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
Flura [38]
3 years ago
11

The current sections of Birmingham Inc.’s balance sheets at December 31, 2019 and 2020, are presented here. Birmingham’s net

income for 2020 was $193,000. The income statement included depreciation expense, $25,000, amortization expense, $10,000, and a gain on disposal of equipment, $7,000. The equipment was sold for $47,000. Birmingham also issued bonds for $60,000. 2020 2019Current assets Cash $417,000 $ 99,000 Accounts receivable 120,000 93,000Inventory 159,000 176,000Prepaid expenses 29,000 24,000Total current assets $725,000 $392,000 Current liabilities Accrued expenses payable $ 17,000 $ 6,000 Accounts payable 88,000 94,000Total current liabilities $105,000 $100,000 InstructionsPrepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2020 using the indirect method.
Business
1 answer:
jekas [21]3 years ago
6 0

Answer:

Net Income 193,000

Non-monetary terms:

Depreciation expense    25,000

amortization expense       10,000

gain on disposal          <u>     (7,000)   </u>

Adjusted Income            221,000

Change in Working Capital:

Increase in A/R        (27,000)

Decreasein Inv          17,000

Increase in Prepaid   (5,000)

Increase Accrued /P   11,000

Decreasein A/P         (6,000)

Change In Working Capital     (10,000)

From Operating Activities    211,000

Investing

Sale of Equipment  47,000

Financing

Bonds Issued   60,000

Cash Flow              318,000

Beginning Cash   99,000

Cash Flow           318,000

Ending Cash        417,000

Explanation:

We first remove the non.monetary concetps from the net income.

Then we adjust for the change in working capital which are the incrase and decrease in the current assets and liabilities account

Increase in asset and decrease in liabilities represent cash outflow

while the opposite is true when an asset decrease(convert to cash) or a liablity increase (delay of the payment)

You might be interested in
Francis works for a local fly-fishing shop. The shop allows employees to purchase two fly rods per year at a discount. This year
RUDIKE [14]

The amount of discount that has to be included in Francis's income is 0.

<h3>How to solve for the discount amount</h3>

The amount of the discount - sales price

= 300 - 250

= $50

This is the discount when it is sold to employees

Next we solve for the gross profit as

sales price x gross profit rate

= 300 x 30%

= 90

Given the amounts that we have here we have to conclude that the amount to be included in the account is 0

Read more on what a discount is here:

brainly.com/question/9841818

#SPJ1

6 0
2 years ago
The purpose of cascading the balanced scorecard throughout the organization is: _____________
frez [133]

Answer:

b. To ensure strict hierarchical control of the organization.

6 0
2 years ago
Monica wants to pursue a degree in psychology and has enrolled in the bachelor of arts program at ashford. her ultimate goal is
solong [7]
Gigabytes?? I am old skool...but I think that may b your answer...Google it tho...
8 0
3 years ago
Which of the following would be considered an abiotic factor in an ecosystem? ant, moss,stone, tree
tankabanditka [31]
Stone or tree 
should be right
7 0
3 years ago
Read 2 more answers
If information processing was perfect, many studies conclude that individuals would tend to make __________ decisions using that
blondinia [14]

Answer: a. less than fully rational; behavioral biases

Explanation:  Information processing errors consist of forecasting errors , overconfidence  and conservatism which can lead investors to misestimate the true probabilities of possible events or associated rates of return; and assuming information processing was perfect, individuals would tend to less-than-fully rational decisions due to behavioral biases as confirmed by several studies.

4 0
3 years ago
Other questions:
  • The Blue Nile Law Firm prepays for advertising in the local newspaper. On January​ 1, the law firm paid $ 15 comma 000 for twelv
    5·1 answer
  • The following transactions occurred during July: received $900 cash for services provided to a customer during July. Issued comm
    8·1 answer
  • The management of Vimonland Theme Park sells that proprietary rights of all the park rides toan investment company to operate on
    12·1 answer
  • E-Flix rents DVDs that are mailed out to customers upon demand. E-Flix has identified three activities involved in getting the v
    14·1 answer
  • Which of the following is not a problem associated with monetary​ policy? A. Monetary policy may be ineffective if investment an
    14·1 answer
  • Health Defense sells first aid kits and uses the periodic inventory system to account for its merchandise. The beginning balance
    11·1 answer
  • On Feb 10, Amara Inc. sold goods to a customer for $8,000 with credit terms 2/10, n/30. The company uses the net method of accou
    14·1 answer
  • Geraldo is a customer care executive at a telecommunications service provider. He receives a complaint from a customer about an
    15·1 answer
  • If the stock of money is $250 billion, velocity is 5, and the price level is 10, what is real output
    5·1 answer
  • As of late, US antitrust regulators begin their examination of a merger by using statistical tools and real-world evidence to __
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!