Homework Help is Here – Start Your Trial Now!
Business
Accounting
ABC Inc. Balance Sheet as at December 31, 2015 and 2016 ($ thousands) Current Assets Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Property, Plant & Equipment Less Accumulated Depreciation Property, Plant & Equipment, net Total Assets Liabilities and S/H Equity Current Liabilities Accounts Payable Notes Payable and short-term debt Total Current Liabilities Long-Term Debt Shareholders' Equity Common Shares Pald-In Capital Retained Earnings Total Total Liabilities and S/H Equity ABC Inc. Income Statement for 2015 and 2016 ($ thousands) Revenue Cost of Goods Sold Operating Expenses Depreciation Earnings Before Interest & Taxes (EBIT) Interest Paid Income Before Taxes (EBT) Taxes Paid Net Income (NI) Dividend $ 200 450 550 $1,200 2015 2,200 (1,000) 1,200 $2,400 $ 200 0 $ 200 $ 600 300 600 700 $1,600 $2,400 2015 $1,200 700 30 220 250 $ 200 120 2016 $1,450 850 40 200 $360 Inn 2016 60 300 120 $ 180 80 $ 150 425 625 $1,200 300 600 800 $1,700 $2,700 2,700 (1,200) 1,500 $2,700 $ 150 150 300 700 I

ABC Inc. Balance Sheet as at December 31, 2015 and 2016 ($ thousands) Current Assets Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Property, Plant & Equipment Less Accumulated Depreciation Property, Plant & Equipment, net Total Assets Liabilities and S/H Equity Current Liabilities Accounts Payable Notes Payable and short-term debt Total Current Liabilities Long-Term Debt Shareholders' Equity Common Shares Pald-In Capital Retained Earnings Total Total Liabilities and S/H Equity ABC Inc. Income Statement for 2015 and 2016 ($ thousands) Revenue Cost of Goods Sold Operating Expenses Depreciation Earnings Before Interest & Taxes (EBIT) Interest Paid Income Before Taxes (EBT) Taxes Paid Net Income (NI) Dividend $ 200 450 550 $1,200 2015 2,200 (1,000) 1,200 $2,400 $ 200 0 $ 200 $ 600 300 600 700 $1,600 $2,400 2015 $1,200 700 30 220 250 $ 200 120 2016 $1,450 850 40 200 $360 Inn 2016 60 300 120 $ 180 80 $ 150 425 625 $1,200 300 600 800 $1,700 $2,700 2,700 (1,200) 1,500 $2,700 $ 150 150 300 700 I

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
ABC Inc. Balance Sheet as at December 31, 2015 and 2016 ($ thousands) Current Assets Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Property, Plant & Equipment Less Accumulated Depreciation Property. Plant & Equipment, net Total Assets Liabilities and S/H Equity Current Liabilities Accounts Payable Notes Payable and short-term debl Total Current Liabilities Long-Term Debt Shareholders Equity Common Shares Paid-In Capital Retained Earnings Total Total Liabilities and S/H Equity ABC Inc. Income Statement for 2015 and 2016 ($ thousands) Revenue Cost of Goods Sold Operating Expenses Depreciation Earnings Before Interest & Taxes (EBIT) Interest Paid Income Before Taxes (EBT) Taxes Paid Net Income (NI) Dividend $ 200 450 550 $1,200 2.200 (1,000) 1,200 2015 $2,400 $ 200 0 $ 200 $ 600 300 600 700 $1,600 $2,400 2015 $1,200 700 30 220 $ 250 150 $ 200 80 $ 120 2016 $1,450 850 140 200 360 60 $ 300 120 $ 180 80 $ 2016 $ 150 425 625 $1,200 2,700 11.200) 1,500 $2,700 $ 150 150 300 300 600 800 $1.700 $2,700 700 I
Transcribed Image Text:ABC Inc. Balance Sheet as at December 31, 2015 and 2016 ($ thousands) Current Assets Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Property, Plant & Equipment Less Accumulated Depreciation Property. Plant & Equipment, net Total Assets Liabilities and S/H Equity Current Liabilities Accounts Payable Notes Payable and short-term debl Total Current Liabilities Long-Term Debt Shareholders Equity Common Shares Paid-In Capital Retained Earnings Total Total Liabilities and S/H Equity ABC Inc. Income Statement for 2015 and 2016 ($ thousands) Revenue Cost of Goods Sold Operating Expenses Depreciation Earnings Before Interest & Taxes (EBIT) Interest Paid Income Before Taxes (EBT) Taxes Paid Net Income (NI) Dividend $ 200 450 550 $1,200 2.200 (1,000) 1,200 2015 $2,400 $ 200 0 $ 200 $ 600 300 600 700 $1,600 $2,400 2015 $1,200 700 30 220 $ 250 150 $ 200 80 $ 120 2016 $1,450 850 140 200 360 60 $ 300 120 $ 180 80 $ 2016 $ 150 425 625 $1,200 2,700 11.200) 1,500 $2,700 $ 150 150 300 300 600 800 $1.700 $2,700 700 I
a) Identify the items the items that you need to adjust to Net Income to determine cash flow from operating activities ictions: On 1. Depreciation Expense 2. Year over year change in Accounts Receivable (2016 balance over 2015 balance) 3. Year over year change in Inventory (2016 balance over 2015 balance) 4. Year over year change in Accounts Payable (2016 balance over 2015 balance) b) Calculate cash flow from operating activities (CFO) for 2016 $ 180 Net Income Add: Depreciation Expense Add: Decrease in Accounts Receivable Less: Increase in inventory Less: Decrease in Accounts Payable Cash flow from Operations Accessibility: Investigate $ 200 $ 25 C) culate cash flow from investing activities for 2016 = - (Year over year change in gross balance of fixed asset or Property, Plant & Equipment) = -(2016 Gross balance - 2015 Gross balance) = $(2,700 2,200) = -$500 Search ($ 75) ($ 50) $ 280 SAMSUNG 13
Transcribed Image Text:a) Identify the items the items that you need to adjust to Net Income to determine cash flow from operating activities ictions: On 1. Depreciation Expense 2. Year over year change in Accounts Receivable (2016 balance over 2015 balance) 3. Year over year change in Inventory (2016 balance over 2015 balance) 4. Year over year change in Accounts Payable (2016 balance over 2015 balance) b) Calculate cash flow from operating activities (CFO) for 2016 $ 180 Net Income Add: Depreciation Expense Add: Decrease in Accounts Receivable Less: Increase in inventory Less: Decrease in Accounts Payable Cash flow from Operations Accessibility: Investigate $ 200 $ 25 C) culate cash flow from investing activities for 2016 = - (Year over year change in gross balance of fixed asset or Property, Plant & Equipment) = -(2016 Gross balance - 2015 Gross balance) = $(2,700 2,200) = -$500 Search ($ 75) ($ 50) $ 280 SAMSUNG 13
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS