Chat with us, powered by LiveChat

The cash flow from operating activities is

The following information is given for Tripp Company, which uses the indirect method. 

Net income$20,000

Depreciation expense$3,000

Increase in accounts receivable $2,000

Payment of dividends$2,000

Proceeds from sale of equipment $6,000

Increase in accounts payable $4,000

Decrease in inventory $3,000

From the information provided, answer the following questions: 

1. The cash flow from operating activities is ________. 
2. The cash flow from investing activities is ________. 
3. The cash flow from financing activities is ________. 


Selected data for Stick’s Design are given as of December 31, Year 1 and Year 2 (rounded to the nearest hundredth). 

Year 2Year 1

Net Credit Sales $25,000$30,000

Cost of Goods Sold 16,00018,000

Net Income2,0002,800


Accounts Receivable 3,0002,000


Current Liabilities 6,0005,000

Compute the following: 

1. Current ratio for Year 2 
2. Acid-test ratio for Year 2 
3. Accounts receivable turnover for Year 2 
4. Average collection period for Year 2 
5. Inventory turnover for Year 2 


Prepare an income statement showing departmental contribution margin based on the following: 

Dept. X Dept. YRent Expense

Space (square feet)17,50035,000

Net Sales60,00040,000

Cost of Goods Sold18,00016,000

Rent Expense (allocated based on square feet)  2,700


From the following transactions, prepare the appropriate general journal entries for the month of April.

1. Raw materials costing $60,000 were issued from the storeroom.
2. Direct labor of $53,000 was charged to production.
3. Indirect labor costs of $17,000 were incurred.
4. Overhead was applied at the rate of 40% of direct labor dollars.
5. Completed products costing $42,000were transferred to finished goods.
6. Products costing $32,000 were sold.
joycePosted inUncategorized