Cash flow from working exercises is the measure of cash the organization gets (inflows) from its center business of assembling and selling completed items or furnishing administrations alongside outflows, for example, installments for costs. Things incorporated into
To discuss:
Does each organization coordinate the time duties of inflows and outflow of cash well?
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- Ratio Analysis Consider the following information taken from Chicago Water Slides (CWSs) financial statements: Also, CWSs operating cash flows were $25,658 and $29,748 in 2019 and 2018, respectively. Note: Round all answers to two decimal places. Required: 1. Calculate the current ratios for 2019 and 2018. 2. Calculate the quick ratios for 2019 and 2018. 3. Calculate the cash ratios for 2019 and 2018. 4. Calculate the operating cash flow ratios for 2019 and 2018. 5. CONCEPTUAL CONNECTION Provide some reasons why CWSs liquidity may be considered to be improving and some reasons why it may be worsening.arrow_forwardUsing a Spreadsheet to Prepare a Statement of Cash Flows Fleet Limousine Service Inc. began operations in late March 2019. At the end of 2019, the following balance sheet was prepared for Fleet. Required: 1. Using a spreadsheet, prepare a statement of cash flows for 2019. Assume Fleet Limousine uses the indirect method. 2. CONCEPTUAL CONNECTION Discuss whether Fleet Limousine appeals to have matched the timing of inflows and outflows of cash.arrow_forwardRatio Analysis Intel Corporation provided the following information on its balance sheet and statement of cash flows: Required: 1. Calculate the (a) current ratio, (b) quick ratio, (c) cash ratio, and (d) operating cash flow ratio. ( Note: Round answers to two decimal places.) 2. CONCEPTUAL CONNECTION Interpret these results. 3. CONCEPTUAL CONNECTION Assume that Intel, as a requirement of one of its loans, must maintain a current ratio of at least 2.30. Given the large amount of cash, how could Intel accomplish this on December 31 (be specific as to dollar amounts)?arrow_forward
- Financial data for Otto Company follow: a. Compute the ratio of cash to monthly cash expenses. b. Interpret the results computed in (a).arrow_forwardWhat findings can you give about these FINANCIAL PROJECTIONS below. (Feasibilty Study)arrow_forward. ABC company had the following transactions during the month of April 2020. They would like you, their accountant, to prepare a cash flow statement. Before preparing the statement, you first need to determine whether the items below results in a cash inflow or outflow in the statement of cash flows. Second, you are required to determine whether the transaction is an operating, investing, or financing activity by placing an √ in the appropriate columns.arrow_forward
- Required: Solutions and explanation The beginning cash balance of Arizona Corp. is P700,000. It foresees the following cashflows for the month: (A) Collections from customers - P1,000,000, (B) Payments to suppliers - P550,000, (C) Other operating cash expenses - P50,000, (D) Payments to creditors - P50,000 and (E) collection of a receivable from an officer - P80,000. If Arizona needs to have a month-end balance of P1,000,000, how much should it borrow or (invest)? * (P130,000) P110,000 (P110,000) P130,000arrow_forwardPrepare Cash Flow from Operating Activities for the year ended 30 June 2022 for using the direct method (Hint: Please list the cashflow related to receipt from customers, payment to suppliers of inventory, and payment to suppliers of service/labor. You shall also remove depreciation expense from operation expenses in your calculation).arrow_forwardAccounting Questionarrow_forward
- Please submit financial statements for 2021 for Company Co Landscaping, including a balance sheet, income statement, and statements of cash flows (operating, investing, financing) Trial Balance For the Years Ending December 31 2020 2021 ash operating 16,914 $79,275 Cash saving 26,300 $74,314 Cash - Loan Account- - 249,019 Account Receivable 73,325 15,092 Prepaid insurance 20,719 6,561 Account Payable (33,839) (448) Prepaid expense (69,8220 (21,762) Loan Payable (256,658) (617,275) Equity 335,016 337,429 Sales (410,000) (418,841) Land lease Income (3,000) (3000) Electric 4,500 5000 Water 5,000 5000 Water Reim Exp 500 500 Office expense 4,047 4,047 Legal 12,500 12,500 Accounting 500 500 Professional Fees 35,000 35,000 Bad Debt 500 500 Cost of Good Sold 80,000 80,000 Beautification/Dumpster 10,000 10,000 Fertilizing /Grass 5,000 5,000 Road Sign 1,000 1,500 Insect Mitigation 1,000 1,000 Tree/bush trimming 2,500 2,500…arrow_forward2. From the summary cash account of X Ltd. prepare the Cash Flow Statement for the year ended 31st March, 2020 by Direct Method. CASH BOOK Dr. for the year ended March 31,2020 Cr. Particulars SAR. Particular SAR. |20,00,000 3,00,000 | By Purchased of Fixed Assets | 2,00,000 2,00,000 1,00,000 2,50,000 50,000 By Payment to Suppliers To Balance on April 1, 2019 To Issue of Equity Shares To Receipts from Customers To Sale of Fixed Assets 28,00,000 | By Overhead Expenses 1,00,000 By Wages and Salaries By Income Tax Paid By Dividend Paid By Re payment of Bank Loan 50,000 3,00,000 By Balance on March 31, 2020 1,50,000 32,50,000 |32,50,000arrow_forwardneed best help with workingarrow_forward
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