $60 per share.c. Sold equipment with a book value of $51,700 for $74,400.d. Purchased land for $490,000 cash.e. Purchased a building by paying $49,000 cash and issuing a $120,000 mortgage note payable.f. Sold a new issue of $270,000 of bonds at 97.g. Purchased 4,100 shares of $20 par common stock as treasury stock at $36 per share.h. Paid dividends of $1.90 per share. There were 28,000 shares issued and 4,000 shares of treasury stock. Effect Amounta. Cash paymentCash receipt $fill in the blank 2b. Cash paymentCash receipt $fill in the blank 4c. Cash paymentCash receipt $fill in the blank 6d. Cash paymentCash receipt $fill in the blank 8e. Cash paymentCash receipt $fill in the blank 10f. Cash paymentCash receipt $fill in the blank 12g. Cash paymentCash receipt $fill in the blank 14h. Cash paymentCash receipt $fill in the blank 16Q18Cash Flows from (Used for) Operating ActivitiesThe net income reported on the income statement for the current year was $133,200. Depreciation recorded on store equipment for the year amounted to $22,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Endof Year Beginningof YearCash $52,080 $47,910 Accounts receivable (net) 37,340 35,410 Merchandise inventory 50,990 53,900 Prepaid expenses 5,730 4,550 Accounts payable (merchandise creditors) 48,800 45,320 Wages payable 26,660 29,610 Question Content Area a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.Cash flows from operating activities: CashDecrease in accounts receivableDepreciationIncrease in wages payableNet income $- Select – Adjustments to reconcile net income to net cash flows from (used for) operating activities: CashDecrease in accounts payableDecrease in accounts receivableDepreciationIncrease in wages payable – Select – Changes in current operating assets and liabilities: CashDepreciationIncrease in accounts receivableIncrease in inventoriesIncrease in wages payable – Select – CashDecrease in accounts receivableDecrease in merchandise inventoryIncrease in inventoriesIncrease in prepaid expenses – Select – CashDecrease in accounts receivableIncrease in prepaid expensesIncrease in inventoriesIncrease in wages payable – Select – CashDecrease in accounts payableDepreciationIncrease in accounts payableIncrease in wages payable – Select – CashDecrease in accounts receivableDecrease in wages payableIncrease in prepaid expensesIncrease in wages payable – Select – Net cash flow from operating activities $fill in the blank 22cbb1087072f83_15Q19Cash Flows from (Used for) Operating ActivitiesThe net income reported on the income statement for the current year was $228,400. Depreciation recorded on equipment and a building amounted to $68,300 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Endof Year Beginningof YearCash $61,670 $64,750 Accounts receivable (net) 78,200 79,900 Inventories 154,180 137,660 Prepaid expenses 8,570 9,130 Accounts payable (merchandise creditors) 68,890 72,260 Salaries payable 9,930 9,000 Question Content Area a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.Cash flows from (used for) operating activities: Accounts payableDecrease in prepaid expensesDepreciationIncrease in inventoriesNet income $- Select – Adjustments to reconcile net income to net cash flows from (used for) operating activities: Accounts payableDecrease in accounts payableDecrease in accounts receivableDepreciationIncrease in accounts receivable – Select – Changes in current operating assets and liabilities: Accounts payableDecrease in accounts receivableDecrease in salaries payableDepreciationIncrease in accounts receivable – Select – Accounts payableDecrease in inventoriesIncrease in accounts receivableIncrease in inventoriesIncrease in prepaid expenses – Select – Accounts payableDecrease in prepaid expensesIncrease in accounts payableIncrease in accounts receivableIncrease in prepaid expenses – Select – Accounts payableDecrease in accounts payableDecrease in salaries payableDepreciationIncrease in accounts payable – Select – Accounts payableDecrease in salaries payableIncrease in accounts receivableIncrease in prepaid expensesIncrease in salaries payable – Select – Net cash flows from operating activities $fill in the blank 49470c00bfd6060_15 Q20Cash Flows from (Used for) Operating ActivitiesThe income statement disclosed the following items for the year:Depreciation expense $40,700Gain on disposal of equipment 23,770Net income 343,700The changes in the current asset and liability accounts for the year are as follows: Increase(Decrease)Accounts