Question

For each separate company, compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) Twix Dots Skor Net income $4,000 $100,000 $72,000 Depreciation expense 30,000 8,000 24,000 Accounts receivable increase (decrease) 40,000 20,000 (4,000 ) Inventory increase (decrease) (20,000 ) (10,000 ) 10,000 Accounts payable increase (decrease) 24,000 (22,000 ) 14,000 Accrued liabilities increase (decrease) (44,000 ) 12,000 (8,000 )

Answer 1

Answer:

Net cash flow from operating activities for Twix $34,000,  Dots=$108,800,  Skot = $108,000

Explanation:

                                                                   Twix$        Dots$        Skot$

Net income                                                4,000       100,000       72,000

Adjustments to reconcile net income

to net cash provided by operations

Depreciation expense                               30,000       8,000       24,000

Account receivable increase (decrease)  40,000      20000      -4,000

Inventory increase (decrease)                   -20,000    -10,000       10,000

Account payable increase (decrease)       24,000     -22,000      14.000

Accrued liabilities increase (decrease)      -44,000    12,000       -8,000

Net cash flow from operating activities  $34,000  $108,800  $108,000