Prepare a reconciliation of the total of the three sections of net cash flows from operating, investing, and financing activities to the change in cash.
Prepare a reconciliation of the total of the three sections of net cash flows from operating, investing, and financing activities to the change in cash.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
reparing a Cash Flow Worksheet
Guccii Corporation’s recent comparative
Balance Sheets, December 31 | 2019 | 2020 |
---|---|---|
Assets | ||
Cash and cash equivalents | $63,000 | $90,300 |
Investments, short-term | 0 | 12,600 |
71,400 | 88,200 | |
Merchandise inventory | 42,000 | 63,000 |
Investments, long-term | 0 | 42,000 |
Plant assets, net | 252,000 | 247,800 |
Patents | 12,600 | 11,340 |
Other assets | 29,400 | 29,400 |
Total assets | $470,400 | $584,640 |
Liabilities and |
||
Accounts payable | $50,400 | $92,400 |
Accrued expenses payable | 0 | 36,540 |
Bonds payable | 168,000 | 84,000 |
Common stock, par $10 | 147,000 | 168,000 |
Additional paid-in capital | 0 | 18,900 |
105,000 | 184,800 | |
Total liabilities and stockholders’ equity | $470,400 | $584,640 |
Income Statement, For Year Ended December 31 |
2020 |
---|---|
Sales revenue | $436,800 |
Cost of goods sold | (231,000) |
Depreciation expense | (33,600) |
Patent amortization | (1,260) |
Other operating expenses | (74,340) |
Net income | $96,600 |
Additional information for 2020
1. Retired bonds paying $84,000 cash.
2. Bought long-term debt investment in securities, $42,000 cash.
3. Purchased a plant asset, $29,400 cash.
4. Purchased short-term investment in securities (not held in a trading account), $12,600 cash.
5. Declared and paid cash dividends, $16,800.
6. Issued capital stock, 2,100 shares at $19 cash per share.
- Cash Flow Worksheet
- Cash Flow Reconciliation
b. Prepare a reconciliation of the total of the three sections of net
Cash Flow Reconciliation | Amount |
---|---|
Net cash provided (used) by operating activities | Answer
|
Net cash provided (used) by investing activities | Answer
|
Net cash provided (used) by financing activities | Answer
|
Net change in cash and cash equivalents | Answer
|
Cash and cash equivalents, January 1, 2020 | Answer
|
Cash and cash equivalents, December 31, 2020 | Answer
|
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