Problem 12-5A Bonita Company Income Statement For the Year Ended December 31, 20
ID: 2582670 • Letter: P
Question
Problem 12-5A
Bonita Company
Income Statement
For the Year Ended December 31, 2017
$1,076,700
$681,540
61,050
17,760
760,350
316,350
62,160
$254,190
2017
2016
Adjustments to reconcile net income to
Problem 12-5A
Bonita Company’s income statement contained the condensed information below.Bonita Company
Income Statement
For the Year Ended December 31, 2017
$1,076,700
Operating expenses, excluding depreciation$681,540
Depreciation expense61,050
Loss on disposal of plant assets17,760
760,350
Income before income taxes316,350
Income tax expense62,160
Net income$254,190
Bonita Company’s balance sheet contained the comparative data at December 31.
2017
2016
Accounts receivable $77,700 $66,600 Accounts payable 45,510 35,520 Income taxes payable 14,430 7,770Accounts payable pertain to operating expenses.
Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Bonita Company
Partial Statement of Cash Flows
December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Income Taxes Payable Depreciation Expense Gain on Disposal of Plant Assets Increase in Accounts Payable Increase in Accounts Receivable Increase in Income Taxes Payable Loss on Disposal of Plant Assets Net Income
$Adjustments to reconcile net income to
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Income Taxes Payable Depreciation Expense Gain on Disposal of Plant Assets Increase in Accounts Payable Increase in Accounts Receivable Increase in Income Taxes Payable Loss on Disposal of Plant Assets Net Income
$Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Income Taxes Payable Depreciation Expense Gain on Disposal of Plant Assets Increase in Accounts Payable Increase in Accounts Receivable Increase in Income Taxes Payable Loss on Disposal of Plant Assets Net Income
Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Income Taxes Payable Depreciation Expense Gain on Disposal of Plant Assets Increase in Accounts Payable Increase in Accounts Receivable Increase in Income Taxes Payable Loss on Disposal of Plant Assets Net Income
Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Income Taxes Payable Depreciation Expense Gain on Disposal of Plant Assets Increase in Accounts Payable Increase in Accounts Receivable Increase in Income Taxes Payable Loss on Disposal of Plant Assets Net Income
Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Income Taxes Payable Depreciation Expense Gain on Disposal of Plant Assets Increase in Accounts Payable Increase in Accounts Receivable Increase in Income Taxes Payable Loss on Disposal of Plant Assets Net Income
Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash used by Financing Activities Net Cash used by Investing Activities Net Cash used by Operating Activities Net Decrease in Cash Net Increase in Cash
$Explanation / Answer
Bonita Company
Cash flow statement for the year ended
Indirect method
Particulars
Amount
Amount
Cash flows from operating activities
Net income
254190
Adjustments:
Depreciation
61050
Loss on disposal of plant assets
17760
Increase in Accounts receivable
-11100
Increase in accounts payable
9990
Increase in income taxes payable
6660
84360
338550
Bonita Company
Cash flow statement for the year ended
Indirect method
Particulars
Amount
Amount
Cash flows from operating activities
Net income
254190
Adjustments:
Depreciation
61050
Loss on disposal of plant assets
17760
Increase in Accounts receivable
-11100
Increase in accounts payable
9990
Increase in income taxes payable
6660
84360
338550