Cash Accounts Receivable Inventory Prepaid Expenses Land Equipment Accum Depreci
ID: 2591221 • Letter: C
Question
Cash Accounts Receivable Inventory Prepaid Expenses Land Equipment Accum Depreciation- Equipment 2015 40,000 77,000 132,000 2.140 125,000 450,000 (135,000) $701 140 2014 $57,000 64,000 140,000 16,540 150,000 425,000 32.000) $760.540 Total Assets Accounts Payable Bonds Payable Common Stock: $1 par Additional Paid in Capital Retained Earnings $33,000 235,000 220,000 50,000 163 140 $701.140 $45,000 265,000 210,000 40,000 200.540 760.540 Total Liabilities & Equity Additional Information 1. Net income for 2015 was $26,890 2 Land was sold for cash at a loss of $2000 3. Cash dividends were paid during the year 4. Equipment was purchased for cash. In addition, pquipment costing $40,000 with a book value of $13,000 was sold for $14,000 cash What is the cash Sow from operating activities for 20152 A S85.290 O B $86.29o C. $108,290 O D $84 290 E $58.290Explanation / Answer
Answer:- The net cash flow from opreating activities for 2015 is $58290 (Option E).
Explanation:- 1)-
2)-Gain on sale of Equipment = Sale value - Book vale
=$14000-$13000
=$1000
Statement of Cash Flow (Using Indirect Method) For the year ended 2015 Particulars Amount $ $ Net Income 26890 Adjustments to reconcile net income to net cash provided by opreating activities Adjustment for non cash effects Gain on sale of equipment 1000 Depreciation 43000 Change in opreating assets & liabilities Increase in Accounts Receiviable -13000 Decrease in Inventory 8000 Decrease in Prepaid expense 4400 Decrease in Accounts payable -12000 Net cash flow from opreating activities 58290