19. Assume that a company provided the following statement of cash flows (all sales are onaccount):Operating activities:Net IncomeAdjustments to convert net income to a cash basisDepreciationDecrease in accounts receivableIncrease in inventoryincrease in accounts payableNet cesh provided by (used in) operating activitiesInvesting activities:Additions to property, plant, & equipmentNet cash provided by (used in) investing activitiesFinancing activities:Issuance of common stockCash dividends paidNet cash provided by (used in) financing activitiesNet increase in cash and cash equivalentsBeginning cash and cash equivalents:Ending cash and cash equivalents i$152(10)4(14)$451156(40)(9)$ 13If the company's sales were $212, then its cash collections from customers were:A. $220.B. $214.C. $204.D. $210.fatione During the

The movement of money into and out of a business or financial entity over a given time period is…

Operating activities: Net income Adjustments to convert net income to a cash basis: Depreciation Decrease in accounts receivable Increase in inventory Increase in accounts payable Nel cash provided by (used in) operating activities Investing activities: Additions to property, plant, & equipment in investing activities

Operating activities: Net income Adjustments to convert net income to a cash basis: Depreciation Decrease in accounts receivable Increase in inventory Increase in accounts payable Nel cash provided by (used in) operating activities Investing activities: Additions to property, plant, & equipment in investing 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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26.A gain on the sale of a plant asset in the ordinary course of business should be presented in a statement of cash flows prepared using the indirect method as an addition to net income Group of answer choices True False
Spreadsheet and Statement Total Liabilities and Shareholders' Equity $3,200 $3,990 The following 2016 information is available for Stewart Company: Partial additional information: The equipment that was sold for cash had cost $400 and had a book value of $300. Land that was sold brought a cash price of $530. Fifty shares of stock were issued at par. Condensed Income Statement for 2016 Sales $9,000 Cost of goods sold (6,000) Required: Other expenses (2,000) Making whatever additional assumptions that are necessary, Loss on sale of equipment (260) Gain on sale of land 400 1. Prepare a spreadsheet to support a 2016 statement of cash flows for Stewart. If an amount is zero, enter "0". Net income $1,140 STEWART COMPANY Cash Flows Worksheet For Year Ended December 31, 2016 Worksheet Worksheet Comparative Balance Sheets Balances Balances Balances Entries Entries December 31, December 31, 12/31/2015 12/31/2016 Change Debit Credit Debits 2015 2016 Cash Cash $700 $1,130 Noncash Accounts:…
about the cash flow problem, confusing.
Statement of Cash Flows The following is a list of the items for Lombardo Company's 2019 statement of cash flows: a. depreciation expense, $4,300 b. proceeds from sale of land, $5,500 c. payment of dividends, $5,000 d. net income, $8,000 e. conversion of bonds to common stock, $7,000 k. ending cash balance, $14,000 f. increase in accounts payable, $3,000 Required: Prepare the statement of cash flows. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments. LOMBARDO COMPANY Statement of Cash Flows For Year Ended December 31, 2019 Operating Activities: Net income Adjustment for noncash income items: Add: Depreciation expense g. proceeds from issuance of note, $6,100 h. gain on sale of land, $1,900 i. payment for purchase of building, $13,000 j. increase in accounts receivable, $2,800 Adjustments for cash flow effects from working capital items:
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Under the indirect method, depreciation expense is addedto net income to report cash flows from operating activities. Does depreciation cause an inflow of cash?
Decrease in Accrued Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: Cash Payment for Acquisition of Plant Assets Net Cash Provided by (Used for) Investing Activities Help me solve this Demodocs example esc Get more help -
Apex Company prepared the statement of cash flows for the current year that is shown below: Apex Company Statement of Cash Flows-Indirect Method Operating activities: Net income Adjustments to convert net income to cash basis: Depreciation Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable Net cash provided by (used in) operating activities Investing activities: Proceeds from the sale of equipment Loan to Thomas Company Additions to plant and equipment Net cash provided by (used in) investing activities Financing activities: Increase in bonds payable Increase in common stock Cash dividends Net cash provided by (used in) financing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents $ 21,500 (60,300) (25,100) 10,100 54,300 (10,400) 4,400 14,400 (41,000) (121,500) 89,800 39,600 (28,500) $ 41,200…
COTB MC Qu. 15-48 (Algo) Assume that a company provided... Assume that a company provided the following statement of cash flows (all sales are on account): Operating activities: Net income Adjustments to convert net income to a cash basis: Depreciation Decrease in accounts receivable Increase in inventory Increase in accounts payable Net cash provided by (used in) operating activities Investing activities: Additions to property, plant, & equipment Net cash provided by (used in) investing activities Financing activities: Issuance of common stock Cash dividends paid Net cash provided by (used in) financing activities Net increase in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents How much is the company's free cash flow? $ 15 2 (10) 4 (40) 5 (16) $ 47 11 58 (40) (11) 7 6 $ 13
Depreciation and amortization are added back in computing operating cash flows because: a They represent outflows that record the wear and tear on assets over their estimated useful lives, as per accounting principles. b They represent variable costs of production. c It is required under SEC guidelines. d Excess cash has been deducted in the income statement.
Current assets include cash and other assets that are reasonably expected to be converted to cash or consumed during one year or within the normal operating cycle of the business if the operating cycle is longerthan one year. All other assets are classified as various types of noncurrent assets. In addition to cash andcash equivalents, current assets include short-term investments, accounts receivable, inventories, and prepaid expenses. Other asset classifications include investments; property, plant, and equipment; intangibleassets; and other assets
Which of the following is not reported as a cash flow from investing activities? A- Selling a long-term investment at a loss for cash B- Sale of depreciable asset for cash C- Purchase of a patent in exchange for cash D- Purchasing land in exchange for common stock