Reconciling Net Income and Cash Flow from Operations Using FSET

For fiscal year $2015,$ Beyer GMBH had the following summary information available concerning its operating activities. The company had no investing or financing activities this year.

$1.$ Sales of merchandise to customers on credit $1,014,800$

$2.$ Sales of merchandise to customers for cash $183,000$

$3.$ Cost of merchandise sold on credit $640,200$

$4.$ Cost of merchandise sold for cash $126,800$

$5.$ Purchases of merchandise from suppliers on credit $703,200$

$6.$ Purchases of merchandise from suppliers for cash $95,400$

$7.$ Collections from customers on accounts receivable $966,800$

$8.$ Cash payments to suppliers on accounts payable $680,400$

$9.$ Operating expenses $($all paid in cash$)344,600$

Required

a$.$ Enter the items above into the Financial Statement Effects Template. Under noncash assets, use two separate columns for accounts receivable and inventories. Calculate the totals for each column.

Note: Use negative signs with answers, when appropriate.

Balance Sheet Income Statement

Transaction Cash Asset $+$ Accounts

Receivable $+$ Inventories $=$ Accounts

Payable $+$ Cont'd Capital $+$ Earned

Capital Revenue $-$ Expenses $=$ Net Income

$1$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

$=$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

Answer

$0$

$-$ Answer

$0$

$=$ Answer

$0$

$2$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

$=$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

Answer

$0$

$-$ Answer

$0$

$=$ Answer

$0$

$3$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

$=$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

Answer

$0$

$-$ Answer

$0$

$=$ Answer

$0$

$4$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

$=$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

Answer

$0$

$-$ Answer

$0$

$=$ Answer

$0$

$5$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

$=$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

Answer

$0$

$-$ Answer

$0$

$=$ Answer

$0$

$6$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

$=$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

Answer

$0$

$-$ Answer

$0$

$=$ Answer

$0$

$7$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

$=$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

Answer

$0$

$-$ Answer

$0$

$=$ Answer

$0$

$8$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

$=$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

Answer

$0$

$-$ Answer

$0$

$=$ Answer

$0$

$9$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

$=$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

Answer

$0$

$-$ Answer

$0$

$=$ Answer

$0$

Totals Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

$=$ Answer

$0$

$+$ Answer

$0$

$+$ Answer

$0$

Answer

$0$

$-$ Answer

$0$

$=$ Answer

$0$

b$.$ What was the company's net income for the year?

$$Answer

$0$

What was the cash flow from operating activities? $($Use the direct method.$)$

$$Answer

$0$

c$.$ Indicate the direction and amounts by which each of the following accounts changed during the year. If the account decreased, enter as a negative number.

$1.$ Accounts receivable Answer

$0$

$2.$ Merchandise inventory Answer

$0$

$3.$ Accounts payable Answer

$0$

d$.$ Using your results above, prepare the operating activities section of the statement of cash flows using the indirect format.

Note: Use negative signs with answers, when appropriate.

Net income Answer

$0$

Change in accounts receivable Answer

$0$

Change in inventories Answer

$0$

Change in accounts payable Answer

$0$

Cash flow from operating activities Answer

$0$