1)For each item listed below, indicate the effect on net income inarriving at cash...1)For...

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Accounting

1)
For each item listed below, indicate the effect on net income inarriving at cash flows from operations by choosing one of thefollowing code letters.
                                                                Code
       Cash Flows fromOperating Activities
             Addto NetIncome                                         A
             Deductfrom NetIncome                                 D
      1.    A decreasein accounts receivable
      2.    Increase ininventory
      3.    Increase inprepaid expenses
      4.    A decreasein accounts payable

      5.    Decrease inaccrued liabilities
      6.    Increase inincome taxes payable
      7.    Depreciationexpense
      8.    Loss on saleof investment
      9.    Gain ondisposal of equipment
    10.    Depletion expense
2)
Please complete the following:
NetIncome.........................................................................................     $177,000
Adjustments to reconcile net income to net cash provided byoperating activities:
       Depreciation expense,$15,000........................................................     ___
       Increase in accountsreceivable,$45,000...........................................     _
       Increase in inventory,$22,000.........................................................     _
       Decrease in accountspayable,$11,800.............................................     _
       Increase in incometaxes payable,$1,500..........................................     _
       Gain on sale of land,$5,000............................................................     _
       Net cash provided(used) by operatingactivities..................................     _____

Answer & Explanation Solved by verified expert

4.5 Ratings (835 Votes)

1) Classification

1. A decrease in accounts receivable	A
2. Increase in inventory	D
3. Increase in prepaid expenses	D
4. A decrease in accounts payable	D
5. Decrease in accrued liabilities	D
6. Increase in income taxes payable	A
7. Depreciation expense	A
8. Loss on sale of investment	A
9. Gain on disposal of equipment	D
10. Depletion expense	A

2) Calculate following

Net income		177000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	15000
Increase in account receivable	-45000
Increase inventory	-22000
Decrease account payable	-11800
Increase in income tax payable	1500
Gain on Sale of land	-5000
		-67300
Net Cash provided (used) by operating activities		109700

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In: Accounting1)For each item listed below, indicate the effect on net income inarriving at cash...1)For each item listed below, indicate the effect on net income inarriving at cash flows from operations by choosing one of thefollowing code letters. Code Cash Flows fromOperating Activities Addto NetIncome A Deductfrom NetIncome D 1. A decreasein accounts receivable 2. Increase ininventory 3. Increase inprepaid expenses 4. A decreasein accounts payable 5. Decrease inaccrued liabilities 6. Increase inincome taxes payable 7. Depreciationexpense 8. Loss on saleof investment 9. Gain ondisposal of equipment 10. Depletion expense2)Please complete the following:NetIncome......................................................................................... $177,000Adjustments to reconcile net income to net cash provided byoperating activities: Depreciation expense,$15,000........................................................ _______ Increase in accountsreceivable,$45,000........................................... _______ Increase in inventory,$22,000......................................................... _______ Decrease in accountspayable,$11,800............................................. _______ Increase in incometaxes payable,$1,500.......................................... _______ Gain on sale of land,$5,000............................................................ _______ Net cash provided(used) by operatingactivities.................................. _______