Q3. Cash flow statement complements the income statement and the balance sheet summarizing all cash inflows and outflow transactions in the company within the given financial year. However, there are two different methods of preparing the cash flow statement-direct and indirect. A) Enlist the differences between Direct and Indirect method of cash flow statement B) Let's consider the case of XYZ Ltd., a manufacturing company based in India. In the fiscal year 2022, XYZ Ltd. raised INR 50 crores by issuing new equity shares and INR 100 crores by taking on long-term debt. The company also repaid INR 80 crores in long-term debt and paid INR 30 crores in dividends to shareholders. Calculate the cash flows from financial activities for the company.

Q3. Cash flow statement complements the income statement and the balance sheet summarizing all cash inflows and outflow transactions in the company within the given financial year. However, there are two different methods of preparing the cash flow statement-direct and indirect. A) Enlist the differences between Direct and Indirect method of cash flow statement B) Let's consider the case of XYZ Ltd., a manufacturing company based in India. In the fiscal year 2022, XYZ Ltd. raised INR 50 crores by issuing new equity shares and INR 100 crores by taking on long-term debt. The company also repaid INR 80 crores in long-term debt and paid INR 30 crores in dividends to shareholders. Calculate the cash flows from financial activities for the company.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

I need help with Question 3 and 1 Please to show the working out. Thanks. 1. Reconstruct the company’s comparative balance sheet for 2013/2014 show the missing figures to include the appropriate sign as a positive or negative figure. 2. Which category of the statement of cash flow is considered as the most important? Why? 3. Prepare a complete statement of cash flows for 2014 using the indirect method using the information in line with your surname initial.
a. IAS 7 would prefer enterprises to use the direct method of presenting cash flow statement. However, almost all enterprises use the indirect method of presentation. Why do the accounting standard and most companies appear to differ on this issue? b. Cash flow statements are valuable source of information. However, there are certain important non-cash transactions that may occur during the year which will not be reported in a cash flow statement. Give any four (4) of such transactions.
Sheridan Corporation's comparative balance sheets are presented below. Cash Accounts receivable Land Buildings Accumulated depreciation-buildings Total Accounts payable Common stock Retained earnings Total SHERIDAN CORPORATION Comparative Balance Sheets December 31 Additional information: 1. 2. 3. 2022 $14,900 21,500 19,700 70,100 (14,800) $111,400 $12,100 75,400 23,900 $111,400 2021 $10,400 23,400 25,900 70,100 (10,700) $119,100 $31,300 70,600 17,200 $119,100 Net income was $22,400. Dividends declared and paid were $15,700. No noncash investing and financing activities occurred during 2022. The land was sold for cash of $4.900.
Part A. Using the numbers from the comparative financial statements, complete a statement of cash flow for the most recent year. Use the indirect format for operating cash flows. Part B. Write a Brief analysis about the company's performance during the last 3 years.
Evaluating a firm’s financial performance requires multidimensional analysis and cannot be confined to the Accounting information only. Explain with respect to your analysis of the attached financial statements.
Please donot provide solution in image format and provide solution in step by step format and fast solution. You have the following data available for Al Maha Company, which is the income statement at the end of 2022and the statement of financial position (balance sheet) at the end of 2021 and 2022. You are required to:1- Preparing a statement of retained earnings at the end of 20222- A list of cash inflows and outflows at the end of 20223 - A statement of cash flows according to operating, investment and financing activity at the end of 20224 - Free Cash Flow Calculation (from Assets) Free cash flow = operating cash flow - change in net fixed assets - change in net working capital (current assets - current liabilities) Balance sheet at the end of 2021 and 2022 2022 2021 Cash 24000 21000 Receivables 45000 39000 Inventory 30000 27000 Net Fixed Assets = Total - Accumulated Depreciation = (40,000 - 18,000 =) 2021 20000 22000 ( 42000 - 22000 = ) 2022 Total assets…
I need assistance with Question 1 and 3. Please show how you arrived with the answers. Requirements 1. Reconstruct the company’s comparative balance sheet for 2013/2014 and show the missing figures to include the appropriate sign as a positive or negative figure. 2. Which category of the statement of cash flow is considered as the most important? Why? 3. Prepare a complete statement of cash flows for 2014 using the indirect method using the information in line with your surname initial.
What is the operating cash flow in 2018? What is the change of working capital in 2018? What is the capital spending in 2018? What is the free cash flow in 2018？ 5. What is the cash flow to creditors in 2018? f. What is the cash flow to stockholders in 2018?
Review the statement of cash flows for Tesla Motors Inc. in ATC 14-1 on page 688. Discuss the cash position of the company by considering the following: Review the statement of cash flows for Tesla Motors Inc. in ATC 14-1 on page 688. Discuss the cash position of the company by considering the following: How can you explain the difference between cash flow from operating activities and the net loss for this company?
From the following information on the income statement and the balance sheet, what is free cash flow to the firm (FCFF) in 2019? Assume that the tax rate is 0.3. Income Statement  Items 2018 2019 Revenue 2,542 3,004 Cost of goods sold 1,017 1,235 SG&A expense 308 353 Depreciation 409 505 Interest expense 108 155 Balance Sheet  Items 2018 2019 Cash 151 308 Accounts receivable 456 903 Inventory 905 1,207 PP&E 9,087 12,843 Accumulated Dep 4,241 5,739 Accounts payable 605 656 Short-term debt 304 505 Long-term debt 3,044 3,448 Common stock 1,800 1,800 Retained earnings x x
I am needing help with the following question. I have attached a photo below. Jasneet Corporation’s comparative balance sheet for current assists and liabilities was as follows: (See attached photo) Adjust net income of $185,000 for changes in operating assets and liabilities to arrive at net cash flows from operating activities.
9. Help me selecting the right answer. Thank you