Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dani Trading Inc. (DTI) is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its

Dani Trading Inc. (DTI) is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:

Ending Balance Beginning Balance
Cash $ 85,600 $ 102,500
Accounts receivable 69,500 74,800
Inventory 93,300 85,000
Property, plant, and equipment 249,000 238,000
Less accumulated depreciation (83,000 ) (59,500 )
Total assets $ 414,400 $ 440,800
Accounts payable $ 54,400 $ 96,700
Income taxes payable 42,300 54,100
Bonds payable 102,000 85,000
Common stock 119,000 102,000
Retained earnings 96,700 103,000
Total liabilities and stockholders equity $ 414,400 $ 440,800

During the year, DTI paid a $10,200 cash dividend and it sold a piece of equipment for $5,100 that had originally cost $11,400 and had accumulated depreciation of $7,600. The company did not retire any bonds or repurchase any of its own common stock during the year.

Required:

How much depreciation would the company add to net income on its statement of cash flows?

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

Step: 3

blur-text-image

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

Accounting Business Reporting For Decision Making

Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver

6th Edition

978-0730363415, 0730363414

More Books

Students also viewed these Accounting questions

Question

=+24. Friday the 13th, accidents. The researchers in Exercise

Answered: 1 week ago