Statement of Cash FlowsThe following is a list of items for Witts Company's 2016 statement of cash flows:a. Receipt from sale of equipment, $2,700 b. Increase in inventory, $3,900 c. Net income, $13,500 d. Payment for purchase of building, $29,000 e. Depreciation expense, $8,700 f. Receipt from issuance of bonds, $8,000 g. Increase in prepaid expenses, $800 h. Loss on sale of equipment, $2,200 i. Payment of dividends, $5,200 j. Decrease in accounts receivable, $1,700 k. Issuance of common stock for land, $6,900 l. Decrease in accounts payable, $1,500 m. Beginning cash balance, $10,200 Required:1. Prepare the statement of cash flows. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments.WITTS COMPANY Statement of Cash Flows For Year Ended December 31, 2016 Operating Activities: - An input field to select and enter relevant cash flow items from operations. Adjustment for noncash income items: - An input field to enter noncash adjustments affecting net income. Adjustments for cash flow effects from working capital items: - Multiple input fields to enter changes in working capital such as accounts receivable, inventory, prepaid expenses, and accounts payable. Investing Activities: - An input field to enter cash flows from investing activities, including purchases or sales of equipment and buildings. The layout of the statement is structured to categorize various cash flow activities. Each category allows for detailed entry of cash inflows and outflows to calculate the net cash provided by or used in each activity type. The statement culminates in a calculation that reconciles these activities with the beginning cash balance to determine the ending cash balance for the period. ## Investing Activities:- [Dropdown Selection]- Amount: $_____## Financing Activities:- [Dropdown Selection]- Amount: $_____### Cash Flow Statements- **Cash, January 1, 2016:** $_____- **Cash, December 31, 2016:** $_____## Question:2. If Witts Company uses IFRS, and chooses to show dividends as an operating activity, which of the following will result? - a. Witts Company would report net cash provided by operating activities of $25,100. - b. Witts Company would report net cash provided by operating activities of $14,700. - c. Witts Company would report net cash by financing activities of $2,800. - d. Witts Company would report net cash used by financing activities of $2,400.- [Dropdown Selection]### DescriptionThis section is designed to educate on cash flow activities within a financial setting. It provides a template for recording cash flow related to investing and financing activities, and requires the user to enter monetary values. Additionally, there is a question regarding the International Financial Reporting Standards (IFRS) and its impact on the classification of dividends, prompting the user to think critically about financial reporting outcomes.

The cash flow statement is prepared to estimate the net cash inflow or outflow from the business…

Answered: Statement of Cash Flows The following…

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

You work for Star walk limited, a large private organisation as the assistant financial controller. One of your duties is to reconcile the sales ledger each month. The ledger has failed to agree month after month. You strongly believe that it is associated with a number of bad debts being written off on the individual customer account but not included in the nominal ledger. You consider the differences to be material and have brought this to the attention of your superior officer who is the financial controller but he seems unwilling to act. You consider his behaviour as unethical. Required: a) Discuss how the above scenario would affect the financial statement of Star Walk Limited. b) As a professional accountant, discuss action(s) that you would take in this situation.
The following information is available from the current period financial statements: Net income $ 144,682 Depreciation expense $30,263 Increase in accounts receivable $15,664 Decrease in accounts payable $22,233 The net cash flow from operating activities using the indirect method is
Provide table
Cash Flows from Operating Activities—Indirect Method The income statement disclosed the following items for the year: Depreciation expense $53,700 Gain on disposal of equipment 31,310 Net income 391,700 The changes in the current asset and liability accounts for the year are as follows: Increase(Decrease) Accounts receivable $8,360 Inventory (4,760) Prepaid insurance (1,780) Accounts payable (5,670) Income taxes payable 1,780 Dividends payable 1,250 a. Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on disposal of equipment Changes in current operating assets and…
create a statement of cash flows with the given information: Scruggs, Inc. Balance Sheet December 31, 2017 2016 Cash $17,000 $12,000 Account receivable 60,000 40,000 Inventory 84,000 70,000 Prepaid expenses 6,000 4,000 Property, Plant & Equipment 250,000 210,000 Accumulated depreciation (60,000) (48,000) $357,000 $288,000 Accounts payable $35,000 $40,000 Interest payable 3,000 4,000 Income taxes payable 22,000 12,000 Bonds payable (due in 2020) 90,000 64,000 Common Stock $5 par 95,000 80,000 Retained Earnings 112,000 88,000 $357,000 $288,000…
Blossom Company reported net income of $148,500. For 2022, depreciation was $45,100, and the company reported a gain on sale of Investments of $12.100. Accounts recelvable increased $25,100 and accounts payable decreased $23.100. Compute net cash provided by operating activities using the indirect method. Net cash provided by operating activities
Prepare a statement of cash flows for the Maness Coporation, using the infromation shown in the balance sheets. 2017 2018 Changes Assets Cash $150 $125 $(25) Accounts receiveable 350 375 25 Inventory 475 550 75 Total current assets 975 1,050 75 Gross fixed assets 2425 2750 325 Accumulated depreciation (1000) (1200) (200) Net fixed assets 1425 1550 125 TOTAL ASSETS 2400 2600…
Subject: acounting
Calculate the Cash Flows in the Statement of Cash Flows below from the provided Balance sheet and Income Statement BALANCE SHEET (in millions of dollars) INCOME STATEMENT (in millions of dollars) 2015 2014 2015 2014 Assets Net sales $3,000.0 $2,850.0 Cash and equivalents 10 $ 80 Operating costs except depreciation and amortizatio 2,616.2 2,497.0 90.0 100.0 Accounts receiva ble 375 315 Depreciation and amortization $ 283.8 $ 263.0 Inventories 615 415 Earnings before interest and taxes (EBIT) Total current asse ts $ 1,000 $ 810 Less interest 88.0 60.0 $ 195.8 $ 203.0 Net plant and equipment 1,000 870 Earnings before taxes (EBT) $ 2,000 1,680 Total assets Taxes 78.3 81.2 117.5 $ 121.8 Net income Liabilities and Equity Common dividends 57.5 53.0 Addition to re tained earnings Accounts payable $ $ 60 $ 30 60.0 $ 68.8 Accruals 140 130 Notes payable 110 60 Tax rate 40% 40% 310 $ Total current liabilities 220 Long-term bonds 750 580 $ 1,060 $ Total liabilities 800 Common stock (50,000,000…
In its 2017 annual report, Allen Company reports the following (in thousands): 2017 2016 Total revenue $102,500 $99,400 Property, plant, equipment, gross 41,300 38,700 Property, plant, equipment, net 16,540 14,905 Depreciation expense 1,935 1,655 If revenue growth is projected to be 5%, the 2018 forecasted depreciation expense to be added back on the statement of cash flows is: A. $1,935 thousand B. $2,147 thousand C. $1,766 thousand D. $2,065 thousand E. None of the above disregard

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS