1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
marta [7]
3 years ago
6

The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Macros

oft Corporation.
MACROSOFT CORPORATION Income Statement For the Year Ended December 31, 2016 ($ in millions)

Revenues and gains:
Sales $330/00
Gain on sale of cash equivalents 3.00
Gain on sale of investments 25.00 $358.00
Expenses and loss:
Cost of goods sold $130.00
Salaries 41.00
Interest expense 13.00
Insurance 21.00
Depreciation 11.00
Patent amortization 5.00
Loss on sale of land 7.00 228.00
Income before tax 130.00
Income tax expense 65.00
Net income $65.00
Reconciliation of Net Income to Net Cash Flows from Operating Activities ($ in millions)

Net income $65
Adjustments for noncash effects:
Depreciation expense 11.00
Patent amortization expense 5.00
Loss on sale of land 7.00
Gain on sale of investment (25.00)
Decrease in accounts receivable 7.00
Increase in inventory (13.00)
Increase in accounts payable 19.00
Decrease in bond discount 2.00
Increase in salaries payable 7.00
Decrease in prepared insurance 5.00
Increase in income tax payable 11.00
Net cash flows from operating activities $101.00
Required: Prepare the cash flows from operating activities section of the statement of cash flows (direct method). (Enter your answers in millions rounded to 2 decimal places (i.e., 5, 500,000 should be entered as 5.50). Amounts to be deducted should be indicated with a minus sign.)
Business
1 answer:
wariber [46]3 years ago
3 0

Explanation:

The preparation of the cash flows from operating activities section is shown below:-

Working note:-

Sales                                                            $330

Add Decrease in Accounts Receivables   $7

Cash collected from customers                 $337                              

Cost of goods sold                                      $130

Add Increase in inventory                           $13

Less Increase in accounts payable            $19

Paid cash to suppliers                                 $124

Salary expenses                                           $41

Less Increase in payable salaries                $7

Paid cash to employees                               $34

Insurance expenses                                      $21

Less Decrease in prepaid insurance            $5

Paid cash for insurance                                $16

Income tax expenses                                     $65

Less Increase in income tax payable            $11

Paid cash for income tax                               $54

Interest expenses                                           $13

Less Decrease in bond expenses                  $2

Paid cash for interest expense                       $11

Statement of Cash Flow

Cash collected from customers                    $337

Gain on sale of cash equivalents                  $3

less: Paid cash to suppliers                           $124

less: Paid cash to employees                        $34

less: Paid cash to insurance                           $16

less: Paid cash for interest                              $11

less: Paid cash for income tax                        $54

Net cash provided by operating activities     $101

You might be interested in
Which three approaches to management are considered historical perspectives?
cestrela7 [59]
The three approaches to management which are considered to be historical perspectives are:
1. The classical view point: this emphasize finding ways to manage work more efficiently.
2. The behavioral view point: emphasize the need to understand human behavior and to encourage employees toward achieving the company's goals.
3. The quantitative view point: this emphasizes the application of quantitative measures to management.<span />
7 0
3 years ago
If a worksite includes more than one set of management and workers, who should have access to the information, training, and con
VashaNatasha [74]

Answer:

Every worker and manager per set of management within the worksite

Explanation:

In such a situation, all workers and managers should have access to the information, training, and controls needed to avoid workplace accidents. Since the possibility of one occurring is a common risk to all, being appropriately trained on right precautions and procedures is important to both managers and employees. They will know how to administer first aid and even perform CPR at workplace.

7 0
3 years ago
Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order sh
Alja [10]

Answer:

The correct answer is A. micro-marketing.

Explanation:

In micro marketing strategy marketers give their advertising ans selling efforts on a small group of tightly targeted consumers.

For example, the market can be grouped into small groups based on a commitment to a product class or readiness to purchase a given brand.This grouping can be based on following aspect of customers

1). Locayion

2). Relationships

3). Job Title

4). Industry

5). Size

5). Customer Needs

6). Brand Loyalty

7). Customer Recovery

8). Price Sensitivity

Nike allows customers to order shoes with custom color combinations is a type of need based micro-marketing.

4 0
3 years ago
Handwriting and correct spelling on a work order aren't all that important because they have nothing to do with how well you fix
MArishka [77]

the answer here is false


5 0
3 years ago
A corporation issues for cash $1,000,000 of 10%, 20-year bonds, interest payable annually, at a time when the market rate of int
Jet001 [13]

Answer: The following statements is true: <u><em>The amount of unamortized discount decreases from its balance at issuance date to a zero balance at maturity.</em></u>

Unamortized discount amount is decreased from balance at provision to a nil balance at due date. This is so , as it will be liquidated over entire bond’s life and thus will reach $ 0 maturity.

<u><em>Therefore, the correct option is (c).</em></u>

6 0
3 years ago
Other questions:
  • The market for land is competitive and in equilibrium at the rental rate of $500 per acre and the supply of land is perfectly in
    5·1 answer
  • What is the consistent finding regarding age identity of 60- to 75-year-olds?
    11·1 answer
  • Using policy to stabilize the economy The government has the ability to influence the level of output in the short run using mon
    13·1 answer
  • On January 1, 20X1, Tucker Company leases equipment from Franz Inc. over three years of the equipment's five-year estimated usef
    7·1 answer
  • Seminoles Corporation’s fiscal year-end is December 31, 2021. The following is a partial adjusted trial balance as of December 3
    9·1 answer
  • After cooking food that must sit for a little while before being consumed, Sherry is aware that the food must remain at a certai
    5·1 answer
  • Suppose there is a duopoly of gas companies, Energy X and Energy Y. The following is the market demand for gas. There are no mar
    13·1 answer
  • Journalize the following selected transactions for January. Journal entry explanations may be omitted.
    6·1 answer
  • Which of the following is NOT considered a trend in marketing?
    9·1 answer
  • Batman parked the Batmobile himself and kept the bat keys. There was no attendant at the lot. Two hours later, Batman left the r
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!