Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 4, Problem 4.20E
Statement of cash flows; indirect method
• LO4–8
TIGER ENTERPRISES
Income Statement
For the Year Ended December 31, 2018
| ($ in thousands) | ||
| Sales revenue | $7,000 | |
| Operating expenses: | ||
| Cost of goods sold | $3,360 | |
| 240 | ||
| Insurance | 100 | |
| Administrative and other | 1,800 | |
| Total operating expenses | 5,500 | |
| Income before income taxes | 1,500 | |
| Income tax expense | 600 | |
| Net income | $ 900 | |
| Balance Sheet Information ($ in thousands) | Dec. 31, 2018 | Dec. 31, 2017 |
| Assets: | ||
| Cash | $ 300 | $ 200 |
| Accounts receivable | 750 | 830 |
| Inventory | 640 | 600 |
| Prepaid insurance | 50 | 20 |
| Plant and equipment | 2,100 | 1,800 |
| Less: |
(840) | (600) |
| Total assets | $3,000 | $2,850 |
| Liabilities and Shareholders’ Equity: | ||
| Accounts payable | $ 300 | $ 360 |
| Payables for administrative and other expenses | 300 | 400 |
| Income taxes payable | 200 | 150 |
| Note payable (due 12/31/2019) | 800 | 600 |
| Common stock | 900 | 800 |
| Retained earnings | 500 | 540 |
| Total liabilities and shareholders’ equity | $3,000 | $2,850 |
Required:
Prepare Tiger’s statement of cash flows, using the indirect method to present cash flows from operating activities. (Hint: You will have to calculate dividend payments).
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Exercise 16-20B (Algo) Direct: Cash flows from operating activities LO P5
The following income statement and additional year-end information is provided.
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$ 32,350 increase Accounts payable
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Problem 11-4A Prepare a statement of cash flows—indirect method (LO11-2, 11-3, 11-4, 11-5)
The income statement, balance sheets, and additional information for Video Phones, Inc., are provided.
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$
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Income tax expense
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2020
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Current assets:
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Exercise 21-24 (Static) Cash flows from operating activities (indirect method) [LO21-4]
Portions of the financial statements for Myriad Products are provided below:
MYRIAD PRODUCTS COMPANY
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For the Year Ended December 31, 2024
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Cost of goods sold
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Gross margin
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Salaries expense
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Depreciation expense
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Interest expense
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Loss on sale of land
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Income before taxes
182
Income tax expense
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Net Income
$ 91
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Selected Accounts from Comparative Balance Sheets
December 31, 2024 and 2023
($ in millions)
Year
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2023
Cash
$ 102
$ 100
$ 2
Accounts receivable
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232
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Inventory
440
450
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Accounts payable
140
134
6
Salaries payable
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Interest payable
25
20
5
Income tax payable
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10
5
Required:
Prepare the cash flows from the operating activities section of the statement of cash flows…
Chapter 4 Solutions
Intermediate Accounting
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