Please help, what are the answers to this question? Cengage ,\' CengageNOMV? Onl
ID: 2393132 • Letter: P
Question
Please help, what are the answers to this question?
Cengage ,' CengageNOMV? Online > yAn me Amme a Arna on?Youlube Other buokmarks ::: Chapter 16 Homework eBook Show Me How PE.16-04.BLANKSHEETAL... 2. PR.16-01.ALGO 3. EX1 4. EX.16-03 5. EX.16-04 Instructions Amount Descriptions Statement of Cash Flows-Operating Activities Final Question Instructions 16-07 BLANKSHEETAL... The income statement disciased the tollowing items ter the year Depreciatiorn expeise Cain on disposal of equipment Net income 48,500 26,900 577,400 2 PE.16-03.BLANKSHEETAL The changes in the current assets nd yaccounts tor the year are s tolws Increase (Decresae) Accounts receiwable Inventory Prepaid insurance Accounts payable Inicorme taxes payable Dividends payable $8,190 (4 za0) (2,020) 7,000) 1,390 2,.480 Check My Work PreviousNext Progress: 3/6 items 5:31 PM Type here to search ???@.o. e? 6/26/2018Explanation / Answer
Answer:
1
Cash flow statement
(partial)
Amount $
Amount $
Cash flow from Operating activity
Net income
577400
Adjustment to reconcile Net income to net cash flow
from operating activity
Depreciation
48500
Gain on Disposal of Equipment
-26900
Increase in Accounts Receivable
-8190
Decrease in inventory
4280
Decrease in Prepaid Insurance
2020
Decrease in Accounts payable
-7000
Increase in Income tax payable
1390
Increase in Dividend payable
2480
Net changes
16580
Cash flow from Operating activity
593980
2
Cash flow from Operating activity is differ from the net income because it does not use accrual basis of accounting for example revenue are recorded on the income statement when they are earned
Cash flow statement
(partial)
Amount $
Amount $
Cash flow from Operating activity
Net income
577400
Adjustment to reconcile Net income to net cash flow
from operating activity
Depreciation
48500
Gain on Disposal of Equipment
-26900
Increase in Accounts Receivable
-8190
Decrease in inventory
4280
Decrease in Prepaid Insurance
2020
Decrease in Accounts payable
-7000
Increase in Income tax payable
1390
Increase in Dividend payable
2480
Net changes
16580
Cash flow from Operating activity
593980