Reconciling Net Income and Cash Flow from Operations Using FSET For the year, Beyer GmbH...
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Reconciling Net Income and Cash Flow from Operations Using FSET
For the year, Beyer GmbH had the following summary information available concerning its operating activities. The company had no investing or financing activities this year.
1. Sales of merchandise to customers on credit
253,700
2. Sales of merchandise to customers for cash
45,750
3. Cost of merchandise sold on credit
160,050
4. Cost of merchandise sold for cash
31,700
5. Purchases of merchandise from suppliers on credit
175,800
6. Purchases of merchandise from suppliers for cash
23,850
7. Collections from customers on accounts receivable
241,700
8. Cash payments to suppliers on accounts payable
170,100
9. Operating expenses (all paid in cash)
86,150
Required
a. Enter the items above into the Financial Statement Effects Template.
Note: Use negative signs with answers, when appropriate.
What was the cash flow from operating activities? (Use the direct method.)
Indicate the direction and amounts by which each of the following accounts changed during the year. If the account decreased, enter as a negative number.
1. Accounts receivable
Answer
2. Merchandise inventory
Answer
3. Accounts payable
Answer
d. Using your results above, prepare the operating activities section of the statement of cash flows using the indirect format.
Note: Use negative signs with answers, when appropriate.
Net income
Answer
Change in accounts receivable
Answer
Change in inventories
Answer
Change in accounts payable
Answer
Cash flow from operating activities
Answer
Answer & Explanation
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