The following relates to the composition of cashflows of Company P and Company Q.Other than this, both companies are similar in most aspects.Company PNet cash flows from:2022 ($)2021 ($)Company Q2022 ($) 2021 ($)Operating activities(45,000)18,000135,00063,000Investing activitiesProceeds from sale ofoperating assetsPurchase of operating assetsFinancing activities63,000(72,000)(36,000)Proceeds from borrowings27,0009,000Repayment of debts(18,000)Net cash flows45,000 27,00045,00027,000Examine the cashflows of both companies. Which is stronger financially?

Company P: Negative operating cash flows of $45,000 in 2022. Positive operating cash flows of…

Answered: The following relates to the…

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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Free cash flow Dillin Inc. reported the following on the company’s statement of cash flows in 20Y2 and 20Y1: Line Item Description 20Y2 20Y1 Net cash flows from operating activities $520,000 $485,000 Net cash flows used for investing activities (432,000) (394,000) Net cash flows used for financing activities (42,000) (58,800) Of the net cash flows used for investing activities, 60% was used for the purchase of property, plant, and equipment. a. Determine Dillin’s free cash flow for both years.
Use the information provided below to prepare the Cash Flow Statement of Rolex Limited for the year ended 31December 2021.INFORMATIONThe following information was extracted from the records of Rolex Limited for the financial year ended 31 December2021.ROLEX LIMITEDSTATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021RSales 4 140 000Cost of sales (2 020 000)Gross profit 2 120 000Selling and administrative expenses (840 000)Operating profit 1 280 000Interest expense (80 000)Profit before tax 1 200 000Company tax (320 000)Profit after tax 880 000STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:ASSETS 2021 (R) 2020 (R)Non-current assets 3 740 000 2 940 000Property, plant and equipment 3 440 000 2 940 000Investments 300 000 0 Current assets 1 080 000 900 000Inventories 480 000 500 000Accounts receivable 510 000 320 000Cash and cash equivalents 90 000 80 000Total assets 4 820 000 3 840 000EQUITY AND LIABILITIESEquity 3 120 000 2 600 000Ordinary share capital 2 000 000 2…
Prepare the statement of cash flows using the indirect method of presenting cash flows from operating activities
Problem 4: Following are the comparative statements of financial position of CPA Company to add in preparing a statement of cash flows: ● CPA Company Statement of Financial Position December 31, 2021 and 2020 Assets Cash and cash equivalents Financial assets at FVPL Accounts receivable Inventory Long-term investments Property, plant and equipment Less: accumulated depreciation Patents Less: accumulated amortization Total assets Liabilities and Equity Accounts payable Income tax payable 12% bonds payable Less: discount on bonds payable Ordinary share capital Retained earnings The following events took place in 2021: 2021 P900,000 2020 P620,000 300,000 400,000 1,956,500 1,445,000 3,050,000 3,200,000 1,000,000 1,250,000 9,000,000 8,000,000 (2,200,000) (2,000,000) 600,000 600,000 (100,000) P14,606,500 P13,415,000 P2,200,000 P1,900,000 34,500 45,000 4,000,000 4,000,000 (250,000) (300,000) 7,500,000 6,500,000 1,122,000 1,270,000 P14,606,500 P13,415,000 CPA Company declared and paid cash…
Please help me with show all calculation thanku
Prepare the Cash Flow Statement for Dell Technologies Inc. for January 29th 2021 using the Direct Method. DELL TECHNOLOGIES INC. CONSOLIDATED STATEMENTS OF INCOME (LOSS) 29TH JANUARY 2021 (in millions) Net Revenue 94,224 Cost of Net Revenue (64,807) Gross Margin 29,417 Operating Expenses: Selling, General & Admin 18,998 Depreciation Expense 5,275 Total Operating Expenses (24,273) Operating Profit 5,144 Interest Expense (1,474) Pretax Income 3,670 Income Tax Expense (165) Net Profit 3,505 DELL TECHNOLOGIES INC. CONSOLIDATED STATEMENTS OF FINANCIAL…
Reporting Net Cash Flow from Operating Activities The following information is available for Bernard Corporation for 2019: Net income $199,000 Decrease in accounts receivable 6,400 Increase in inventory 18,300 Decrease in prepaid rent 2,100 Increase in salaries payable 4,410 Decrease in income taxes payable 4,270 Increase in notes payable (due 2023) 50,000 Depreciation expense 44,700 Loss on disposal of equipment 11,000 Required: Compute the net cash flows from operating activities using the indirect method.
Preparing a Cash Flow Statement—Indirect Method Sketchers Corporation’s recent comparative balance sheet and income statement follow. Balance Sheets, December 31 2019 2020 Assets Cash and cash equivalents $12,800 $54,400 Accounts receivable (net) 16,000 28,800 Inventory 32,000 38,400 Investment, long-term 6,400 Plant assets 96,000 150,400 Accumulated depreciation (16,000) (22,400) Total assets $147,200 $249,600 Liabilities and Stockholders’ Equity Accounts payable $9,600 $16,000 Notes payable, short-term (nontrade) 12,800 9,600 Notes payable, long-term 32,000 57,600 Common stock, no-par 80,000 128,000 Retained earnings 12,800 38,400 Total liabilities andstockholders’ equity $147,200 $249,600 Income Statement,For Year Ended December 31 2020 Sales revenue $480,000 Cost of goods sold (288,000) Gross margin 192,000 Depreciation expense (6,400) Other operating expenses (104,400) Net income $83,200 Additional…
Prepare the Cash Flow Statement for the year ended 31 December 2022 using info below The information given below was extracted from the accounting records of Excellence Limited Information from the Statement of Financial Position as at 2022 R 2021 R Ordinary share capital 750 000 580 000 Retained earnings 145 000 60 000 Property, plant and equipment (see note) 475 000 410 000 Investments 248 000 220 000 12.5% Debentures 125 000 120 000 Inventory 320 000 260 000 Trade debtors 57 000 67 500 Bank ? Prepaid expenses 15 500 2 500 Trade creditors 60 000 85 000 Bank overdraft 50 000 South African Revenue Services 25 000 40 000 Extract from the Statement of Comprehensive Income for the year ended 31 December 2022 Profit before interest and tax 342 000 Depreciation on equipment 25 000 Dividends received on investment 30 000 Interest on debentures 22 500…
Using the information from below make a statement of cash flows for the year ended december 31, 2020 using the direct method.
A-5
How do I describe the cash flow pattern

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