Based on the following income statement and balance sheet for Bankowski Corporation, determine the cash flows from operating activities using the indirect method.Bankowski CorporationIncome StatementFor Year Ended December 31, 20X2Sales?$504,000?Cost of goods sold $327,600 ??Depreciation expense33,000 ??Other operating expenses 125,500 (486,100)Other gains (losses):??? Gain on sale of equipment? 5,200?Income before taxes?$ 23,100?Income tax expense? (4,800)Net income?$ 18,300?????Bankowski CorporationBalance SheetsAt December 31Assets20X2?20X1? Cash$ 62,650? $ 55,800 ? Accounts receivable 21,000 ? 29,000 ? Inventory 58,000 ? 52,100 ? Equipment
240,000 ? 222,000 ? Accumulated depreciation (97,000)?( 96,000) Total assets$284,650 ?$262,900 ?????? Liabilities:???? Accounts payable $ 28,400 ? $ 23,700 ? Income taxes payable 1,050 ? 1,200 ? Total liabilities$ 29,450?$ 24,900?Equity:???? Common stock $106,000 ? $106,000 ? Paid-in Capital in excess of par value 18,000 ? 18,000 ? Retained earnings 131,200 ? 114,000 ? Total equity$255,200?$238,000?Total liabilities and equity$284,650?$262,900?
What will be an ideal response?
| Bankowski Corporation Cash flows from operating activities (indirect method) For Year Ended December 31, 20X2 | |||
| Net income | ? | ? | $18,300 |
| Adjustments to reconcile net income to net cash | ? | ? | ? |
| provided by operating activities: | ? | ? | ? |
| Decrease in accounts receivable | $ 8,000 | ? | ? |
| Increase in inventory | (5,900 | )? | ? |
| Increase in accounts payable | 4,700 | ? | ? |
| Decrease in taxes payable | (150 | )? | ? |
| Depreciation expense | 33,000 | ? | ? |
| Gain on sale of equipment | (5,200 | )? | ? |
| Total adjustments | ? | ? | 34,450 |
| Net cash provided by operations | ? | ? | $52,750 |
| ? | ? | ? | ? |
You might also like to view...
What should be done when explaining and justifying the routine request in the body of the message?
A) Address multiple topics in one question. B) Offer apologies for the inconvenience. C) Put the most important question last. D) Offer incentive for the audience to comply. E) Break down complex requests into specific questions.
Pasha Company produced 50 defective units last month at a unit manufacturing cost of $30. The defective units were discovered before leaving the plant. Pasha can sell them "as is" for $20 or can rework them at a cost of $15 and sell them at the regular price of $50. Which of the following is not relevant to the sell-or-rework decision?
A) $30 manufacturing cost B) $20 selling price of defective units C) $15 for rework D) $50 regular selling price E) all are relevant
According to the UCC, a computer purchased by a CPA for use in her office will be classified as inventory
a. True b. False Indicate whether the statement is true or false
What do financial economists mean when they discuss the conditional expectation of the future spot exchange rate?
What will be an ideal response?