x
Info
x
Warning
x
Danger
 / 
 / 
 / 
96. The chief accountant for Julius Co. provides you with the

Question : 96. The chief accountant for Julius Co. provides you with the : 1412619

 

 

96.

The chief accountant for Julius Co. provides you with the company's most recent income statement and comparative balance sheets below. The accountant has asked for your help in preparing part of the company's 2016 statement of cash flows.

 

2016 Income Statement ($ in thousands)

 

Sales revenue

$5,000

Depreciation expense

280

 

 

3,720

 

Selling & administrative expenses

4,000

 

Income before taxes

 

1,000

Income tax expense

 

300

Net income

 

$700

 

 

 

Balance Sheet (all $ in thousands)

12/31/16

12/31/15

Cash

$800

$750

Accounts receivable

450

365

Property, plant & equipment

1,900

1,450

Less: Accumulated depreciation

(800)

(520)

 

$2,350

$2,045

 

 

 

Payables for selling & administration expenses

300

325

Income taxes payable

180

130

Common stock

700

700

Retained warnings

1,170

890

 

$2,350

$2,045



Required:

In the space provided below, determine the cash flow from operating activities for Julius Co., using the direct method.


 
 

 

Cash flows from operating activities:

 

 

 

 

 

97.

The accounting records of Rockness Company provided the data below ($ in 000s).
 

Net income

$25,200

Depreciation and amortization expense

3,300

Decrease in accounts receivable

2,000

Increase in inventory

4,500

Increase in prepaid insurance

300

Increase in salaries payable

900

Decrease in interest payable

400

 

Required:

Prepare a reconciliation of net income to net cash flows from operating activities.


 
 

 

 

 

 

 

 

Solution
5 (1 Ratings )

Solved
Accounting 1 Year Ago 40 Views
This Question has Been Answered!
Unlimited Access Free
Explore More than 2 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
Signup for Instant Access!
Ask an Expert
Our Experts can answer your tough homework and study questions
150417 Accounting Questions Answered!
Post a Question