Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

asap Riverbed Co. reported $144,300 of net income for 2025 . The accountant, in preparing the statement of cash flows, noted the following items occurring

asap
image text in transcribed
image text in transcribed
Riverbed Co. reported $144,300 of net income for 2025 . The accountant, in preparing the statement of cash flows, noted the following items occurring during 2025 that might affect cash flows from operating activities. 1. Riverbed purchased 100 shares of treasury stock at a cost of $20 per share. These shares were then resold at $25 per share. 2. Riverbed sold 100 shares of IBM common at $220 per share. The acquisition cost of these shares was $140 per share. There were no unrealized gains or losses recorded on this imvestment in 2025 . 3. Riverbed revised its estimate for bad debts. Before 2025, Riverbed's bad debt expense was 196 of its receivables. In 2025 , this percentage was increased to 2%. Net accounts receivable decreased by $12,200 during 2025 . 4. Riverbed issued 500 shares of its $10 par common stock for a patent. The market price of the shares on the date of the transaction was $23 per share. 5. Depreciation expense is $39,800. 6. Riverbed Co. holds 40% of the Nirvana Company's common stock as a long-term irvestment. Nirvana Company reported $27,900 of net income for 2025 7. Nirvana Company paid a total of $1,900 of cash dividends to all investees in 2025 . 8. Riverbed declared a 10k stock dividend. One thousand shares of $10 par common stock were distributed. The market price at date of issuance was $20 per share. Prepare a schedule that shows the net cash flow from operating activities using the indirect method. Assume no items other than those listed above affected the computation of 2025 net cash flow from operating activities. (Show amounts that decrease cash flow with either a-signes, 15,000 or in parentheis es (15,000) Prepare a schedule that shows the net cash flow from operating activities using the indirect method. Assume no items other than thoselisted above affected the computation of 2025 net cash flow from operating activities. (Show amounts that decrease cash flow with

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance services an integrated approach

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan

16th edition

978-0134075754, 134075757, 134065824, 978-0134065823

More Books

Students also viewed these Accounting questions

Question

How might Elon's drug use affect his life in the future?

Answered: 1 week ago