Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Mike Roe Computers. $148.00 (89.00) 59.00
The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Mike Roe Computers. $148.00 (89.00) 59.00 MIKE ROE COMPUTERS Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales Cost of goods sold Gross margin Salaries expense $18.00 Insurance expense 11.00 Depreciation expense 4.00 Interest expense 5.30 Gains and losses: Gain on sale of equipment Loss on sale of land Income before tax Income tax expense Net income (38.30) 10.00 (1.00) 29.70 (14.85) $ 14.85 $ 14.85 Reconciliation of Net Income to Net Cash Flows from Operating Activities ($ in millions) Net income Adjustments for noncash effects: Decrease in accounts receivable Gain on sale of equipment Increase in inventory Increase in accounts payable Increase in salaries payable Depreciation expense Decrease in bond discount Decrease in prepaid insurance Loss on sale of land Increase in income tax payable Net cash flows from operating activities 5.20 (10.00) (5.00) 8.00 2.00 4.00 2.65 1.00 1.00 5.00 $ 28.70 Required: 1. Provide the summary journal entries which shows the cash flow for each of the following for Mike Roe Computers during the reporting period: (a) received from customers, (b) paid to suppliers, (c) paid to employees, (d) paid for interest, (e) paid for insurance, (f) paid for income taxes. 2. Prepare the cash flows from operating activities section of the statement of cash flows (direct method). View transaction list Journal entry worksheet
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started