Question
Use the following Financial statements to answer: Great Lakes Manufacturing Inc. comparative Statement of Financial Position at December 31in (000)'s 20X5 20X4 Cash $ 5,100
Use the following Financial statements to answer: Great Lakes Manufacturing Inc. comparative Statement of Financial Position at December 31in (000)'s
20X5 | 20X4 | |
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 | $ 53,820 |
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
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 total adjustment to reconcile profit to net cash under the indirect cash flow method?
None of the other alternatives are correct
1. $ (260)
2. $ (2,920)
3. $ (1,750)
4. $ (4,660)
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