(a) Introduction: Cash from operating activities more often than not alludes to the main segment of the announcement of cash streams. Cash from operating activities centers around the cash inflows and surges from an organization’s fundamental business activities of purchasing and selling stock, giving administrations, and so on. To choose: Prepare a statement of cash flow (indirect method) for Beckwith Product for 2019.

Question

Use the comparative balance sheet and the additional information provided to prepare a cash flow statement for Yannik Inc for the year ended 12/31/2021. Cash Accounts receivable (net) Inventory Equipment Accumulated depreciation TOTAL Accounts payable Notes payable - Long-term Common stock Retained earnings TOTAL Notes 2021 900,000 600,000 900,000 1,500,000 (600,000) 3,200,000 650,000 700,000 1,200,000 750,000 3,200,000 2020 700,000 500,000 750,000 1,200,000 (500,000) 2,650,000 400,000 800,000 1,000,000 450,000 2,650,000 1. Net income was $400,000. 2. Net income include a loss on sale of equipment equal to $20,000. The equipment had a book value of $80,000 at the time of sale. 3. Depreciation for the year was $100,000 4. Dividends of 100,000 have been declared and paid. 5. Increases or decreases in Equipment, Common Stock or Notes Payable refers to relevant purchases, issuances sales or retirements.

Answer 1

Question

Chapter 11, Problem 47E

To determine

(a)

Introduction:

Cash from operating activities more often than not alludes to the main segment of the announcement of cash streams. Cash from operating activities centers around the cash inflows and surges from an organization’s fundamental business activities of purchasing and selling stock, giving administrations, and so on.

To choose:

Prepare a statement of cash flow (indirect method) for Beckwith Product for 2019.

To determine

(b)

Introduction:

A company’s free cash how represents the cash flow that a company is able generate after considering the maintenance or expansion of its assets (capital expenditure) and the payment of dividends. Having positive free cash flow allows a company to pursuer profit-generating opportunities. However, negative free cash flow is not a necessarily a bad thing.

Cash flow adequacy Ratio: a second useful measure is the cash flow adequacy ratio. The cash adequacy ratio provides a measure of the company’s ability to meet its maturing debt obligation with its operating cash flow.

To choose:

Compute the following cash-based performance measure

Free cash flow

Cash flow adequacy

To determine

(c)

Introduction:

A company’s free cash how represents the cash flow that a company is able generate after considering the maintenance or expansion of its assets (capital expenditure) and the payment of dividends. Having positive free cash flow allows a company to pursuer profit-generating opportunities. However, negative free cash flow is not a necessarily a bad thing.

Cash flow adequacy Ratio: a second useful measure is the cash flow adequacy ratio. The cash adequacy ratio provides a measure of the company’s ability to meet its maturing debt obligation with its operating cash flow.

To choose:

What can you conclude by examining the patterns in Beckwith’s cash flow?

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Use the comparative balance sheet and the additional information provided to prepare a cash flow statement for Yannik Inc for the year ended 12/31/2021. Cash Accounts receivable (net) Inventory Equipment Accumulated depreciation TOTAL Accounts payable Notes payable - Long-term Common stock Retained earnings TOTAL Notes 2021 900,000 600,000 900,000 1,500,000 (600,000) 3,200,000 650,000 700,000 1,200,000 750,000 3,200,000 2020 700,000 500,000 750,000 1,200,000 (500,000) 2,650,000 400,000 800,000 1,000,000 450,000 2,650,000 1. Net income was $400,000. 2. Net income include a loss on sale of equipment equal to $20,000. The equipment had a book value of $80,000 at the time of sale. 3. Depreciation for the year was $100,000 4. Dividends of 100,000 have been declared and paid. 5. Increases or decreases in Equipment, Common Stock or Notes Payable refers to relevant purchases, issuances sales or retirements.

Use the following information from Dubuque Company’s financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.

Prepare the “Statement of Cash Flows” of Laris Corporation for 2019, by using the financial statements below.

Answer 2

Question

Chapter 11, Problem 47E

To determine

(a)

Introduction:

Cash from operating activities more often than not alludes to the main segment of the announcement of cash streams. Cash from operating activities centers around the cash inflows and surges from an organization’s fundamental business activities of purchasing and selling stock, giving administrations, and so on.

To choose:

Prepare a statement of cash flow (indirect method) for Beckwith Product for 2019.

