Requirement 1
Cash and cash equivalent:
Cash and cash equivalent are highly liquid, short term investments, which could be held by a company for not more than three months from the purchase date. Cash and cash equivalents are an asset; hence it is shown in the
To determine: The amount of increase or decrease in cash and cash equivalents of Company B.
Requirement – 2
Statement of
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
Cash flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.
To determine: The amount of net cash flow from operating activities, and largest reconciling item of recent year. Also determine whether there is increase or decrease in net cash flow from operating activity each year.
Requirement – 3
Statement of cash flows:
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
Cash flow from investing activities: This section of cash flows statement provides information concerning about the purchase and sale of capital assets by the company.
To determine: The amount of net cash flow from investing activities, and largest investing item of recent year. Also determine whether there is positive or negative in net cash flow from investing activity each year.
Requirement – 4
Statement of cash flows:
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
Cash flow from financing activities: This section of cash flows statement provides information about the
To determine: The amount of net cash flow from financing activities, and largest financing item of recent year. Also determine whether negative financing activities are good sign or bad sing.
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Chapter 11 Solutions
Financial Accounting
- Harbor Groceries began the current month with inventory costing $28,750, then purchased inventory at a cost of $70,560. The perpetual inventory system indicates that inventory costing $76,400 was sold during the month for $81,300. If an inventory count shows that inventory costing $21,600 is actually on hand at month-end, what amount of shrinkage occurred during the month?arrow_forwardSolve this question accountingarrow_forwardWhat is the actual total direct materials cost for the current periodarrow_forward
- Bright Electronics Corporation applies manufacturing overhead on the basis of labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $72,000. Actual manufacturing overhead for the year amounted to $70,000, and actual labor-hours were 6,400. The company's predetermined overhead rate for the year was $11.25 per labor-hour. The applied manufacturing overhead for the year was closest to:arrow_forwardEverlast Manufacturing uses a standard cost system. • Standards call for 2.5 direct labor hours per unit. The standard labor rate is $14 per hour. Four pounds of material are needed per unit at a standard cost of $2.80 per pound. . Everlast produces 12,800 units during the year. • • Direct labor costs are $460,320 for 33,100 hours. Everlast purchases 58,500 pounds of materials at $3.00 per pound and uses 54,800 pounds (the rest remain in inventory). For direct labor, what is the efficiency (usage) variance?arrow_forwardIf total assets decreased by $15,000 and stockholders' equity increased by $5,500 during a period of time, then total liabilities must have changed by what amount and direction during that same period?arrow_forward
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