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Chapter 23: Q5BE (page 1373)
Use the information from BE23-4 for Bloom Corporation. Prepare the cash flows from operating activities section of Bloom鈥檚 2017 statement of cash flows using the indirect method.
Cash flow from operating activities is$41,000.
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Data for Krauss Company are presented in E23-5.
Instructions
Prepare the operating activities section of the statement of cash flows using the indirect method.
Broussard Company reported net income of \(3.5 million in 2017. Depreciation for the year was \)520,000, accounts receivable increased \(500,000, and accounts payable increased \)300,000. Compute net cash flow from operating activities using the indirect method.
Why is it necessary to convert accrual-based net income to a cash basis when preparing a statement of cash flows?
Moxley Corporation had January 1 and December 31 balances as follows.
1/1/17 12/31/17
Inventory \(95,000 \)113,000
Accounts payable 61,000 69,000
For 2017, cost of goods sold was $500,000. Compute Moxley鈥檚 2017 cash payments to suppliers.
In 2017, Leppard Inc. issued 1,000 shares of \(10 par value common stock for land worth \)40,000.
(a) Prepare Leppard鈥檚 journal entry to record the transaction.
(b) Indicate the effect the transaction has on cash.
(c) Indicate how the transaction is reported on the statement of cash flows.
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