Sep 19, 2017

THE INCOME STATEMENT AND A SCHEDULE RECONCILING CASH FLOWS FROM OPERATING ACTIVITIES TO NET INCOME.

This paper concentrates on the primary theme of THE INCOME STATEMENT AND A SCHEDULE RECONCILING CASH FLOWS FROM OPERATING ACTIVITIES TO NET INCOME. in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.

The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in millions) for Mike Roe Computers. MIKE ROE COMPUTERS Income Statement For the Year Ended December 31, 2013 Sales $ 149.80 Cost of goods sold (89.90) Gross margin 59.90 Salaries expense $ 19.80 Insurance expense 11.80 Depreciation expense 4.90 Interest expense 5.90 (42.40) Gains and losses: Gain on sale of equipment 11.80 Loss on sale of land (2.80) Income before tax 26.50 Income tax expense (13.25) Net income $ 13.25 Reconciliation of Net Income to Net Cash Flows from Operating Activities Net income $ 13.25 Adjustments for noncash effects: Decrease in accounts receivable 4.90 Gain on sale of equipment (11.80) Increase in inventory (5.90) Increase in accounts payable 8.90 Increase in salaries payable 2.90 Depreciation expense 4.90 Decrease in bond discount 2.95 Decrease in prepaid insurance 1.90 Loss on sale of land 2.80 Increase in income tax payable 5.90 Net cash flows from operating activities $ 30.70 Required: 1. Calculate each of the following amounts for Mike Roe Computers: (Enter your answers in millions of dollars rounded to 2 decimal places. Input all amounts as positive values.) ($ in millions) a. Cash received from customers during the reporting period. $ b. Cash paid to suppliers of goods during the reporting period. $ c. Cash paid to employees during the reporting period. $ d. Cash paid for interest during the reporting period. $ e. Cash paid for insurance during the reporting period. $ f. Cash paid for income taxes during the reporting period. $ 2. Prepare the cash flows from operating activities section of the statement of cash flows (direct method). (Enter your answers in millions of dollars rounded to 2 decimal places.Amounts to be deducted should be indicated with a minus sign.) ($ in millions) Cash Flows From Operating Activities: (Click to select)Cash paid to suppliersCash paid for income taxesTo bondholdersCash paid to employeesCash paid for insuranceCash received from customersFor depreciation expenseCash paid for interest $ (Click to select)Cash received from customersCash paid for interestCash paid for insuranceFor depreciation expenseCash paid for income taxesCash paid to employeesTo bondholdersCash paid to suppliers (Click to select)Cash paid to employeesTo bondholdersCash received from customersCash paid for insuranceCash paid for income taxesFor depreciation expenseCash paid for interestCash paid to suppliers (Click to select)To bondholdersCash received from customersCash paid for interestCash paid for income taxesCash paid to employeesCash paid to suppliersCash paid for insuranceFor depreciation expense (Click to select)For depreciation expenseCash paid to suppliersCash paid for income taxesCash paid to employeesCash paid for interestCash paid for insuranceCash received from customersTo bondholders (Click to select)Cash paid for interestCash paid for insuranceCash paid to suppliersFor depreciation expenseCash paid for income taxesCash received from customersTo bondholdersCash paid to employees Net cash flows from operating activities $


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