Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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Textbook Question
Chapter 12, Problem 12.13MCP
Statement of
Lang Company has not yet prepared a formal statement of cash flows for 2016. Following are comparative
Required
- For purposes of a statement of cash flows, are the U.S. Treasury bills cash equivalents? If not, how should they be classified? Explain your answers.
- Prepare a statement of cash flows for 2016 using the direct method in the Operating Activities section.
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What is Target’s balance of cash equivalents for the fiscal year ended January 30,2016?
Classifying Items in the Statement of Cash Flows
The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement.
(a)
(b)
1. Payments of short-term debt.
AnswerOperatingInvestingFinancing
AnswerAddSubtract
2. Repurchases of common stock.
AnswerOperatingInvestingFinancing
AnswerAddSubtract
3. Purchases of property and equipment.
AnswerOperatingInvestingFinancing
AnswerAddSubtract
4. Sale of investments classified as long-term.
AnswerOperatingInvestingFinancing
AnswerAddSubtract
5. Proceeds from the issuance of common stock.
AnswerOperatingInvestingFinancing
AnswerAddSubtract
6. Increase in prepaid expenses and other current assets.
AnswerOperatingInvestingFinancing
AnswerAddSubtract
7. Acquisition for cash of a competitor.…
QUESTION
REQUIRED
Use the information provided below to prepare the Cash Flow Statement of Jonah Ltd for the year ended 31
December 2022. (Some of the figures have already been entered in the answer book.)
INFORMATION
The Statement of Comprehensive Income of Jonah Ltd for the year ended 31 December 2022 and
Statement of Financial Position as at 31 December 2021 and 2022 are as follows:
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022
Sales
Cost of sales
Gross profit
Other operating income
Gross income
Distribution expenses
Administrative expenses
Earnings before interest and tax
Interest income
Interest expense
Esmings before tax
Company tax
Earnings after interest and tax
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:
ASSETS
Non-current assets
Land and buildings
Plant and machinery
Current assets
Inventories
Accounts receivable
Total assets
EQUITY AND LIABILITIES
Equity
Ordinary share capital
Retained earnings
Non-current liabilities
Long-term borrowings…
Chapter 12 Solutions
Financial Accounting: The Impact on Decision Makers
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Preparing a Statement of Cash Flows Volusia Company reported the following comparative balance sheets for 2019: Required: Prepare a statement of cash flows for Volusia using the indirect method to compute net cash flow from operating activities.arrow_forwardUse the following excerpts from Stern Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.arrow_forwardUse the following information from Grenada Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.arrow_forward
- Use the following excerpts from Wickham Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.arrow_forwardUse the following excerpts from Yardley Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.arrow_forwardUse the following excerpts from Bolognese Companys statement of cash flows and other financial records to determine the companys free cash flow for 2018 and 2017.arrow_forward
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