BE 162
Dutton Company prepared the tabulation below at December 31, 2011.
Net Income.........................................................$255,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense, $25,000
Decrease in accounts receivable, $50,000
Increase in inventory, $12,000
Decrease in accounts payable, $8,600
Increase in income taxes payable, $1,500
Loss on sale of land, $5,000
Net cash provided by operating activities
BE 162
(Cont.)
Instructions
Show how each item should be reported in the statement of cash flows. Use parentheses for deductions.
BE 163
Daimler Enterprises reported cash flow from operations of $312,000. The company made capital expenditures of $112,000 and paid dividends of $34,000.
Instructions
Compute free cash flow.
aBE 164
Schick Company reported cost of goods sold of $172,000 on its 2011 income statement. The company’s beginning inventory was $35,000. The ending inventory was valued at $40,000. The Accounts Payable balance at January 1 was $25,000. The December 31 balance in Accounts Payable was $22,000.
Instructions
Compute cash payments to suppliers.
aBE 165
Hiller Company had total operating expenses of $155,000 in 2011, which included depreciation expense of $25,000. Also during 2011, prepaid expenses decreased by $9,000 and accrued expenses increased by $7,500.
Instructions
Calculate the amount of cash payments for operating expenses in 2011 using the direct method.