Instructions Amount Descriptions x Instructions During the year, Hepworth Company earned a net income of $61,725. Beginning and ending balances for the year for selected accounts are as follows: Account Beginning Ending Cash $108,000 $126,600 Accounts receivable 67,500 99,750 Inventory 36,000 52,500 Prepaid expenses 27,000 30,000 Anuntati.donanition 04 1.60 eBook Operating Cash Flows Instructions Amount Descriptions Instructions Accumulated depreciation 81,000 91,500 Accounts payable 45,000 55,125 Wages payable 27.000 15,000 There were no financing or investing activities for the year. The above balances reflect all of the adjustments needed to adjust net income to operating cash flows. Required: 1. Prepare a schedule of operating cash flows using the indirect method 2. Suppose that all the data are used in Requirement + except that the ending accounts payable and cash balances are not known Assume also that you know that the operating cash flow for the year was Operating Cash Flows Instructions Amount Descriptions Instructions There were no financing or investing activities for the year. The above balances reflect all of the adjustments needed to adjust net income to operating cash flows. Required: 1. Prepare a schedule of operating cash flows using the indirect method 2. Suppose that all the data are used in Requirement 1 except that the ending accounts payable and cash balances are not known. Assume also that you know that the operating cash flow for the year was 520,475. What is the ending balance of accounts payable? 3. Conceptual Connection: Hepworth has an opportunity to buy some equipment that will significantly increase productivity. The equipment costs $25,000. Assuming exactly the same data used for Requirement 1, can Hepworth buy the equipment using this year's operating cash flows? If not, what would you suggest be done? Check My Work Previous Next Instructions Amount Descriptions Instructions Amount Descriptions Refer to the list below for the exact wording of an amount description within your Statement of Cash Flows. Amount Descriptions Decrease in accounts payable Decrease in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in wages payable Depreciation expense Increase in accounts payable Increase in accounts receivable Increaca in inventoni Check My Work Previous Next Operating Cash Flows Instructions Amount Descriptions Instructions Amount Descriptions x x VOUCOS Picpal GAVONSES Decrease in wages payable Depreciation expense Increase in accounts payable Increase in accounts receivable Increase in inventory Increase in prepaid expenses Increase in wages payable Net cash from operating activities Net income All work saved Save and Exit Submit Assignment for Grading AMOUN WESCpons Instructions Amount Descriptions Operating Cash Flows - Indirect Method Hepworth Company Schedule of Operating Cash Flows 1 Cash flows from operating activities: 2 Add (deduct) adjusting items: 3 47 Check My Work Previous Next instructions Instructions x Amount Descriptions Operating Cash Flows - Indirect Method Final Questions X 2. Suppose that all the data are used in Requirement 1 except that the ending accounts payable and cash balances are not known. Assume also that you now that the operating cash flow for the year was $20,475. What is the ending balance of accounts payable? $ 3. Conceptual Connection: Hepworth has an opportunity to buy some equipment that will significantly increase productivity. The equipment costs $25,000. Assuming exactly the same data used for Requirement 1, can Hepworth buy the equipment using this year's operating cash flows? If not, what would you suggest be done? Previous Next Check My Work
