can you explain how they got a for question 1 and c for question 2, like where did the 10,600 come from and where did the 3000 come from on the cash flow statement on the left side of the second image Questions 1- 45 are based on the following information for Tournesol Inc. (Cash flowstatement and Financial Statement Analysis questions)The income statement for the year ended December 15, 2018, for Tournesol Inc.contains the following information:Tournesol Inc.Income StatementYear Ended December 15, 2018SaleCost of goods soldRent ExpenseWages and Salaries ExpenseAmortization ExpenseResults of Sale of equipmentInterest ExpenseIncome Tax ExpenseProfitCashAccounts ReceivableInventoryPrepaid ExpensesTournesol Inc. comparative balance sheet at December 15, 2018EquipmentAccumulated Depreciation - equipmentTotal AssetsAccount PayableWages and Salaries PayableIncome taxes payableDividends PayableLong-term Notes PayableCommon sharesRetained EarningsTotal Liabilities & Shareholders' Equity20187,000$$ 5,000$$10,0002,400$ 34,000$ (12,000)$46,400$$3,5006,800$1,200$1,000$7,000$9,000$17,900$ 46,400$ 100,000$ (52,000)$ (6,000)$ (15,000)$(4,000)$1,000(1,600)(2,000)20,400$$$2017$1,000$9,000$13,000$ 5,000$40,000$ (18,000)$ 50,000$$$$$22,000$ 10,000$2,000$ 50,0005,0005,5003,0002,500 Operating activitiesProfitAdjustments to reconcile profit to net cashprovided by operatingactivitiesDepreciation Expense(Gain) loss on Sale ofEquipmentDecrease (Increase) in accounts receivableDecrease (increase) in InventoryDecrease (Increase) in Prepaid Expenses(Decrease) Increase in Accounts payable(Decrease) Increase in Wages payable(Decrease) Increase in Income TaxesPayableNet cash provided by operating activitiesInvesting activitiesSale of EquipmentPurchase of EquipmentNet cash used by investingPavNd be aNet Increase in Cash$ 4,000$ (1,000)$4,0003,000$2,600$ (1,500)$ 1,300$ (1,800)$$ 1,000$ (4,000)Working capital $ 7,600$ 20,400$ 10,600$ 31,000$ (3,000)S 6.000Q1Q2Questions 1-13 are for the Cash Flow statement for Tournesol Inc. prepared using the indirectmethod.What is the Total adjustment to reconcile profit to net cash provided by operations?$$$$none of the aboveA)B)C)D)E)What is the Net cash generated or (used) by Investing activities?$9,300-$1,000$(3,000)1,000$none of the aboveA)B)10,60014,60016,10011,900%D)E)

Statement of cash flows is divided into 3 activities viz. operating activities, Investing…

Operating activities Profit Adjustments to reconcile profit to net cash provided by operating activities Depreciation Expense (Gain) loss on Sale of Equipment Decrease (Increase) in accounts receivable Decrease (increase) in Inventory Decrease (Increase) in Prepaid Expenses (Decrease) Increase in Accounts payable (Decrease) Increase in Wages payable (Decrease) Increase in Income Taxes Payable Net cash provided by operating activities Investing activities Sale of Sale of Equipment Purchase of Equipment Net cash used by investing Net Increase in Cash $ 4,000 $(1,000) $4,000 $ 3,000 $ 2,600 $ (1,500) $ 1,300 Working capital $ 7,600 $ 1,000 $ (4,000) $ 20,400 $ (1,800) $10,600 $ 31,000 $ (3,000) $6.000 Q1 Q2 Questions 1-13 are for the Cash Flow statement for Tournesol Inc. prepared using the indirect method. What is the Total adjustment to reconcile profit to net cash provided by operations? $ $ $ $ none of the above B) C) D) E) A) B) What is the Net cash generated or (used) by Investing activities? $ 9,300 -$ 1,000 $ (3,000) 1,000 $ none of the above M 10,600 14,600 D) E) 16,100 11,900

Operating activities Profit Adjustments to reconcile profit to net cash provided by operating activities Depreciation Expense (Gain) loss on Sale of Equipment Decrease (Increase) in accounts receivable Decrease (increase) in Inventory Decrease (Increase) in Prepaid Expenses (Decrease) Increase in Accounts payable (Decrease) Increase in Wages payable (Decrease) Increase in Income Taxes Payable Net cash provided by operating activities Investing activities Sale of Sale of Equipment Purchase of Equipment Net cash used by investing Net Increase in Cash $ 4,000 $(1,000) $4,000 $ 3,000 $ 2,600 $ (1,500) $ 1,300 Working capital $ 7,600 $ 1,000 $ (4,000) $ 20,400 $ (1,800) $10,600 $ 31,000 $ (3,000) $6.000 Q1 Q2 Questions 1-13 are for the Cash Flow statement for Tournesol Inc. prepared using the indirect method. What is the Total adjustment to reconcile profit to net cash provided by operations? $ $ $ $ none of the above B) C) D) E) A) B) What is the Net cash generated or (used) by Investing activities? $ 9,300 -$ 1,000 $ (3,000) 1,000 $ none of the above M 10,600 14,600 D) E) 16,100 11,900

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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