Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 17E
a.
To determine
Prepare the statement of
b.
To determine
Provide a reasonable explanation for the cause of net
c.
To determine
Provide a reasonable explanation for the cause of net
d.
To determine
Provide a reasonable explanation for the cause of net cash outflow from financing activities.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
On December 31, 2018, Coldstone Company reported net income of $70,000 and sales of $210,000. The company also reported beginning and ending accounts receivable at $20,000 and $25,000, respectively. Coldstone will report cash collected from customers in its 2018 statement of cash flows (direct method) in the amount of:
a.$285,000
b.$215,000
c.$135,000
d.$205,000
Requirement: Prepare the statement of cash flows. Use the direct method of presenting cash flows from operating activities.
I. Problem 1: Aling Dorry's cash balance on January 1, 2017 was P20,000. The following were the transactions that affected cash during the period:
a. Collections from customers for the sale of goods, P580,000
b. Cash receipt from loan obtained from a bank, P180,000
c. Cash receipt from additional investment by owner, P20,000
d. Payments to suppliers for the purchase of inventory, P120,000
e. Payments for employees salaries, P140,000
f. Payments for rent expense, P70,000
g. Payments for utilities expense, P20,000
h. Payments for the acquisition of equipment, P200,000
i. Cash disbursements for drawings by owner, P60,000
II. State whether the following accounts is used added or deducted on the accrual basis profit. a. Depreciation expense _________________________ b. Losses on sale of PPE ________________________ c. Increase in inventory ________________________…
The accounting staff of Corny, Inc., has assembled the following information for the year ended December 31, 2011:
Using this information, prepare a statement of cash flows. Include a proper heading for the financial statement, and classify the given information into the categories of operating activities, investing activities, and financing activities. Determine net cash flows from operating activities by the direct method. Place brackets around the dollar amounts of all cash disbursements.
Chapter 1 Solutions
Survey Of Accounting
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - 4. In a business context, what does the term...Ch. 1 - 5. What market trilogy components are involved in...Ch. 1 - 6. Give an example of a financial resource, a...Ch. 1 - Prob. 7QCh. 1 - 8. How do financial and managerial accounting...Ch. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - 12. Distinguish between elements of financial...Ch. 1 - Prob. 13QCh. 1 - 14. To whom do the assets of a business belong?Ch. 1 - 15. Describe the differences between creditors and...Ch. 1 - Prob. 16QCh. 1 - Prob. 17QCh. 1 - Prob. 18QCh. 1 - 19. What does a double-entry bookkeeping system...Ch. 1 - 22. How does acquiring capital from owners affect...Ch. 1 - Prob. 21QCh. 1 - Prob. 22QCh. 1 - 25. What are the three primary sources of assets?Ch. 1 - 26. What is the source of retained earnings?Ch. 1 - 27. How does distributing assets (paying...Ch. 1 - 28. What are the similarities and differences...Ch. 1 - Prob. 27QCh. 1 - 30. Which of the general-purpose financial...Ch. 1 - 31. What causes a net loss?Ch. 1 - 35. What three categories of cash receipts and...Ch. 1 - Prob. 31QCh. 1 - 37. Discuss the term articulation as it relates to...Ch. 1 - 38. How do temporary accounts differ from...Ch. 1 - Prob. 34QCh. 1 - 41. Identify the three types of accounting...Ch. 1 - Prob. 36QCh. 1 - Prob. 37QCh. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Exercise 1-3A Identifying the reporting entities...Ch. 1 - Exercise 1-4A Define Terms and Identify Missing...Ch. 1 - Exercise 1-5 Effect of events on the accounting...Ch. 1 - Exercise 1-6 Effect of transactions on general...Ch. 1 - Exercise 1-7 Missing information and recording...Ch. 1 - Prob. 8ECh. 1 - Exercise 1-9A Record events and interpret...Ch. 1 - Exercise 1-10 Interpreting the accounting equation...Ch. 1 - Prob. 11ECh. 1 - Exercise 1-12A Differences between interest and...Ch. 1 - Exercise 1-13A Classifying events as asset source,...Ch. 1 - Prob. 14ECh. 1 - Exercise 1-15 Preparing an income statement and a...Ch. 1 - Prob. 16ECh. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Riley Company paid 60,000 cash to purchase land...Ch. 1 - Prob. 21ECh. 1 - As of January 1, 2018, Room Designs, Inc. had a...Ch. 1 - As of December 31, 2018, Flowers Company had total...Ch. 1 - Prob. 24ECh. 1 - Critz Company was started on January 1, 2018....Ch. 1 - The Candle Shop experienced the following events...Ch. 1 - Prob. 27ECh. 1 - Prob. 28PCh. 1 - Prob. 29PCh. 1 - Match the terms (identified as a through r) with...Ch. 1 - Problem 1-30A Classifying events as asset source,...Ch. 1 - Problem 1-31A Relating titles and accounts to...Ch. 1 - Marks Consulting experienced the following...Ch. 1 - Prat Corp. started the 2018 accounting period with...Ch. 1 - Maben Company was started on January 1, 2018, and...Ch. 1 - Required Use the Target Corporations Form 10-K to...Ch. 1 - ATC 1-5 Writing Assignment Elements of financial...
