Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 68

An analysis of the annual financial statements of O'Connell Corporation reveals the following:
a.he company had a $5 million extraordinary loss from insurance proceeds received due to a tornado that destroyed a factory building.
b.epreciation for the year amounted to $9 million.
c.uring the year, $2 million in cash was transferred from the company's checking account into a money market fund.
d.ccounts receivable from customers increased by $3.5 million over the year.
e.ash received from customers during the year amounted to $169 million.
f.repaid expenses decreased by $1 million over the year.
g.ividends declared during the year amounted to $8 million; dividends paid during the year amounted to $6 million.
h.ccounts payable (to suppliers of merchandise) increased by $2.7 million during the year.
i.he liability for accrued income taxes payable amounted to $5 million at the beginning of the year and $3 million at year-end.
In the computation of net cash flows from operating activities by the indirect method, explain whether each of the above items should be added to net income, deducted from net income, or omitted from the computation.riefly explain your reasons for each answer.