Trendy Apparel is a clothing retailer. It has no raw-materials or work-in-process inventories. Ignore any interest expenses and interest revenues. No dividends were declared or paid during the year. All changes to retained earnings occurred via the income statement. There was no waste or theft. Ignore the allowance for bad debts. You have to prepare the cash flow statement. You can do it your way, or you can follow the steps below: 1. The total change in accounts is given in the "change" column. 2. Change in cash = Change in assets + Changes in contra-assets, liabilities, and equity. This formula is already entered for change in cash in the ICF, FCF, and OCF columns. 3. Identify changes in accounts due to investing activities. 4. Identify changes in accounts due to financing activities. 5. Subtract changes due to investing and financing activities from the total change to arrive at changes due to operating activities. This formula is already entered in the OCF column. 6. Use this information to prepare the cash flow statement. 7. If your computations have errors, then the check cells will not be blank. Assets 1 2 Change ICF Cash 400.00 700.00 300.00 FCF OCF 0.00 0.00 300.00 Receivables [Accrued revenues] 300.00 900.00 600.00 600.00 Inventories 900.00 300.00 -600.00 #### Liabilities Payables to suppliers Equity Contributed capital Retained earnings Check Cash Flow Statement [YOU MAY NOT NEED ALL ROWS.] = OCF [Indirect format] | = ICF [Direct format] = FCF [Direct format] Net cash flows 700.00 400.00 -300.00 #### 500.00 700.00 200.00 200.00 400.00 800.00 400.00 400.00 Effect on cash 0.00-300.00 Check 0.00 0.00 Check Check 0.00-300.00 Check
Trendy Apparel is a clothing retailer. It has no raw-materials or work-in-process inventories. Ignore any interest expenses and interest revenues. No dividends were declared or paid during the year. All changes to retained earnings occurred via the income statement. There was no waste or theft. Ignore the allowance for bad debts. You have to prepare the cash flow statement. You can do it your way, or you can follow the steps below: 1. The total change in accounts is given in the "change" column. 2. Change in cash = Change in assets + Changes in contra-assets, liabilities, and equity. This formula is already entered for change in cash in the ICF, FCF, and OCF columns. 3. Identify changes in accounts due to investing activities. 4. Identify changes in accounts due to financing activities. 5. Subtract changes due to investing and financing activities from the total change to arrive at changes due to operating activities. This formula is already entered in the OCF column. 6. Use this information to prepare the cash flow statement. 7. If your computations have errors, then the check cells will not be blank. Assets 1 2 Change ICF Cash 400.00 700.00 300.00 FCF OCF 0.00 0.00 300.00 Receivables [Accrued revenues] 300.00 900.00 600.00 600.00 Inventories 900.00 300.00 -600.00 #### Liabilities Payables to suppliers Equity Contributed capital Retained earnings Check Cash Flow Statement [YOU MAY NOT NEED ALL ROWS.] = OCF [Indirect format] | = ICF [Direct format] = FCF [Direct format] Net cash flows 700.00 400.00 -300.00 #### 500.00 700.00 200.00 200.00 400.00 800.00 400.00 400.00 Effect on cash 0.00-300.00 Check 0.00 0.00 Check Check 0.00-300.00 Check
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Help me with this please, mainly the OCF, ICF, and FCF '
![Trendy Apparel is a clothing retailer. It has no raw-materials or work-in-process inventories.
Ignore any interest expenses and interest revenues.
No dividends were declared or paid during the year.
All changes to retained earnings occurred via the income statement.
There was no waste or theft.
Ignore the allowance for bad debts.
You have to prepare the cash flow statement. You can do it your way, or you can follow the steps below:
1. The total change in accounts is given in the "change" column.
2. Change in cash = Change in assets + Changes in contra-assets, liabilities, and equity. This formula is already entered for
change in cash in the ICF, FCF, and OCF columns.
3. Identify changes in accounts due to investing activities.
4. Identify changes in accounts due to financing activities.
5. Subtract changes due to investing and financing activities from the total change to arrive at changes due to operating
activities. This formula is already entered in the OCF column.
6. Use this information to prepare the cash flow statement.
7. If your computations have errors, then the check cells will not be blank.
Assets
1
2
Change
ICF
Cash
400.00 700.00
300.00
FCF OCF
0.00 0.00 300.00
Receivables [Accrued revenues]
300.00 900.00
600.00
600.00
Inventories
900.00 300.00
-600.00
####
Liabilities
Payables to suppliers
Equity
Contributed capital
Retained earnings
Check
Cash Flow Statement [YOU MAY NOT NEED ALL ROWS.]
= OCF [Indirect format]
| = ICF [Direct format]
= FCF [Direct format]
Net cash flows
700.00 400.00
-300.00
####
500.00 700.00
200.00
200.00
400.00 800.00
400.00
400.00
Effect on cash
0.00-300.00 Check
0.00
0.00
Check
Check
0.00-300.00 Check](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F99d6c510-5b8c-4c17-ac3a-87bddda960ff%2F413e516e-127d-4df5-a83d-b42942ac2c1d%2Fl3lj339_processed.png&w=3840&q=75)
Transcribed Image Text:Trendy Apparel is a clothing retailer. It has no raw-materials or work-in-process inventories.
Ignore any interest expenses and interest revenues.
No dividends were declared or paid during the year.
All changes to retained earnings occurred via the income statement.
There was no waste or theft.
Ignore the allowance for bad debts.
You have to prepare the cash flow statement. You can do it your way, or you can follow the steps below:
1. The total change in accounts is given in the "change" column.
2. Change in cash = Change in assets + Changes in contra-assets, liabilities, and equity. This formula is already entered for
change in cash in the ICF, FCF, and OCF columns.
3. Identify changes in accounts due to investing activities.
4. Identify changes in accounts due to financing activities.
5. Subtract changes due to investing and financing activities from the total change to arrive at changes due to operating
activities. This formula is already entered in the OCF column.
6. Use this information to prepare the cash flow statement.
7. If your computations have errors, then the check cells will not be blank.
Assets
1
2
Change
ICF
Cash
400.00 700.00
300.00
FCF OCF
0.00 0.00 300.00
Receivables [Accrued revenues]
300.00 900.00
600.00
600.00
Inventories
900.00 300.00
-600.00
####
Liabilities
Payables to suppliers
Equity
Contributed capital
Retained earnings
Check
Cash Flow Statement [YOU MAY NOT NEED ALL ROWS.]
= OCF [Indirect format]
| = ICF [Direct format]
= FCF [Direct format]
Net cash flows
700.00 400.00
-300.00
####
500.00 700.00
200.00
200.00
400.00 800.00
400.00
400.00
Effect on cash
0.00-300.00 Check
0.00
0.00
Check
Check
0.00-300.00 Check
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