To determine

(b)

Introduction:

A company’s free cash how represents the cash flow that a company is able generate after considering the maintenance or expansion of its assets (capital expenditure) and the payment of dividends. Having positive free cash flow allows a company to pursuer profit-generating opportunities. However, negative free cash flow is not a necessarily a bad thing.

Cash flow adequacy Ratio: a second useful measure is the cash flow adequacy ratio. The cash adequacy ratio provides a measure of the company’s ability to meet its maturing debt obligation with its operating cash flow.

To choose:

Compute the following cash-based performance measure

Free cash flow

Cash flow adequacy

To determine

(c)

Introduction:

A company’s free cash how represents the cash flow that a company is able generate after considering the maintenance or expansion of its assets (capital expenditure) and the payment of dividends. Having positive free cash flow allows a company to pursuer profit-generating opportunities. However, negative free cash flow is not a necessarily a bad thing.

Cash flow adequacy Ratio: a second useful measure is the cash flow adequacy ratio. The cash adequacy ratio provides a measure of the company’s ability to meet its maturing debt obligation with its operating cash flow.

To choose:

What can you conclude by examining the patterns in Beckwith’s cash flow?

Expert Solution & Answer

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Answer 3

Question

Chapter 11, Problem 47E

To determine

(a)

Introduction:

Cash from operating activities more often than not alludes to the main segment of the announcement of cash streams. Cash from operating activities centers around the cash inflows and surges from an organization’s fundamental business activities of purchasing and selling stock, giving administrations, and so on.

To choose:

Prepare a statement of cash flow (indirect method) for Beckwith Product for 2019.

To determine

(b)

Introduction:

A company’s free cash how represents the cash flow that a company is able generate after considering the maintenance or expansion of its assets (capital expenditure) and the payment of dividends. Having positive free cash flow allows a company to pursuer profit-generating opportunities. However, negative free cash flow is not a necessarily a bad thing.

Cash flow adequacy Ratio: a second useful measure is the cash flow adequacy ratio. The cash adequacy ratio provides a measure of the company’s ability to meet its maturing debt obligation with its operating cash flow.

To choose:

Compute the following cash-based performance measure

Free cash flow

Cash flow adequacy

To determine

(c)

Introduction:

A company’s free cash how represents the cash flow that a company is able generate after considering the maintenance or expansion of its assets (capital expenditure) and the payment of dividends. Having positive free cash flow allows a company to pursuer profit-generating opportunities. However, negative free cash flow is not a necessarily a bad thing.

Cash flow adequacy Ratio: a second useful measure is the cash flow adequacy ratio. The cash adequacy ratio provides a measure of the company’s ability to meet its maturing debt obligation with its operating cash flow.

To choose:

What can you conclude by examining the patterns in Beckwith’s cash flow?

Expert Solution & Answer

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Answer 4

Question

Chapter 11, Problem 47E

To determine

(a)

Introduction:

Cash from operating activities more often than not alludes to the main segment of the announcement of cash streams. Cash from operating activities centers around the cash inflows and surges from an organization’s fundamental business activities of purchasing and selling stock, giving administrations, and so on.

To choose:

Prepare a statement of cash flow (indirect method) for Beckwith Product for 2019.

To determine

(b)

Introduction:

A company’s free cash how represents the cash flow that a company is able generate after considering the maintenance or expansion of its assets (capital expenditure) and the payment of dividends. Having positive free cash flow allows a company to pursuer profit-generating opportunities. However, negative free cash flow is not a necessarily a bad thing.

Cash flow adequacy Ratio: a second useful measure is the cash flow adequacy ratio. The cash adequacy ratio provides a measure of the company’s ability to meet its maturing debt obligation with its operating cash flow.

To choose:

Compute the following cash-based performance measure

Free cash flow

Cash flow adequacy

To determine

(c)

Introduction:

A company’s free cash how represents the cash flow that a company is able generate after considering the maintenance or expansion of its assets (capital expenditure) and the payment of dividends. Having positive free cash flow allows a company to pursuer profit-generating opportunities. However, negative free cash flow is not a necessarily a bad thing.

Cash flow adequacy Ratio: a second useful measure is the cash flow adequacy ratio. The cash adequacy ratio provides a measure of the company’s ability to meet its maturing debt obligation with its operating cash flow.

To choose:

What can you conclude by examining the patterns in Beckwith’s cash flow?

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 47E

To determine

(a)

Introduction:

Cash from operating activities more often than not alludes to the main segment of the announcement of cash streams. Cash from operating activities centers around the cash inflows and surges from an organization’s fundamental business activities of purchasing and selling stock, giving administrations, and so on.

