
Concept explainers
a
Consolidated statement of cash flow:consolidated entities, as with individual companies, must present a statement of cash flow when they issue a complete set of financial statements. A consolidated statement of
Cash flows statement is divided in to three parts, cash flows from operating activities, it explains source and uses of cash from ongoing regular business activity. Cash flow from financing activity showing Funds Company generated using finance in the business and, investing activity displays how much money has been used in or generated by making investments during specific time period.
Requirement 1
the computation of cash received from customers,
b
Consolidated statement of cash flow: consolidated entities, as with individual companies, must present a statement of cash flow when they issue a complete set of financial statements. A consolidated statement of cash flows is similar to a statement of cash flows prepared for an individual corporate entity and is prepared in same manner. Consolidated statement of cash flow is prepared after consolidated financial statement. Consolidated cash flow statement is prepared form the information in the three consolidated statements, when an indirect approach is used consolidated net income must be adjusted for all items that affect consolidated net income and the cash of consolidated entity effectively.
Cash flows statement is divided in to three parts, cash flows from operating activities, it explains source and uses of cash from ongoing regular business activity. Cash flow from financing activity showing Funds Company generated using finance in the business and, investing activity displays how much money has been used in or generated by making investments during specific time period.
Requirement 2
the computation of cash paid to suppliers.
c
Consolidated statement of cash flow: consolidated entities, as with individual companies, must present a statement of cash flow when they issue a complete set of financial statements. A consolidated statement of cash flows is similar to a statement of cash flows prepared for an individual corporate entity and is prepared in same manner. Consolidated statement of cash flow is prepared after consolidated financial statement. Consolidated cash flow statement is prepared form the information in the three consolidated statements, when an indirect approach is used consolidated net income must be adjusted for all items that affect consolidated net income and the cash of consolidated entity effectively.
Cash flows statement is divided in to three parts, cash flows from operating activities, it explains source and uses of cash from ongoing regular business activity. Cash flow from financing activity showing Funds Company generated using finance in the business and, investing activity displays how much money has been used in or generated by making investments during specific time period.
Requirement 3
the computation the resulting operating cash flow.

Want to see the full answer?
Check out a sample textbook solution
Chapter 10 Solutions
Advanced Financial Accounting
- What is the net income percentage?arrow_forwardNo ai answerarrow_forwardIf sales revenue is $280 million and accounts receivable decreased by $30 million, the amount of cash received from customers: a. was $280 million. b. was $310 million. c. depends on the mix of cash sales and credit sales. d. was $250 million.arrow_forward
- Not use ai solution please and accountingarrow_forwardThe following amounts have been extracted from the accounts of Sell-It at its year-end, December 31, 20x9: Sales $ 50,000 Cost of Goods Sold $ 35,000 Inventory $ 10,000 $ 8,000 Account Payable The gross profit that Sell-it would report is: a. $40,000 b. $27,000 c. $17,000 d. $60,000arrow_forwardCan you solve this financial accounting question using valid financial methods?arrow_forward
- Incredible Ices had a net income of $5,280. The firm retains 40 percent of net income. During the year, the company sold $920 in common stock. What was the cash flow to shareholders?arrow_forwardPlease provide the solution to this general accounting question using proper accounting principles.arrow_forwardPlease explain the correct approach for solving this general accounting question.arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning


