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.

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

Solution 5 (1 Ratings )

Solution

5 (1 Ratings )