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3 questions: Cash flow indirect method & Cash Payments to Stockholders:

Question 1) The net income reported on the income statement for the current year was $310,500. Depreciation recorded on equipment and a building amounted to $92,800 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: (Picture below).

Prepare the "cash flows from 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. (Please refer to the picture below for the numbers):

Question 2: The net income reported on the income statement for the current year was $153,200. Depreciation recorded on store equipment for the year amounted to $25,300. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: (Picture below)

Prepare the "Cash flow from 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. (Please refer to the picture below for the numbers):

Question 3) The board of directors declared cash dividends totaling $174,500 during the current year. The comparative balance sheet indicates dividends payable $41,900 at the beginning of the year and $37,700 at the end of the year. What was the amount of cash payments to stockholders during the year?

Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $310,500. Depreciation recorded on equipment and a building amounted to $92,800 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $82,280 $87,220 Accounts receivable (net) 104,330 107,630 Inventories 205,700 185,430 Prepaid expenses 11,440 12,300 Accounts payable (merchandise creditors) 91,910 97,340 Salaries payable 13,250 12,120 a. Prepare the "Cash Flows from 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. Statement of Cash Flows (partial) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Decrease in accounts receivable 0 0 11100 Increase in inventories Decrease in prepaid expenses Decrease in accounts payable Increase in salaries payable Net cash flow from operating activities Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $153,200. Depreciation recorded on store equipment for the year amounted to $25,300. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Cash End of Year Beginning of Year $58,980 $54,260 42,290 40,100 Accounts receivable (net) Inventories 57,740 61,040 Prepaid expenses 6,490 5,150 Accounts payable (merchandise creditors) 55,260 51,330 Wages payable 30,200 33,530 cash flows, using the Indirect method. Use the minus sign indicate cash outflows, cash payments, decreases in cash, or any a. Prepare the "Cash flows from operating activities" section of the statement negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Net Income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes current operating assets and liabilities: Increase in accounts receivable Decrease in inventories Increase in prepaid expenses 10000 0 Increase in accounts payable Decrease in wages payable Net cash flow from operating activities

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