Ask Question
BusinessBusiness
26 May, 22:18

Determining Net Income from Net Cash Flow from Operating Activities

Curwen Inc. reported net cash flow from operating activities of $357,500 on its statement of cash flows for the year ended December 31, 2014. The following information was reported in the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method:

Decrease in income taxes payable $7,700

Decrease in inventories 19,140

Depreciation 29,480

Gain on sale of investments 13,200

Increase in accounts payable 5,280

Increase in prepaid expenses 2,970

Increase in accounts receivable 14,300

Determine the net income reported by Curwen Inc. for the year ended December 31, 2014.

+4
Answers (1)
  1. 27 May, 01:55
    0
    Net income = $341,770

    Explanation:

    We know,

    Cash flow provided by operating activities = Net income + Changes in working capital + Non cash items.

    Cash flow provided by operating activities = Net income + (-Decrease in income taxes payable + Decrease in inventories + Increase in accounts payable - Increase in prepaid expenses - Increase in accounts receivable) + Depreciation - Gain on sale of investments

    $357,500 = Net income + ( - $7,700 + $19,140 + $5,280 - $2,970 - $14,300) + $29,480 - $13,200

    $357,500 = Net income - $7,700 + $19,140 + $5,280 - $2,970 - $14,300 + $29,480 - $13,200

    $357,500 = Net income + $15,730

    $357,500 - $15,730 = Net income

    Net income = $341,770
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
When market participants have rational expectations a. they only slowly adjust their expectations to news which could affect prices or returns. b. they are less likely to make accurate forecasts than if they have adaptive expectations. c.
Answers (2)
June 23. Received a $48,000, 90-day, 8% note dated June 23 from Radon Express Co. on account. Sept. 21. The note is dishonored by Radon Express Co. Oct. 21.
Answers (1)
When determining whether to record an asset as a fixed asset, what two criteria must be met? Must be an investment and must be long lived. Must be long lived and must use the asset in a productive manner.
Answers (1)
An increase of $100,000 in inventory would result in a (n) Increase in bonds payable. Decrease of net cash flow. Decrease in marketable securities. Increase in net cash flow.
Answers (1)
The 3rd step in the personal financial planning process is:
Answers (1)
New Questions in Business
A gift that might otherwise be viewed as a future interest in a trust can be treated as a present interest gift if:
Answers (1)
Curtain Co. paid dividends of $10,000; $12,500; and $14,000 during Year 1, Year 2, and Year 3, respectively. The company had 2,100 shares of 5.5%, $100 par value preferred stock outstanding that paid a cumulative dividend.
Answers (1)
Describe how legal contracts provide incentives for people to exchange goods and services
Answers (1)
List four wan technologies that are carried over the pstn.
Answers (1)
Which of the events is likely to occur when the business cycle is in a period of recession (contraction) ? an increase in the standard of living an increase in unemployment an increase in GDP (gross domestic product) an increase in economic growth
Answers (1)
Home » Business » Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $357,500 on its statement of cash flows for the year ended December 31, 2014.
Sign Up Forgot Password?