The Black Corporation has provided the following information: Net income$560,000 Increase in prepaid expenses 14,000 Amortization of discount on bonds payable 10,000 Decrease in accounts payable 20,000 Increase in inventory 21,000 Dividends declared 39,000 Dividends paid 36,000 Increase in accounts receivable 30,000 Increase in wages payable 16,000 Increase in deferred tax liability 41,000 Required:
Determine the cash flow from operating activities using the indirect method of cash flow statement presentation.
What will be an ideal response?
$542,000 = $560,000 ? $14,000 + $10,000 ? $20,000 ? $21,000 ? $30,000 + $16,000 + $41,000.
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Wright Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $1,000,000 and a 5-year life. There is no salvage value for the equipment. The increase in net income each year of the equipment's life would be as follows: Year 1$375,000Year 2$350,000Year 3$285,000Year 4$230,000Year 5$185,000What is the payback period?
A. 2.96 years B. 2.06 years C. 3.51 years D. 1.77 years
Which of the following is true regarding whether the interest of a limited partner in a limited partnership is considered a security?
a. Such an interest is considered a security only if the limited partnership involves an investment in real estate. b. Such an interest is not considered a security because a partnership, not an investment scheme, is involved. c. Such an interest is rarely considered a security because limited partners, to protect their limited liability, are prohibited by law from taking part in the control of the partnership business. d. Such an interest is almost always considered a security because limited partners, to protect their limited liability, are prohibited by law from taking part in the control of the partnership business.
QuickFreeze Storage, a bailee, holds goods for Restaurant Purveyor, Inc, which has contracted to sell the goods to Seafood Dining Company. The goods are to be delivered without being moved. The risk of loss will pass to Seafood Dining when it receives
a. a copy of Restaurant Purveyor'scontract with QuickFreeze Storage. b. a copy of Restaurant Purveyor'scontract with Seafood Dining. c. a negotiable document of title. d. a notice that Seafood Dining's payment for the goods has cleared.
Regulation S-X presents the rules for preparing all of the following except:
A. management's discussion. B. auditor's report. C. financial statements. D. footnotes.