The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dес. 31, 20Y1 Assets Cash $170 $53 Accounts receivable (net) 96 67 Inventories 60 36 Land 138 151 Equipment 77 58 Accumulated depreciation-equipment (21) (11) Total Assets $520 $354 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $66 $53 Dividends payable 10 Common stock, $1 par 34 17 Excess of paid-in capital over par 89 41 Retained earnings 321 243 Total liabilities and stockholders' equity $520 $354 The following additional information is taken from the records: 1. Land was sold for $33. 2. Equipment was acquired for cash. 3. There were no disposals of equipment during the year. 4. The common stock was issued for cash. 5. There was a $112 credit to Retained Earnings for net income. 6. There was a $34 debit to Retained Earnings for cash dividends declared.

The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dес. 31, 20Y1 Assets Cash $170 $53 Accounts receivable (net) 96 67 Inventories 60 36 Land 138 151 Equipment 77 58 Accumulated depreciation-equipment (21) (11) Total Assets $520 $354 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $66 $53 Dividends payable 10 Common stock, $1 par 34 17 Excess of paid-in capital over par 89 41 Retained earnings 321 243 Total liabilities and stockholders' equity $520 $354 The following additional information is taken from the records: 1. Land was sold for $33. 2. Equipment was acquired for cash. 3. There were no disposals of equipment during the year. 4. The common stock was issued for cash. 5. There was a $112 credit to Retained Earnings for net income. 6. There was a $34 debit to Retained Earnings for cash dividends declared.

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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a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: Net income ✓ Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation expense ✓ ✓ Gain on disposal of equipment ✓ Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in accounts payable Increase in income taxes payable Net cash flows from operating activities Feedback 00 00000
Does the statement of cash flows report only transactions that cause an increase or a decrease in cash? Explain.
Help with part "a" please!
IT MUST BE ACCURATE AND COMPLETE EXPLANATION Discuss the computation of Operating Cash Flow using the indirect method. Explain why do we add or deduct items or transactions.
Write the preparation of the Statement of Cash Flows by Direct method BI 1,
a. explain the information found on the statement of cash flow. b. how do the direct and indirect methods of preparing the statement of cash flow different?
The statement of cash flows does not include cash inflows and outflows for which of the following activities? a. Financing activities b. Operating activities c. Investing activities d. Revenue activities
Which one of the following statements best describes a cash outflow in relation to the statement of cash flows? A: A cash outflow is an expense. B: A cash outflow may have been paid or not. C: A cash outflow is associated to both revenue and capital expenditure. D: None of the above
abels and Amount Descriptions Instructions Labels Dec. 31, Dec. 31, December 31, 20Y3 20Y3 20Y2 For the Year Ended December 31, 20Y3 Amount Descriptions Assets 3 Cash $625,680.00 $586,230.00 Cash received from sale of investments 228,100.00 208,850.00 4 Accounts receivable (net) 5 Inventories Cash paid for purchase of land Cash paid for purchase of equipment Cash received from issuing common 640,910.00 617,650.00 0.00 240,620.00 6 Investments 7 Land 328,090.00 0,00 stock 704,540.00 553,320.00 8 Equipment 9 Accumulated depreciation-equipment Cash dividends (166,310.00) (147840.00) Decrease in accounts payable Decreașe in accounts receivable Decrease in accrued expenses payable 10 Total assets $2,361,010.00 $2,058,830.00 11 Liabilities and Stockholders' Equity $425,280.00 $404,550.00 52,020.00 12 Accounts payable Decrease in inventories 41,990.00 13 Accrued expenses payable Depreciation 24,190.00 20,170.00 14 Dividends payablie Gain on sale of investments 15 Common stock, $4 par…
The method of presenting cash flow from operations where net income is adjusted for items without any cash effect is called a. direct method b. indirect method c. allowance method d. reconciliation method
Required Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for in activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.)