Prepare Cashflow Statement for ABC company from the following information. Showing your workings.
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Prepare Cashflow Statement for ABC company from the following information. Showing your workings. (Unit: CU1000)
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- When using the Indirect Method of preparing the Statement of Cash Flows, in the operating section, some accounts are added and some costs are subtracted. If you had to explain to someone why an increase in accounts receivable is subtracted and the opposite as to why a decrease In accounts recelvable is added, what information would you relay to them? (Include in your response the concept of accruals, FASB guidelines, sales and net income on the income statement, and the balance sheet). Answer should be in a paragraph form.help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all workingWhich of the following shows how paying cash to purchase supplies will affect a company's financial statements? Multiple Choice Assets = Liabilities + Assets Assets +/- Balance Sheet Assets +/- ΝΑ Balance Sheet = Liabilities + ΝΑ Balance Sheet = Liabilities + ΝΑ Balance Sheet = Liabilities + ΝΑ Stockholders' Equity Stockholders' Equity Stockholders' Equity ΝΑ Stockholders' Equity ΝΑ Revenue ΝΑ Revenue ΝΑ Revenue ΝΑ Revenue ΝΑ Income Statement Expense = Net Income ΝΑ Income Statement Expense = Net Income + Income Statement ΝΑ Expense = Net Income ΝΑ Income Statement ΝΑ Expense = Net Income ΝΑ ΝΑ Statement of Cash Flows -Operating Activity Statement of Cash Flows ΝΑ Statement of Cash Flows -Operating Activity Statement of Cash Flows ΝΑ
- Assuming Sherban reports dividends paid as a financing activity: Calculate net cash flow from operating activities. Use a proper three-line title. Calculate Sherban’s current cash debt coverage ratio, cash debt coverage ratio and free cash flow. Using your answers in part (b) and comment on Sherban’s liquidity and financial flexibility. Under IFRS, how else might Sherban account for cash dividends paid in the cash flow statement?1.Based on the sales forecast, the finance manager estimates the receipt of cash based on cash and ________. Group of answer choices accounts receivables inventory sales credit sales net incomeThe sale of treasury stock will be reported as a in the section of the cash flow statement. O Cash Outflovw; Operating O Cash Inflow, Financing O Cash Inflow; Operating O Cash Outflow; Financing
- According to your book Financial Management for Small Businesses, 2nd OER Edition, Explain why the statement of cash flows provides useful information that goes beyond income statement and balance sheet data?Prepare the cash flows for operating activity section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash outflows, a decrease in cash, cash payments, or any negative adjustments.Differentiate between a balance sheet and an income statement of a listed company. How are the two statements related? Why is it often necessary to standard the items in the financial statements? Describe how this could be implemented. How does the statement of cash flows differ from the income statement? What are the various components of the cash flow statement? Describe the contribution of each of the components in terms of their importance to the generation of cash of a company? Explain what is meant by the following statement: ‘A ringgit today is worth than a ringgit to be received in future.” Describe the possible factors contributing to this situation. Describe the essential differences between the following cash flow streams: Annuity versus perpetuity Annuity due versus ordinary annuity Illustrate with an example each. What is a bond sinking fund? What is the purpose of establishing a sinking fund? Are bonds that provide for a sinking fund regarded as being risker than…
- for Morston, Inc. have assembled the following data for the year icon to view the current accounts.) (Click the icon to view the transaction data.) ston's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities. .. he statement one section at a time, beginning with the cash flows from operating activities. (Use a m ox empty, do not select a label or enter a zero.) Data table Morston, Inc. Statement of Cash Flows Year Ended December 31, 2024 lows from Operating Activities: come 70,500 stments to Reconcile Net Income to Net Cash vided by (Used for) Operating Activities: Depreciation Expense Gain on Sale of Building Decrease in Accounts Receivable Increase in Merchandise Inventory Incroaco in Accounts Payabla Data table et asi Net Hel O Transaction Data for 2024: Issuance of common stock for cash Depreciation expense Purchase of equipment with cash Acquisition of land by issuing long-term notes payable Book value…I. Direction: Analyze the following transactions. Determine if the movement of cash is INFLOW or OUTFLOW. Write your answer on the second column. Determine if the cash activity is OPERATING< INVESTING Or FINANCING. Write your answer on the third column. If the transaction is non-cash, write NONCASH on both columns. Transaction Movement of cash Cash activity 1. collection from customers 2. payment of interest to lenders made by financial institutions 3. issuance of shares of stocks 4. proceed from loan from Metrobank 5. depreciation of equipment 6. sale of merchandise 7. sale of obsolete machineries 8. payment of salaries of employees. 9. payment of taxes 10. payment of dividendsPlease help me