Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following income statement and selected statement of financial position account data are available for Royce Interiors Co. at 31 December 2013: ROYCE INTERIORS CO.

image text in transcribed

image text in transcribed

The following income statement and selected statement of financial position account data are available for Royce Interiors Co. at 31 December 2013: ROYCE INTERIORS CO. Income Statement For the Year Ended 31 December 2013 Revenue: Net sales Dividend income Interest income Gain on sales of equity securities $ 2,600,000 55,000 40,000 3,000 $ 2,698,000 Total revenue and gains Costs and expenses Cost of goods sold Operating expenses Interest expense Income tax expense $ 1,300,000 300,000 60,000 110,000 Total costs and expenses 1,770,000 Profit for the year $ 928,000 End of Year Beginning of Year Selected account balances: Accounts receivable Accrued interest receivable Inventories Short-term prepayments Accounts payable (suppliers of goods) Accrued operating expenses payable Accrued interest payable Accrued income taxes payable $ 450,000 9,000 575,000 9,000 415,000 86,000 10,000 20,000 S 440,000 3,000 550,000 8,000 410,000 90,000 8,000 22,000 Additional Information 1. Dividend revenue is recognized on the cash basis. All other income statement amounts are recognized on the accrual basis. 2. Operating expenses include depreciation expense of $49,000. Prepare a partial statement of cash flows for the current year, showing the computation of net cash flows from operating activities using the indirect method. (Input all amounts as positive values. Omit the "$" sign in your response.) ROYCE INTERIORS CO. Income Statement For the Year Ended 31 December 2013 Cash flows from operating activities: (Click to select) (Click to select) (Click to select) (Click to select) $ 0 III $ $ > > Subtotal (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) > > Net cash flow from operating activities $

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

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, George Foster, Srikant M. Datar, Howard D. Teall

4th Canadian Edition

0131971905, 978-0131971905

More Books

Students also viewed these Accounting questions

Question

=+5. What do you want them to think?

Answered: 1 week ago

Question

=+What the product does for the end-user.)

Answered: 1 week ago