Knowledge Booster
Similar questions
- Mahoney Company has the following financial statements for 2017 and 2018. Assume that the purchase of equipment and the withdrawals were in the form of cash. Required Prepare a statement of cash flows for the year ended December 31, 2018. Check Figure Net cash flows from operating activities, 76,800arrow_forwardThe financial statements for Romeo and Company follow. Assume that the additional investment and the withdrawals were in the form of cash. Required Prepare a statement of cash flows for the year ended December 31, 2018. Check Figure Net cash flows from operating activities, 172,000arrow_forwardUse the following excerpts from Algona Companys financial statements to determine cash received from customers in 2018.arrow_forward
- Use the following excerpts from Brownstone Companys financial statements to determine cash received from customers in 2018.arrow_forwardHought Office Machines, Inc.'s accountants assembled the following selected data for the year ended December 31, 2018: E (Click the icon to view the current accounts.) E (Click the icon to view the transaction data.) Requirement 1. Prepare Hought Office Machines, Inc.'s statement of cash flows using the indirect method to report operating activities. List noncash investing and financing activities on an accompanying schedule. Complete the statement one section at a time, beginning with the cash flows from operating activities. (Use parentheses or a minus sign for numbers to be subtracted.) Hought Office Machines, Inc. Data Table Statement of Cash Flows Year Ended December 31, 2018 Cash flows from operating activities: Transaction Data for 2018: Net income Net income..... $ 60,000 Adjustments to reconcile net income to net cash Purchase of treasury stock. 14,300 provided by (used for) operating activities: Issuance of common stock for cash. 36,600 Loss on sale of equipment. 6,000…arrow_forwardPART A The following are extracts from the financial records of ABC Ltd for the year ended 31 August 2021. АBC Ltd Extract from the Statement of financial statement as at 31 Auqust 2021 31 August 2021 31 August 2020 - R - R Bank 50 000 20 000 Inventories - trade goods 22 000 30 000 Trade recelvables 77 00 69 D00 Trade payables 44 000 46 000 Prepaid expenses: 1 800 1 200 Accrued expenses: Interest 1 000 2 400 Accrued expenses; other 5 700 4 400 SARS - Income tax payable 8 000 3 000 Dividends payable 1 500 2 700 ABC Ltd Extract from the Statement of profit or loss and other comprehensive Income for the year ended 31 Auqust 2021 Sales 592 000 Cost of sales (301 000) Gross profit 291 000 Profit on sale of Equipment 9 000 Depreciation 41 000 Interest expense 2 600 Income tax expense 15 200 Profit for the year 110 300 Additional Information: 1. The dividends declared for the current year is R2 400.arrow_forward
- sarrow_forwardUse the following information from Coconut Company's financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018. Dec. 31, 2018 Dec. 31, 2017 Cash Accounts Receivable Inventory Prepaid Rent Accounts Payable $201,000 22,000 33,750 6,000 19,500 $175,000 21.500 30,500 2,000 28,750 Additional information: 55,000 11,500 Net income Depreciation expense HTML Editor B IUA▼A▼1 E三三 x V反 G . 三E ¶ T 12pt EPEarrow_forwardUsing the indirect method, prepare the cash flows provided by operating activities section of the statement of cash flows for 2020.(Show amounts that decrease cash flow with either a - sign, e.g. -15,000 or in parentheses, e.g. (15,000).) Mallory Michaels, senior accountant for Trendy Fashions, has gathered the following balances from the company’s general ledger: December 31, 2020 December 31, 2019 Accounts Receivable $60,000 $65,000 Inventories 120,000 117,406 Prepaid Expenses 4,500 3,900 Accounts Payable 50,378 51,000 Accrued Liabilities 12,000 14,000 Income Taxes Payable 2,700 2,500 Net Income 710,000 Depreciation Expense 65,000 Gain on the sale of land 15,000 Using the indirect method, prepare the cash flows provided by operating activities section of the statement of cash flows for 2020.(Show amounts that decrease cash flow with…arrow_forward
- Presented below is the 2024 income statement and comparative balance sheet information for Tiger Enterprises. Sales revenue Operating expenses: Cost of goods sold TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2024 ($ in thousands) Depreciation expense Insurance expense General and administrative expense Total operating expenses Income before income taxes Income tax expense Net income Balance Sheet Information ($ in thousands) Assets: Cash Accounts receivable Inventory Prepaid insurance Equipment Less: Accumulated depreciation Total assets Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & administrative expense) Income taxes payable Notes payable (due 12/31/2025) Common stock Retained earnings Total liabilities and shareholders' equity $ 3,390 270 130 1,830 December 31, 2024 $ 330 780 670 65 2,250 (900) $ 3,195 $ 330 330 230 830 930 545 $ 3,195 $ 7,180 5,620 1,560 (630) $ 930 December 31, 2023 $ 230 860 630 35 1,950 (630) $…arrow_forwardIn 2018 Calvia Corporation had cash receipts of $35,000 and cash disbursments of $20,000. Calvia's ending cash balance at December 31,2018 was $65,000. What was Calvia's beginning cash balance?arrow_forwardCoffee House Food Equipment Company had the following transactions for the month ending January 31, 2018. Coffee House's cash balance on January 1, 2018, was $9,900. A (Click the icon to view the transactions.) Prepare the statement of cash flows of Coffee House Food Equipment Company for the month ended January 31, 2018. Complete the statement one section at a time, beginning with the heading and cash flows from operating activities. (If a box is not used in the table leave the box empty; do not select a label or enter a zero. Use a minus sign parentheses for amounts that result in a decrease in cash.) Coffee House Food Equipment Company More info Cash flows from operating activities: Jan. 1 Common stock was issued to stockholders for $7.000 cash. Receipts: Purchased equipment for $1,900 on account. Jan. 7 Jan, 14 Paid $17,000 cash for land. Payments: Jan, 17 Paid cash expenses: employees' salaries, $1,400; office rent, $1,800; utilities, $100. Jan. 23 Paid cash dividends of $2.500.…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College