Question: Based on the information given in Exercise
Based on the information given in Exercise 5-31 and using the direct method, compute the net amount of cash provided by (used in) operating activities for the year.
In Exercise 5-31
The following information was taken from the comparative financial statements of Tulip Corporation:
Net income for year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 75,000
Sales revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000
Cost of goods sold (except depreciation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275,000
depreciation expense for year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000
Amortization of intangible assets for year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Interest expense on short-term debt for year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,200
Dividends declared and paid during year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000
Selected account balances:
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> What special accounting problems are introduced when a company purchases equipment on a deferred payment contract rather than with cash?
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> The company reported the following information for the year: Ending work-in-process inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 Depreciation on factory building . . . . . . . . . . . . . . .
> The following information is available for Kelsey Inc. (All inventory is purchased on account, and Accounts Payable relates only to the purchase of inventory.) Compute the following for 2013: 1. The ending balance in accounts receivable 2. The amount o
> From the following list of accounts, prepare a multiple-step income statement in good form showing all appropriate items properly classified, including disclosure of earnings-per-share data. (No monetary amounts are to be reported.) Accounts Payable Accu
> Following is information for Goulding Manufacturing Company: (a) Long-term debt of $500,000 was retired at face value. (b) New machinery was purchased for $62,000. (c) Common stock with a par value of $100,000 was issued for $160,000. (d) Dividends of $2
> Under what classification would you report each of the following items on the financial statements? (a) Revenue from sale of obsolete inventory. (b) Loss on sale of the fertilizer production division of a lawn supplies manufacturer. (c) Loss stemming fro
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> In 2013, Compliance Industries changed its method of inventory valuation. The summary effect of those changes is as follows: Net income was $128,000, $119,000, and $98,000 for 2013, 2012, and 2011, respectively. The income tax rate is 30%. 1. Compute t
> Jason Bond Company operates two restaurants, one in Valencia and one in Saugus. The operations and cash flows of each of the two restaurants are clearly distinguishable. During 2013, Jason Bond decided to close the restaurant in Saugus and sell the prope
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> On May 31, 2013, top management of Stafford Manufacturing Co. decided to dispose of an unprofitable business component. An operating loss of $210,000 associated with the component was incurred during the year. The plant facilities associated with the bus
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> Nephi Corporation reported the following income items before tax for the year 2013: Income from continuing operations before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . $260,000 Loss from operations of a discontinued business componen
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> Why is an adjustment made on the balance sheet date to reflect exchange rate changes?
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> The income statement provides detail as to transactions that occurred during the period relating to what balance sheet account? The statement of cash flows provides detail as to the transactions that occurred during the period relating to what balance sh
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> What differences result from applying lower of cost or market to individual inventory items instead of to the inventory as a whole?
> On average, which number is larger, net income or cash from operations? Explain.
> How is interest paid classified in a statement of cash flows under the provisions of FASB ASC Topic 230?
> What is the current status of LIFO under IASB standards?
> What kinds of companies would be least likely to use LIFO? Explain.
> Is the purchase of securities an operating activity or an investing activity? Explain.
> Why are LIFO and average cost more complicated with a perpetual inventory system than with a periodic system?
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> Explain what special accounting procedures are required when receivables are assigned as collateral for a secured loan.
> Output measures of percentage of completion are sometimes preferred to input measures. What are some examples of commonly used output measures?
> The following balance sheet and income statement information includes actual data for 2013 and forecasted data for 2014: Prepare a forecasted statement of cash flows for 2014. Use the indirect method of reporting cash flow from operating activities.
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> Why would a company prefer gross revenue reporting over net revenue reporting?
> Refer to Practice 8-7 and Practice 8-10. Assume that the company uses the completed contract method. Make the journal entries necessary in Year 3 to recognize revenue and costs for the completed project. In Practice 8-7 The company signed an $880,000 co
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> What is the significance of customer acceptance provisions?
> What is the normal pattern of cash flow (positive or negative) for operating, investing, and financing activities?
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> Why did the SEC issue Staff Accounting Bulletin (SAB) 101?
