Cash Flow from Operating Activities$12,00022,00023,000Using the information for the Melville Corporation, calculate the cash flow from operating activities.Accounts payable increaseAccounts receivable increaseAccrued liabilities decreaseAmortization expenseCash balance, January 1Cash balance, December 314,0005,0007,000Cash paid as dividends31,000Cash paid to purchase land90,000Cash paid to retire bonds payable at par60,000Cash received from issuance of common stock37,000Cash received from sale of equipment19,000Depreciation expense29,000Gain on sale of equipment4,000Inventory decreaseNet incomePrepaid expenses increaseUse a negative sign with answer to show cash outflow from (used by) operating activities.Cash flow from (or used by) operating activities:13,00080,0002,000$ 0

To calculate the cash flow from operating activities for Melville Corporation, we start with the net…

Answered: Cash Flow from Operating Activities…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cash Received from: Sales to customers Interest on investment Collection of note receivable Sale of investments Issuance of notes payable Sale of long-term asset Issuance of equity Cash Paid for: Purchase of inventory Interest on notes payable Purchase of equipment Salaries to employees Operating expenses Dividends to stockholders Purchase of supplies Income and property taxes Purchase of property Repurchase of stock $ 475,000 6,000 50,000 30,000 202,000 40,000 228,000 $ 33,000 5,000 18,000 140,000 25,000 20,000 3,000 11,000 400,000 8,000 The balance of cash at the beginning of 2024 was $220,000. दे Required: Prepare a statement of cash flows for the year for Shepa Incorporated, (Hint. For operating, investing, and financing activities, list the inflows and subtract the outflows to calculate net cash flows for each type of activity.) Note: Amounts to be deducted should be indicated with a minus sign.
Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $220,000 of bonds, on which there was $2,200 of unamortized discount, for $229,000. b. Sold 7,000 shares of $15 par common stock for $30 per share. c. Sold equipment with a book value of $51,800 for $74,600. d. Purchased land for $362,000 cash. e. Purchased a building by paying $75,000 cash and issuing a $120,000 mortgage note payable. f. Sold a new issue of $150,000 of bonds at 98. g. Purchased 4,400 shares of $15 par common stock as treasury stock at $28 per share. h. Paid dividends of $1.60 per share. There were 34,000 shares issued and 5,000 shares of treasury stock. Effect Amount a. b. C. d. e. f. g. h.
Free Cash Flow The following information is from the financial statements of Evans & Sons. Cash flow from operating activities $1,600,000 Capital expenditures 850,000 Current liabilities, beginning of year 300,000 Current liabilities, end of year 380,000 Calculate the free cash flow for Evans & Sons. $ 0
Effect of Transactions on Cash Flows State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $220,000 of bonds, on which there was $2,200 of unamortized discount, for $229,000. b. Sold 12,000 shares of $30 par common stock for $53 per share. c. Sold equipment with a book value of $52,900 for $76,200. d. Purchased land for $329,000 cash. e. Purchased a building by paying $75,000 cash and issuing a $120,000 mortgage note payable. f. Sold a new issue of $320,000 of bonds at 98. g. Purchased 4,900 shares of $35 par common stock as treasury stock at $63 per share. h. Paid dividends of $2.20 per share. There were 19,000 shares issued and 3,000 shares of treasury stock. Effect Amount а. b. $ С. d. е. $ f. $ g. 2$ h.
Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $310,000 of bonds, on which there was $3,100 of unamortized discount, for $322,000. b. Sold 7,000 shares of $30 par common stock for $59 per share. c. Sold equipment with a book value of $48,700 for $70,100. d. Purchased land for $406,000 cash. e. Purchased a building by paying $51,000 cash and issuing a $110,000 mortgage note payable. f. Sold a new issue of $180,000 of bonds at 99. g. Purchased 2,900 shares of $25 par common stock as treasury stock at $46 per share. h. Paid dividends of $2.00 per share. There were 25,000 shares issued and 4,000 shares of treasury stock. a. b. C. d. e. f. 9. h. Effect Amount
How do I prepare a statement of cash flow's using the indirect method?
Free cash flow Dillin Inc. reported the following on the company's statement of cash flows in 20Y2 and 20Y1: 20Y2 20Y1 Net cash flow from operating activities $476,200 $456,200 Net cash flow used for investing activities (429,000) (379,000) Net cash flow used for financing activities (41,000) (57,000) Eighty percent of the net cash flow used for investing activities was used for the purchase of property, plant, and equipment. a. Determine Dillin's free cash flow for both years. 20Y2 20Y1 Free cash flow $ b. Has Dillin's free cash flow improved or declined from 20Y1 to 20Y2?
Days' cash on hand Financial statement data for years ending December 31 for Newton Company follow: 20Y9 20Y8 Cash (end of year) $25,500 $24,250 Short-term investments (end of year) 8,270 9,460 Operating expenses 60,135 63,780 Depreciation expense 13,225 11,400 Determine the days’ cash on hand for 20Y8 and 20Y9. Assume 365 days in a year. Round all calculations to one decimal place. Days’ Cash on Hand 20Y8: fill in the blank 1 66 days 20Y9: fill in the blank 2 days
Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $220,000 of bonds, on which there was $2,200 of unamortized discount, for $229,000. b. Sold 12,000 shares of $15 par common stock for $23 per share. c. Sold equipment with a book value of $47,400 for $68,300. d. Purchased land for $436,000 cash. e. Purchased a building by paying $58,000 cash and issuing a $110,000 mortgage note payable. f. Sold a new issue of $240,000 of bonds at 97. g. Purchased 3,300 shares of $25 par common stock as treasury stock at $48 per share. h. Paid dividends of $2.50 per share. There were 28,000 shares issued and 4,000 shares of treasury stock. a. b. C. d. e. f. Effect Cash payment Cash receipt Cash receipt Cash payment ✓ Cash payment - ✓ Cash receipt ✔ ✓ ✓ g. Cash payment -✔ h. Cash payment Amount 229,000 ✓ 161,000 X 100000
Statement of Cash Flows (Indirect Method)Use the following information regarding the Newcastle Corporation to prepare a statement of cash flows using the indirect method: Accounts payable decrease $7,000 Accounts receivable increase 9,800 Wages payable decrease 4,200 Amortization expense 22,400 Cash balance, January 1 42,000 Cash balance, December 31 9,800 Cash paid as dividends 8,400 Cash paid to purchase land 140,000 Cash paid to retire bonds payable at par 105,000 Cash received from issuance of common stock 63,000 Cash received from sale of equipment 16,800 Depreciation expense 54,600 Gain on sale of equipment 19,600 Inventory increase 18,200 Net income 134,400 Prepaid expenses increase 11,200 Remember to use negative signs with answers when appropriate. NEWCASTLE CORPORATIONStatement of Cash FlowsFor Year Ended December 31 Cash Flow from Operating Activities Net Income Answer Add (deduct) items to convert net income to cash basis…

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