119,Using the following table and the equations underlying each of the four basicbalance, (b) that net income is properly calculated, (c) what caused changes in the retained earnings account, and (d) what causedchanges in the cash account. (Cash outflows should be indicated with a minus sign.)AssetsLiabilitiesStockholders' EquityRevenueExpensesNet IncomeDividendsBeginning Retained EarningsEnding Retained EarningsCash Flows from Operating ActivitiesCash Flows from Investing ActivitiesCash Flows from Financing ActivitiesBeginning CashEnding Casha. Assets = Liabilities + Stockholders' Equity$ 18,60013,9504,65010,9009,4001,500(1,400)(1,100)4.650

The cash flow statement is a financial statement which shows the inflow and outflow of cash in the…

Using the following table and the balance, (b) that net income is properly calculated, (c) what caused changes in the retained earnings account, and (d) what caused changes in the cash account. (Cash outflows should be indicated with a minus sign.)

Using the following table and the balance, (b) that net income is properly calculated, (c) what caused changes in the retained earnings account, and (d) what caused changes in the cash account. (Cash outflows should be indicated with a minus sign.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: source

A: Decrease in accounts payable: When the current liabilities of the company decreases, it means that…

Q: hich of the following would be classified as a use of cash? a. An increase in depreciation.…

A: Depreciation is a non cash expense, hence increase or decrease of depreciation does not effect cash.

Q: Does a payment on a liability account with cash show up in the statement of cash flows?

A: Cash Flow Statement - Under Cash Flow there are three type activities involved - Operating…

Q: 26) The statement of cash flows will not report the A) uses of cash in the current period. B) amount…

A: A cash flow statement is sometimes known as a cash flow statement or a statement of cash flows. It…

Q: How does a decrease in income taxes receivables on the balance sheet, impact cash flow? What is the…

A: Step 1 The statement of cash flows is a statement that shows cash flows movements.

Q: Please answer clearly and thoroughly.1) What is the purpose of the Statement of Cash Flows? How…

A: 1.Purpose of statement of cash flows:The purpose of cash flow statement is significant as it is…

Q: The statement of cash flows reports cash receipts (inflows) and cash payments (outflows) for a…

A: Cash Flow Statement: A cash flow statement is a kind of financial statement that offers aggregate…

Q: When using the Indirect Method of preparing the Statement of Cash Flows, in the operating section,…

A: Under indirect method , it is one of two accounting treatments used to generate a cash flow…

Q: Which of the following should be deducted from net income in computing net cash flows from operating…

A: Introduction: Statement of cash flows: All cash in and out transactions in an accounting period is…

Q: If the indirect method is used, which of the following is a proper adjustment to net income to…

A: Financial statements are those reports and statements that are prepared at the end of accounting…

Q: If the balance in Prepaid Expenses increased during theyear, what action should be taken on the…

A: Increase in Prepaid Expense means that cash is paid for the future expenses in advance.

Q: Which of the following statements regarding the statement of cash flows is false?

A: A cash flow statement is an important tool used to manage finances by tracking the cash flow for an…

Q: Question: Which of the following statements best describes the accrual basis of accounting? Options:…

A: Under cash basis of accounting, revenues are recorded in books of account when cash received for…

Q: Indicate how each event affects the elements of the financial statements. Use the letter "I" to…

A: Given cash dividend $1.50 on 20000 shares Total dividend paid $30,000

Q: Question: In accounting, what does the term "accrual" refer to? a) The recognition of revenue or…

A: The accounting records the transactions using different methods as cash basis accounting or accrual…

Q: The beginning balance of the cash and cash equivalents will be deducted from the increase or…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Which of the following shows how recognizing uncollectible accounts expense under the direct…

A: Here is a detailed explanation of the correct choice: Direct Write-Off MethodThe direct write-off…

Q: The items and activities commonly associated with the purchases and cash disbursements cycle can be…

A: Purchases means all type of goods, services or assets of the business that it needs for its…

Q: Under the cash basis of accounting, revenue is recorded A. when realized. B. when earned. C.…

Q: Which is not undertaken by financial accounting? O a. Income statement O b. Customer data O C.…

A: Financial accounting deals with the economic transactions. In this, various statements are to be…

Q: The statement of cash flows reports the cash receipts, cash payments, and net change in cash…

A: Introduction: Statement of cash flows: All cash in and out flows are shown in cash flow statements.…

Q: If the Accounts Receivable balance increases during a period, how will this increase be recognized…

Q: Which of the following is used in computing cash received from customers using the direct method?…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: The cash cycle consists of which of the following periods? a. Inventory holding period and accounts…

