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This exercise is stumping me- Indirectcalculationofoperatingcashflows SpecialtyServicesInc.reportedanetincomeof$116,000fortheyearjustended,whichincludesan$18,000gainonthesaleoflong-terminvestments.Thefollowingdatawereobtainedfromcomparativebalancesheets: Oct.31,20X2 Oct.31,20X1 Tradeaccountsreceivable $249,000 $203,000 Merchandiseinventory 232,000 308,000 Accumulateddepreciation:equipment 124,000 65,000 Accountspayable 194,000 124,000 Accruedliabilities 41,000 73,000 Therewerenopurchasesordisposalsofequipmentduringtheyear.Thelong-terminvestmenthadacarrying(book)valueof$77,000andwassoldforcashonJune15.Onthebasisoftheprecedinginformation,determinethecashprovidedbyoperatingactivitiesfromNovember1,20X1throughOctober31,20X2.Thefirmusestheindirectmethodofstatementpreparation.
- This exercise is stumping me-
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- IndirectcalculationofoperatingcashflowsSpecialtyServicesInc.reportedanetincomeof$116,000fortheyearjustended,whichincludesan$18,000gainonthesaleoflong-terminvestments.Thefollowingdatawereobtainedfromcomparativebalancesheets:
Oct.31,20X2 Oct.31,20X1 Tradeaccountsreceivable $249,000 $203,000 Merchandiseinventory 232,000 308,000 Accumulateddepreciation:equipment 124,000 65,000 Accountspayable 194,000 124,000 Accruedliabilities 41,000 73,000
Therewerenopurchasesordisposalsofequipmentduringtheyear.Thelong-terminvestmenthadacarrying(book)valueof$77,000andwassoldforcashonJune15.Onthebasisoftheprecedinginformation,determinethecashprovidedbyoperatingactivitiesfromNovember1,20X1throughOctober31,20X2.Thefirmusestheindirectmethodofstatementpreparation.
| Oct.31,20X2 | Oct.31,20X1 | |
| Tradeaccountsreceivable | $249,000 | $203,000 |
| Merchandiseinventory | 232,000 | 308,000 |
| Accumulateddepreciation:equipment | 124,000 | 65,000 |
| Accountspayable | 194,000 | 124,000 |
| Accruedliabilities | 41,000 | 73,000 |
|
| YOUR ANSWERS |
| Net Income |
|
| Trade accounts receivable |
|
| Merchandise inventory |
|
| Accumulated depreciation: equipment |
|
| Accounts payable |
|
| Accrued liabilities |
|
| Gain on sale of investments |
|
| Cash Flow from Operating Activities |
|
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