Question
1. Norway Hotel had net income for 2020 of $130,000. Included in net income was depreciation of $2,400, a gain on sale of land of
1. Norway Hotel had net income for 2020 of $130,000. Included in net income was depreciation of $2,400, a gain on sale of land of $6,800, loss on sale of equipment of $9,000 and income taxes of $28,400. Using the information given, calculate the net cash provided (used) by operating activities using the indirect method. Assume that the balances of current assets (except cash) and current liabilities remain the same as last year.
Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in cash. Net cash provided (used) by operating activities = $
2.Use the following information to prepare the operating activities section of a statement of cash flows for Jon's Catering Company for 2020 using the indirect method.
Net Income | $262,000 |
Decrease in food and beverage inventory | $26,200 |
Decrease in accounts payable | $14,000 |
Depreciation expense | $44,000 |
Increase in accounts receivable | $13,000 |
Gain on sale of land | $22,300 |
Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in cash.
Jon's Catering Company Cash Flow Statement For the Year Ended December 31, 2020 | ||
Cash Flow from Operating Activities | ||
Net Income | Answer
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Adjustments for Non-Cash Items | ||
Depreciation expense | Answer
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Gain on sale of land | Answer
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Change in Current Assets and Current Liabilities | ||
Increase in accounts receivable | Answer
| |
Decrease in food and beverage inventory | Answer
| |
Decrease in accounts payable | Answer
| |
Net Cash Provided (Used) by Operating Activities | Answer
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