Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following Financial statements to answer: Great Lakes Manufacturing Inc. comparative Statement of Financial Position at December 31in (000)'s 20X5 120X4 Cash $ 5,100

image text in transcribedimage text in transcribed

Use the following Financial statements to answer: Great Lakes Manufacturing Inc. comparative Statement of Financial Position at December 31in (000)'s 20X5 120X4 Cash $ 5,100 $4,800 Accounts Receivable $ 9,010 $ 6,100 Inventory $ 10,400 $ 14,000 Prepaid Expenses $ 1,950 $ 1,020 Equipment $ 58,500 $ 59,900 Accumulated Depreciation - equipment ($33,100) ($32,000) Total Assets $ 51,860 $ Account Payable $ 7,000 $ 11,400 Interest Payable $ 350 $ 110 Income taxes payable $ 650 $ 500 Dividends Payable $ 2,400 $3,200 Long-term Notes Payable $ 17,500 $ 17,000 Common shares $ 22,000 $ 20,000 Retained Earnings $ 1,960 $ 1,610 Total Liabilities & Shareholders' Equity $ 51,860 $ 53,820 Great Lakes Manufacturing Inc. Income Statement Year Ended December 31, 20X5 in (000)'s Year Ended December 31, 20X5 in (000)'s Sale $130,000 Cost of goods sold $ 97,000 Gross Profit $ 33,000 Operating Expenses $30,000 Gain on Sale of equipment (1,000) $ 29,000 Profit from Operations $ 4,000 Other expenses Interest Expense $ 200 Profit before Income Tax $ 3,800 Income Tax Expense $ 1,550 Profit $ 2,250 Additional Information: - Operating expenses include depreciation expense of $3,500,000 - Accounts Payable related to the purchase of inventory - Equipment that cost $3,900,000 was sold at a gain of $1,000,000 - New equipment was purchased during the year for $2,500,000 Dividends declared and paid in 20x5 totaled $1,900,000 - Common shares were sold for $2,000,000 cash - Interest payable in 20x5 was $240,000 greater than interest payable in 20X4 What is the Net Cash provided by Operations when the indirect cash flow method is used

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_2

Step: 3

blur-text-image_3

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

Organizational Network Analysis Auditing Intangible Resources

Authors: Anna Ujwary-Gil

1st Edition

1032085215, 978-1032085210

More Books

Students also viewed these Accounting questions