Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculating Net Cash Flow From Operating Activities (Indirect Method) The following information was obtained from Galena Company's comparative balance sheets. Assume that Galena Company's 2016

image text in transcribed

Calculating Net Cash Flow From Operating Activities (Indirect Method) The following information was obtained from Galena Company's comparative balance sheets. Assume that Galena Company's 2016 income statement showed depreciation expense of $9,600, a gain on sale of investments of $10.800, and net income of $54,000. Dec 31, 2016 Dec 31, 2015 Cash $23,000 $10,000 Accounts receivable 52,900 42.000 Inventory 66,000 58,300 Prepaiden 7,200 Lang.com investments 25,200 40,200 Flant assets 180,000 127.200 Accumulated depreciation 48,000 3R400 Accounts payable 28,800 20.000 Income tax payable 4,800 7,200 Cominon stock 145,200 110.400 Farained earrings 127,260 199,200 Calculate the net cash flow from operating activities using the indirect method. Instructions: Use negative signs with answers that reduce cash provided by operating activities. Enter accounts in alphabetical order, when needed. Net cash flow from operating activities Dec 31, 2016 $ n Add(deduct items to convert nec income tu cash basis Depreciation U Change in operating asse U . n U Prepaident Change in operating liabilities Accounts payaale n U Nel cast provided by operatives $ Please answer all parts of the

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

Sound Investing, Chapter 19 - Related-Party Transaction Ruse

Authors: Kate Mooney

1st Edition

0071719415, 9780071719414

More Books

Students also viewed these Accounting questions

Question

Question 4 of 6 Answered: 1 week ago

Answered: 1 week ago