Solved

Cash Flows from Operating Activities-Indirect Method
the Data Below Are

Question 85

Essay

Cash flows from operating activities-indirect method
The data below are taken from the financial statements of the Rutherford Corporation:
 Income Statement: 2009 Net income $840,000 Depreciation expense 170,000 Amortization of patent 30,000 Gain on sale of equipment 110,000 Balance Sheet: 12/31/0912/31/08 Accounts receivable $710,000$680,000 Inventory 840,000800,000 Prepaid expenses 30,00035,000 Accounts payable 660,000630,000 Accrued expenses payable 430,000440,000\begin{array}{|l|r|r|}\hline \text { Income Statement: } & {\mathbf{2 0 0 9}} \\\hline & \\\hline \text { Net income } & \$ 840,000\\\hline \text { Depreciation expense } & 170,000 \\\hline \text { Amortization of patent } &30,000 \\\hline \text { Gain on sale of equipment } & 110,000 \\\hline\\\hline \text { Balance Sheet: } & \mathbf{1 2 / 3 1 / 0 9} & \mathbf{1 2 / 3 1 / 0 8} \\\hline & & \\\hline \text { Accounts receivable } & \$ 710,000 & \$ 680,000 \\\hline \text { Inventory } & 840,000 & 800,000 \\\hline \text { Prepaid expenses } & 30,000 & 35,000 \\\hline \text { Accounts payable } & 660,000 & 630,000 \\\hline \text { Accrued expenses payable } & 430,000 & 440,000 \\\hline\end{array}
Complete the partial statement of cash flows for the year ended December 31, 2009, showing the computation of net cash flows from operating activities by the indirect method:
Cash flows from operating activities-indirect method The data below are taken from the financial statements of the Rutherford Corporation: \begin{array}{|l|r|r|}\hline \text { Income Statement: } & {\mathbf{2 0 0 9}} \\ \hline & \\ \hline \text { Net income } & \$ 840,000\\ \hline \text { Depreciation expense } & 170,000 \\ \hline \text { Amortization of patent } &30,000 \\ \hline \text { Gain on sale of equipment } & 110,000 \\ \hline\\ \hline \text { Balance Sheet: } & \mathbf{1 2 / 3 1 / 0 9} & \mathbf{1 2 / 3 1 / 0 8} \\ \hline & & \\ \hline \text { Accounts receivable } & \$ 710,000 & \$ 680,000 \\ \hline \text { Inventory } & 840,000 & 800,000 \\ \hline \text { Prepaid expenses } & 30,000 & 35,000 \\ \hline \text { Accounts payable } & 660,000 & 630,000 \\ \hline \text { Accrued expenses payable } & 430,000 & 440,000 \\ \hline \end{array} Complete the partial statement of cash flows for the year ended December 31, 2009, showing the computation of net cash flows from operating activities by the indirect method:

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q8: The "bottom line" in a statement of

Q23: The Nelson Corporation reported net income in

Q46: Cash flows from operating activities include all

Q81: Empire Company uses the indirect method to

Q84: The following information was obtained from the

Q88: The cost of the land sold during

Q119: If accounts receivable increased during the year,deducting

Q135: Any "non-cash" investing and financing transactions should

Q140: Alexander Company reported an increase of $185,000

Q154: [The following information applies to the questions