A: The cash cycle is a critical indicator of a company's liquidity and efficiency in managing its…

Q: more than one answers is correct ( )Which of the following should NOT be added to net income in…

A: In calculation of cash flow from Operating Activities using indirect method, the following…

Q: What information would you find in a statement of cashflows that you would not be able to get from…

Q: If the indirect method is used to calculate net cash provided by operating activities, adecrease in…

A: Cash flow statement: To know the cash position in the organisation statement of cash flows is…

Q: Match the words to the definitions. Solvency Accounts Receivable Balance Sheet Noncurrent Assets…

A: The transaction of the business are recorded in the books of accounts. The financial statement…

Q: In comparing accounting net income and operating cash fl ow, name two items you typically find in…

A: In this question, we are required to determine the items which are excluded in operating cash flow…

Q: Which of the following is correct regarding cash basis of accounting? a. Sales include cash sales…

A: Under cash accounting, the incomes and expenses are recognised when they are received or paid and…

Q: b) Explain the difference between Accrual and Cash Accounting. Give an example to assist in your…

A: Under the Cash Basis of Accounting, revenue is considered only when the actual amount is received…

Q: How does the information provided in the cash flow statement explain changes in nonca

A: The cash flow statement explains changes in non-cash accounts on the balance sheet by showing the…

Q: Which of the following calculations of net income is correct? Select one: Cash receipts…

A: The objective of the question is to identify the correct formula for calculating net income in…

Q: When completing the spreadsheet to prepare the statement of cash flows, a decrease in retained…

A: Statement of cash flows is one of the financial statement of business, which shows all cash inflows…

Q: Accrual accounting recognizes revenues and expenses when cash is received or paid. True or False

A: Revenue refers to the money earned by the entity by selling goods or providing services. Expenses…

Question

119,
Using the following table and the equations underlying each of the four basic
balance, (b) that net income is properly calculated, (c) what caused changes in the retained earnings account, and (d) what caused
changes in the cash account. (Cash outflows should be indicated with a minus sign.)
Assets
Liabilities
Stockholders' Equity
Revenue
Expenses
Net Income
Dividends
Beginning Retained Earnings
Ending Retained Earnings
Cash Flows from Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities
Beginning Cash
Ending Cash
a. Assets = Liabilities + Stockholders' Equity
$ 18,600
13,950
4,650
10,900
9,400
1,500
(1,400)
(1,100)
4.650

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Solution

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

When using the Indirect Method of preparing the Statement of Cash Flows, in the operating section, some accounts are added and some costs are subtracted. If you had to explain to someone why an increase in accounts receivable is subtracted and the opposite as to why a decrease In accounts recelvable is added, what information would you relay to them? (Include in your response the concept of accruals, FASB guidelines, sales and net income on the income statement, and the balance sheet). Answer should be in a paragraph form.
In the Excel, or spreadsheet, approach to recording financial transactions, cash paid to creditors is recorded as a decrease in the Cash column and as a decrease in the Retained Earnings column.
When preparing a statement of cash flows, cash equivalents are subtracted from cash in order to calculate the net change in cash during a period. True False
Does the statement of cash flows report only transactions that cause an increase or a decrease in cash? Explain.
Perhaps the most noteworthy item reported on an income statement is net income—the amount by which revenues exceed expenses. The most noteworthy item reported on a statement of cash flows is not the amount of net cash flows. Explain.
Which of the following has a different effect on net profit than it does on cashflow? A.Cash sale to customer B.Payment for wages C.Payment for rent D.Depreciation of equipment
The primary purpose of the balance sheet is to: O measure the net income of a busniess up to a particular point in time. O report the difference between cash inflows and cash outflows for the period. O report the financial position of athe reporting entity at a particular point in time. O report revenues and expenses for a period of time. DEREN 11
Which of the following is the final step in preparing a spreadsheet (work sheet) for the statement of cash flows using the indirect method? Add the Debit and Credit Transactions columns and verify that the totals are equal. Analyze all noncash accounts and enter the net increase (decrease) in cash during the period. Add the Balance column totals, which should total to zero. After all noncash accounts have been analyzed, enter the net increase (decrease) in cash during the period.
Is it possible to have “record net income” for a quarter and negative cash flows at the same time? Be specific in your response as to how you would, or would not, be able to see this in the financial statements.
Which of the following would indicate a cash payment? a. An increase in prepaid expenses b. Selling equipment at a loss c. A decrease in inventory d. A decrease in accounts receivable