How do Other Payables impact Avett Inc.'s 2020 Statement of Cash Flows? Question 17 options: The periodic change in Other Payables is subtracted in Cash Flows from Investing The periodic change in Other Payables is added in Cash Flows from Operations The periodic change in Other Payables is subtracted in Cash Flows from Financing The periodic change in Other Payables is added in Cash Flows from Financing The periodic change in Other Payables is added in Cash Flows from Investing The periodic change in Other Payables is not included on the Statement of Cash Flows The periodic change in Other Payables is subtracted in Cash Flows from Operations
How do Other Payables impact Avett Inc.'s 2020 Statement of Cash Flows? Question 17 options: The periodic change in Other Payables is subtracted in Cash Flows from Investing The periodic change in Other Payables is added in Cash Flows from Operations The periodic change in Other Payables is subtracted in Cash Flows from Financing The periodic change in Other Payables is added in Cash Flows from Financing The periodic change in Other Payables is added in Cash Flows from Investing The periodic change in Other Payables is not included on the Statement of Cash Flows The periodic change in Other Payables is subtracted in Cash Flows from Operations
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How do Other Payables impact Avett Inc.'s 2020 Statement of
Question 17 options:
|
The periodic change in Other Payables is subtracted in Cash Flows from Investing |
|
The periodic change in Other Payables is added in Cash Flows from Operations |
|
The periodic change in Other Payables is subtracted in Cash Flows from Financing |
|
The periodic change in Other Payables is added in Cash Flows from Financing |
|
The periodic change in Other Payables is added in Cash Flows from Investing |
|
The periodic change in Other Payables is not included on the Statement of Cash Flows |
|
The periodic change in Other Payables is subtracted in Cash Flows from Operations |
![CONSOLIDATED INCOME STATEMENT
(in millions)
December 31, 2020
$20,000
(10,000)
(10,000)
(8,000)
2,000
(500)
$1,500
Revenues
Cost of Goods Sold
Profit Margin
SG&A
Pre-Tax Income
Тах Expense
Net Income
Additional Information
> No Property, Plant & Equipment (PPE) was sold during 2020.
> No short-term investments were sold during the year.
> All depreciation expense is included in SG&A
> Because there is no dividends payable account at either the start of end of the year, you may
assume all dividends declared in 2020 were paid in 2020.
Тo Do
> Complete the 2020 Cash Flow Statement on the following page.
Note: You may use the worksheet provided on the last page to help you prepare the Cash Flow Statement.
Hint #1 PPE: Remember to evaluate changes in gross PPE separate from changes in accumulated
depreciation. Recall gross PPE less accumulated depreciation equals net PPE.
Hint #2 Stock Issuance: Remember the total change in cash due to stock issuances/repurchases is the sum
of the change in common stock (stated par value) and additional paid in capital (APIC).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3a4f9c71-5d26-45f6-9881-8adbb435ad05%2Fc4b9d923-70ea-48b1-af7e-d4031d2ec828%2Fwpkdd4d_processed.png&w=3840&q=75)
Transcribed Image Text:CONSOLIDATED INCOME STATEMENT
(in millions)
December 31, 2020
$20,000
(10,000)
(10,000)
(8,000)
2,000
(500)
$1,500
Revenues
Cost of Goods Sold
Profit Margin
SG&A
Pre-Tax Income
Тах Expense
Net Income
Additional Information
> No Property, Plant & Equipment (PPE) was sold during 2020.
> No short-term investments were sold during the year.
> All depreciation expense is included in SG&A
> Because there is no dividends payable account at either the start of end of the year, you may
assume all dividends declared in 2020 were paid in 2020.
Тo Do
> Complete the 2020 Cash Flow Statement on the following page.
Note: You may use the worksheet provided on the last page to help you prepare the Cash Flow Statement.
Hint #1 PPE: Remember to evaluate changes in gross PPE separate from changes in accumulated
depreciation. Recall gross PPE less accumulated depreciation equals net PPE.
Hint #2 Stock Issuance: Remember the total change in cash due to stock issuances/repurchases is the sum
of the change in common stock (stated par value) and additional paid in capital (APIC).
![CONSOLIDATED BALANCE SHEET
(in millions)
Year Ending
Dec. 31
2020
2019
ASSETS
Cash and Cash Equivalents
$1,000
$800
Accounts Receivable
300
500
Merchandise Inventory
880
650
Short Term Investments
145
120
TOTAL CURRENT ASSETS
2,325
2,070
PP&E, net accumulated depreciation of
$600 in 2020 and $500 in 2019
1,250
1,000
TOTAL ASSETS
$3,575
$3,070
LIABILITIES
Accounts Payable
Other Payables
$530
$500
410
362
TOTAL CURRENT LIABILITIES
940
862
Mortgage Payable
Long-Term Bank Loan
700
900
850
TOTAL LIABILITIES
1,840
2,412
OWNERS EQUITY
Common Stock
80
70
Preferred Stock
Additional Paid in Capital
Retained Earnings
TOTAL OWNERS EQUITY
290
250
1,365
1,735
338
658
TOTAL LIABILITIES + OWNERS EQUITY
$3,575
$3,070](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3a4f9c71-5d26-45f6-9881-8adbb435ad05%2Fc4b9d923-70ea-48b1-af7e-d4031d2ec828%2Fnflp20o_processed.png&w=3840&q=75)
Transcribed Image Text:CONSOLIDATED BALANCE SHEET
(in millions)
Year Ending
Dec. 31
2020
2019
ASSETS
Cash and Cash Equivalents
$1,000
$800
Accounts Receivable
300
500
Merchandise Inventory
880
650
Short Term Investments
145
120
TOTAL CURRENT ASSETS
2,325
2,070
PP&E, net accumulated depreciation of
$600 in 2020 and $500 in 2019
1,250
1,000
TOTAL ASSETS
$3,575
$3,070
LIABILITIES
Accounts Payable
Other Payables
$530
$500
410
362
TOTAL CURRENT LIABILITIES
940
862
Mortgage Payable
Long-Term Bank Loan
700
900
850
TOTAL LIABILITIES
1,840
2,412
OWNERS EQUITY
Common Stock
80
70
Preferred Stock
Additional Paid in Capital
Retained Earnings
TOTAL OWNERS EQUITY
290
250
1,365
1,735
338
658
TOTAL LIABILITIES + OWNERS EQUITY
$3,575
$3,070
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