Use the following F/S information to answer problems 15 and 16.In its 20X1 annual report to shareholders, Heitzman & Co. provided the following Statement of Cash Flows:Years ended December 31 ($ in millions)20X120X0Operating ActivitiesCash Inflows:Cash received from customers$3,102Progress paymentsOther collections$1.43811,1487,003Proceeds from litigation settlementInterest received2201717Income tax refunds received2315Other cash receiptsCash provided by operating activitiesCash Outflows:241014,5348,483Cash paid to suppliers and employeesInterest paidIncome taxes paidOther cash paymentsCash used in operating activitiesNet cash provided by operating activities13.2517,2503331651265717,47313,7178171,010Investing ActivitiesPayment for businesses purchased, net of cash acquiredAdditions to property, plant, and equipment(3,061)(393)(510)(274)Collection of note receivable148Proceeds from sale of property, plant, and equipmentProceeds from sale of businesses864418668Other investing activitiesNet cash used in investing activities(2)(3.204)(6)(78)Financing ActivitiesProceeds from issuance of long-term debtProceeds from equity security unitsBorrowings under lines of creditRepayment of borrowings under lines of creditPrincipal payments of long-term debt/lease agreementsProceeds from issuance of stock1,4916901,173(1,306)(119)(175)(485)82519Dividends paidOther financing activitiesNet cash provided by (used in) financing activities(158)(64)(114)2,532(755)Increase in cash and cash equivalentsCash and cash equivalents at beginning of yearCash and cash equivalents at end of year145177319142$464$31915) What method does Heitzman & Co. use to present its Statement of Cash Flows?a) Indirect method.b) Direct method.c) Modified accrual method.d) None of the above.16) Which of the three cash flow activities contributed most to Heitzman & Co. having a POSITIVEincrease in cash and cash equivalents over the 20X1 period?a) Operating activities.b) Investing activities.c) Financing activities.d) The F/S above does not allow for this type of analysis.

Answered: Image /qna-images/answer/bd6e6dd6-8e19-4794-8806-a1ec26979bb7.jpg

15) What method does Heitzman & Co. use to present its Statement of Cash Flows? a) Indirect method. b) Direct method. c) Modified accrual method. d) None of the above. 16) Which of the three cash flow activities contributed most to Heitzman & Co. having a POSITIVE increase in cash and cash equivalents over the 20X1 period? a) Operating activities. b) Investing activities. c) Financing activities

15) What method does Heitzman & Co. use to present its Statement of Cash Flows? a) Indirect method. b) Direct method. c) Modified accrual method. d) None of the above. 16) Which of the three cash flow activities contributed most to Heitzman & Co. having a POSITIVE increase in cash and cash equivalents over the 20X1 period? a) Operating activities. b) Investing activities. c) Financing activities

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

B. TRUE OR FALSE. 1) T F 2) T F 3) T F 4) T F 5) 6) T F T F 7) T F Indicate whether each statement is true or false. Cash equivalents include short-term, highly liquid investments that mature in 6 months, such as T-Bills and T-Notes. The FASB prefers that the direct method of the statement of cash flows be used; but if used, a reconciliation of net income to cash provided by operations must also be included. If 5% of revenues are derived from a single customer, the company must disclose the total amount of revenues from each such customer. Although potentially helpful to financial statement readers, information about significant foreign sales of a multinational corporation does not have to be disclosed in the notes to the financial statements. Auditors rarely give unmodified (unqualified) audit opinions because the SEC will bar corporations receiving such opinions from selling their stock publicly. The direct method of cash flow statement is the most popular method used by corporations…
A company is considering two mutually exclusive investments with a discount rate of 10%.The cash flows of the projects over time follows: Time Project A Project B 0 - RM300,000 - RM405,000 1 - RM387,000 RM134,000 2 - RM193,000 RM134,000 3 - RM100,000 RM134,000 4 RM600,000 RM134,000 5 RM600,000 RM134,000 6 RM850,000 RM134,000 7 - RM180,000 RM0 Question: The company does not want to issue new share capital or debentures to financethis project. Recommend three (3) appropriate financing methods for this project.Provide support for your recommendations.
A long term investment in bonds with a cost of $500000 was sold for $600000 cash. (a) what was the gain or loss on the sale? (b) what was the effect of the transaction on cash flows? (c) how should the transaction be reported on the statement of cash flows if cash flows from operating activities are reported by the indirect method?
Subject :- Accounting
Some transactions that don’t increase or decrease cash must be reported inconjunction with a statement of cash flows. What activity of this type did Targetreport during each of the three years presented? What are two other such activitiesthat some companies might report?
Which of the following activities caused the greatest change in cash during the year? HINTS: You can find the breakdown of these activities on the Statements of Cash Flows. Multiple Choice O Operating activities Investing activities Financing activities
Use the following information to calculate the net cash provided or used by financing activities. (a) Paid $29,800 cash to settle long-term notes payable at its $29,800 maturity value. (b) Acquired machinery for $12,900 cash. (c) Paid cash dividend of $13,900. (d) Net Income was $10,900. (e) Issued common stock for $40,900 cash. Statement of Cash Flows (partial) Cash flows from financing activities
Using the Exhibit below, assume that the balance of Accounts Payable was $60,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Payable is $65,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts payable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of…
Staley Inc. reported the following data: Net income Depreciation expense Loss on disposal of equipment Increase in accounts receivable Increase in accounts payable Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. $485,300 57,200 30,500 22,400 12,100 Staley Inc. Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities
Exercise 15-2 (Algo) Net Cash Provided by Operating Activities [LO15-2] For the year just completed, Hanna Company had net income of $81,000. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows: Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income taxes payable December 31 Beginning of Year End of Year $ 60,000 $ 162,000 $ 448,000 $ 11,000 $368,000 $ 7,500 $ 35,000 $ 78,000 $ 186,000 $ 346,000 $ 14,000 $ 390,000 $ 12,000 $ 25,000 The Accumulated Depreciation account had total credits of $44,000 during the year. Hanna Company did not record any gains or losses during the year.
Using the Exhibit below, assume that the balance of Accounts Payable was $50,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Payable is $35,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts payable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of…
Novak Inc., a retailer of garden tools that follows ASPE, had the following statements prepared as of December 31, 2023: Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation-equipment Total assets NOVAK Inc. Comparative Statement of Financial Position December 31 Accounts payable Income tax payable Long-term loans payable Common shares Retained earnings Total liabilities and shareholders' equity Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Interest expense Gain on disposal of equipment Income before income tax Net income Income tax expense 1. Additional information: 3. 2023 $71,380 $11.200 57,400 (2,100) 41,800 NOVAK Inc. Income Statement Year Ended December 31, 2023 (33,000) $297,080 5,500 154,000 $50,000 4,200 60,000 126,000 $297,080 56,880 $370,000 197,000 173,000 117,400 55,600 9,100 46,500 22,320 $24,180 2022 $53,900 50,800 74,000 4,100 126,000 (22,100) $286,700 $38,500 6,400 69,500 127,200 45,100 Dividends on…