U V W X Name: Chapter 11 - Part 1 (Practice) 1 M NE Principles of Financial Accounting (ACC 221) Winter 2020 1. Based on the following information for XYZ, Inc., prepare the operating section of the statement of cash flows for 2021: $ 28,500,000 995,500 29,495,500 Current assets Accounts receivable Inventory Prepaid rent Increase of: Decrease of Increase of 1,450,000 2,275,000 1,200,000 9 Revenues Gain/ (loss) on sales of assets Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Total expenses Net Income 19,500,000 7,500,000 1,750,000 28,750,000 745,500 Current liabilities Accounts payable Interest payable Increase of Increase of Decrease of 985,000 150,500 272,500 $ Income tax payable XYZ, Inc. Statement of Cash Flows Begin with net income: 19 20 21 1. Add back depreciation: 2 Remove gains & losses: 3. Adjust for changes: Net cash from operations: $ . 2020 $ 20 2 Based on the following information for ABC, Inc., prepare the operating section of the statement of cash flows for 2021: 2021 31 Revenues 2,705,996 Current assets Loss on sale of equipment (13,250) Accounts receivable 87,600 Total revenues 2,692,745 Inventory 151,000 Expenses: Prepaid rent 24,507 Cost of goods sold 1,575,000 Operating expenses 854,000 Current liabilities Depreciation expense 31,075 Accounts payable 54,065 Total expenses 2,460, 075 Accrued liabilities 20,995 39 Net Income Income tax payable 18,101 85,100 162,500 15,000 58,000 18,075 21,000 232,670 $ ABC, Inc. Statement of Cash Flows Begin with net income: 44 45 1. Add back depreciation: 2 Remove gains & losses: 3. Adjust for changes: ES Soom Net cash from operations: S