Question : 170. Use the following income statement and information about selected current : 1257717

 

170. Use the following income statement and information about selected current assets and current liabilities for Kimberline Industries to calculate the net cash provided or used by operating activities using the indirect method.   

KIMBERLINE INDUSTRIES

Income Statement

For Year Ended December 31, 2015

Sales……………………….

 

$280,000

Cost of goods sold……………….

 

124,000

Gross profit from sales…………….

 

$156,000

Operating expenses:

 

 

    Salaries and wages expense………..

$35,000

 

    Depreciation expense……………

11,000

 

    Rent expense………………..

27,200

 

    Interest expense………………

   3,900

  77,100

Income from operations……………

 

$78,900

Loss on sale of land………………

 

    4,700

Net income…………………..

 

$74,200

 

 

 

 

Increases and decreases of current asset and current liability accounts, all of which relate to operating activities, are as follows: 

 

Change

Accounts receivable increase………..

$3,600

Merchandise inventory decrease………

1,700

Accounts payable increase………….

1,100

Salaries and wages payable decrease……

2,600

   

 

171. Based on the following income statement and balance sheet for Bankowski Corporation, determine the cash flows from operating activities using the indirect method.   

Bankowski Corporation

Income Statement

For Year Ended December 31, 2015

Sales……………………….

 

$504,000

 

Cost of goods sold……………….

  $327,600

 

 

Depreciation expense…………….

33,000

 

 

Other operating expenses…………..

125,500

(486,100

)

Other gains (losses):

 

 

 

   Gain on sale of equipment…………

 

5,200

 

Income before taxes……………..

 

$  23,100

 

Income tax expense………………

 

    (4,800

)

Net income…………………..

 

$  18,300

 

 

 

 

 

   

Bankowski Corporation

Balance Sheets

At December 31

Assets

2015

 

2014

 

   Cash………………………

$  62,650

 

    $   55,800

 

   Accounts receivable…………….

       21,000

 

       29,000

 

   Inventory…………………..

       58,000

 

       52,100

 

   Equipment………………….

     240,000

 

     222,000

 

   Accumulated depreciation…………

  (97,000

)

(   96,000

)

    Total assets………………….

$284,650

 

$262,900

 

 

 

 

 

 

Liabilities:

 

 

 

 

   Accounts payable………………

    $  28,400

 

    $  23,700

 

   Income taxes payable……………

      1,050

 

      1,200

 

   Total liabilities………………..

$  29,450

 

$  24,900

 

Equity:

 

 

 

 

   Common stock………………..

    $106,000

 

     $106,000

 

Paid-in Capital in excess of par value…….

       18,000

 

       18,000

 

   Retained earnings………………

131,200

 

  114,000

 

   Total equity………………….

$255,200

 

$238,000

 

Total liabilities and equity…………..

$284,650

 

$262,900

 

 

 

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