receivable $6,350 Inventory (3,610) Prepaid insurance (1,350) Accounts payable (4,300) Income taxes payable 1,350 Dividends payable 950 Question Content Area a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.Cash flows from (used for) operating activities: Depreciation expenseGain on disposal of equipmentIncrease in income taxes payableIncrease in inventoriesNet income $- Select – Adjustments to reconcile net income to net cash flows from (used for) operating activities: Decrease in accounts receivableDepreciation expenseIncrease in accounts receivableIncrease in income taxes payableLoss on disposal of equipment – Select – Decrease in prepaid insuranceGain on disposal of equipmentIncrease in accounts receivableIncrease in income taxes payableLoss on disposal of equipment – Select – Changes in current operating assets and liabilities: Decrease in income taxes payableDepreciation expenseGain on disposal of equipmentIncrease in accounts receivableIncrease in inventory – Select – Decrease in accounts receivableDecrease in inventoryGain on disposal of equipmentIncrease in inventoryIncrease in prepaid insurance – Select – Decrease in accounts receivableDecrease in prepaid insuranceGain on disposal of equipmentIncrease in prepaid insuranceLoss on disposal of equipment – Select – Decrease in accounts payableDecrease in income taxes payableDepreciation expenseGain on disposal of equipmentIncrease in accounts payable – Select – Decrease in accounts receivableDecrease in income taxes payableGain on disposal of equipmentIncrease in income taxes payableIncrease in prepaid insurance – Select – Net cash flows from operating activities $fill in the blank 0120eaf9906e057_17Q21Determining Net Income from Net Cash Flow from Operating ActivitiesCurwen Inc. reported net cash flows from operating activities of $144,500 on its statement of cash flows for a recent year ended December 31. The following information was reported in the Cash flows from (used for) operating activities section of the statement of cash flows, using the indirect method:Decrease in income taxes payable $2,700Decrease in inventories 6,800Depreciation 10,500Gain on sale of investments 4,700Increase in accounts payable 1,900Increase in prepaid expenses 1,200Increase in accounts receivable 5,100a. Determine the net income reported by Curwen Inc. for the year ended December 31.$fill in the blank 1Q22Cash Flows from Operating ActivitiesIndirect MethodSelected data derived from the income statement and balance sheet of National Beverage Co. for a recent year are as follows:Income statement data (in thousands): Net income $149,774Loss on disposal of property (149)Depreciation expense 13,226Other items involving noncash expense 837Balance sheet data (in thousands): Increase in accounts receivable 13,041Increase in inventory 7,565Increase in prepaid expenses 10,548Increase in accounts payable and other current liabilities 17,464 Question Content Area a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method for National Beverage Co. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Enter the amounts in thousands of dollars, as shown above.Cash flows from (used for) operating activities: Increase in prepaid expensesIncrease in accounts receivableNet incomeNet loss $- Select -Adjustments to reconcile net income to net cash flows from (used for) operating activities: Decrease in accounts payable and other current liabilitiesDecrease in accounts receivableDepreciation expenseIncrease in accounts receivable – Select – Decrease in accounts receivableDecrease in inventoryGain on disposal of propertyLoss on disposal of property – Select – Decrease in accounts payable and other current liabilitiesDecrease in accounts receivableIncrease in accounts receivableOther items involving noncash expense – Select – Changes in current operating assets and liabilities: Depreciation expenseIncrease in accounts receivableLoss on inventory write-down and fixed assetsNet loss – Select – Depreciation expenseDecrease in inventoryIncrease in inventoryGain on disposal of property – Select – Increase in prepaid expensesDepreciation expenseOther items involving noncash expenseGain on disposal of property – Select – Decrease in accounts payable and other current liabilitiesIncrease in accounts payable and other current liabilitiesNet incomeGain on disposal of property – Select – Net cash flows from operating activities $fill in the blank 5444befae04607f_17AccountingBusinessFinancial AccountingCOMM 1AA3Share Question