To choose:

Prepare a statement of cash flow (indirect method) for Beckwith Product for 2019.

To determine

(b)

Introduction:

A company’s free cash how represents the cash flow that a company is able generate after considering the maintenance or expansion of its assets (capital expenditure) and the payment of dividends. Having positive free cash flow allows a company to pursuer profit-generating opportunities. However, negative free cash flow is not a necessarily a bad thing.

Cash flow adequacy Ratio: a second useful measure is the cash flow adequacy ratio. The cash adequacy ratio provides a measure of the company’s ability to meet its maturing debt obligation with its operating cash flow.

To choose:

Compute the following cash-based performance measure

Free cash flow

Cash flow adequacy

To determine

(c)

Introduction:

A company’s free cash how represents the cash flow that a company is able generate after considering the maintenance or expansion of its assets (capital expenditure) and the payment of dividends. Having positive free cash flow allows a company to pursuer profit-generating opportunities. However, negative free cash flow is not a necessarily a bad thing.

Cash flow adequacy Ratio: a second useful measure is the cash flow adequacy ratio. The cash adequacy ratio provides a measure of the company’s ability to meet its maturing debt obligation with its operating cash flow.

To choose:

What can you conclude by examining the patterns in Beckwith’s cash flow?

Answer 6

Chapter 11, Problem 47E

To determine

(a)

Introduction:

Cash from operating activities more often than not alludes to the main segment of the announcement of cash streams. Cash from operating activities centers around the cash inflows and surges from an organization’s fundamental business activities of purchasing and selling stock, giving administrations, and so on.

To choose:

Prepare a statement of cash flow (indirect method) for Beckwith Product for 2019.

Answer 7

Chapter 11, Problem 47E

To determine

(a)

Introduction:

Cash from operating activities more often than not alludes to the main segment of the announcement of cash streams. Cash from operating activities centers around the cash inflows and surges from an organization’s fundamental business activities of purchasing and selling stock, giving administrations, and so on.

To choose:

Prepare a statement of cash flow (indirect method) for Beckwith Product for 2019.

Answer 8

To determine

(b)

Introduction:

A company’s free cash how represents the cash flow that a company is able generate after considering the maintenance or expansion of its assets (capital expenditure) and the payment of dividends. Having positive free cash flow allows a company to pursuer profit-generating opportunities. However, negative free cash flow is not a necessarily a bad thing.

Cash flow adequacy Ratio: a second useful measure is the cash flow adequacy ratio. The cash adequacy ratio provides a measure of the company’s ability to meet its maturing debt obligation with its operating cash flow.

To choose:

Compute the following cash-based performance measure

Free cash flow

Cash flow adequacy

Answer 9

To determine

(b)

Introduction:

A company’s free cash how represents the cash flow that a company is able generate after considering the maintenance or expansion of its assets (capital expenditure) and the payment of dividends. Having positive free cash flow allows a company to pursuer profit-generating opportunities. However, negative free cash flow is not a necessarily a bad thing.

Cash flow adequacy Ratio: a second useful measure is the cash flow adequacy ratio. The cash adequacy ratio provides a measure of the company’s ability to meet its maturing debt obligation with its operating cash flow.

To choose:

Compute the following cash-based performance measure

Free cash flow

Cash flow adequacy

Answer 10

To determine

(c)

Introduction:

A company’s free cash how represents the cash flow that a company is able generate after considering the maintenance or expansion of its assets (capital expenditure) and the payment of dividends. Having positive free cash flow allows a company to pursuer profit-generating opportunities. However, negative free cash flow is not a necessarily a bad thing.

Cash flow adequacy Ratio: a second useful measure is the cash flow adequacy ratio. The cash adequacy ratio provides a measure of the company’s ability to meet its maturing debt obligation with its operating cash flow.

To choose:

What can you conclude by examining the patterns in Beckwith’s cash flow?

Answer 11

To determine

(c)

Introduction:

A company’s free cash how represents the cash flow that a company is able generate after considering the maintenance or expansion of its assets (capital expenditure) and the payment of dividends. Having positive free cash flow allows a company to pursuer profit-generating opportunities. However, negative free cash flow is not a necessarily a bad thing.

Cash flow adequacy Ratio: a second useful measure is the cash flow adequacy ratio. The cash adequacy ratio provides a measure of the company’s ability to meet its maturing debt obligation with its operating cash flow.

To choose:

What can you conclude by examining the patterns in Beckwith’s cash flow?

Answer 12

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