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 flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company. Indirect method: Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities . Deduct increase in current assets. Deduct decrease in current liabilities. Add decrease in current assets. Add the increase in current liability. Add depreciation expense and amortization expense. Add loss on sale of plant assets. Less gain on sale of plant assets. To determine: the amount of net cash provided by operating activities of Incorporation A.

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Answer 1

Question

Chapter 12, Problem 12.1EYCT

(a)

To determine

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 flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.

Indirect method: Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

Deduct increase in current assets.

Deduct decrease in current liabilities.

Add decrease in current assets.

Add the increase in current liability.

Add depreciation expense and amortization expense.

Add loss on sale of plant assets.

Less gain on sale of plant assets.

To determine: the amount of net cash provided by operating activities of Incorporation A.

(b)

To determine

the amount of amount of increase or decrease in cash and cash equivalents of Incorporation A.

(c)

To determine

the method of computing net cash provided by operating activities of Incorporation A.

(d)

To determine

the amount of increase or decrease in Accounts receivable, inventory and accounts payable.

(e)

To determine

the amount of net cash used by investing activities of Incorporation A.

(f)

To determine

the amount of interest paid and amount of income taxes paid of Incorporation A.

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Question 1181 28 Current Attempt in Progress Here are comparative balance sheets for Migitsu Company. Prepare a statement of cash flows-indirect method. MIGITSU COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $73,000 $22,000 Accounts receivable 87,000 76.000 Inventory 170,000 191.000 Land 72,000 100.000 Equipment 260,000 200.000 Accumulated depreciation - equipment (66,000) (32.000) Total $596,000 $557,000 Liabilities and Stockholders' Equity Accounts payable $37,000 $47.000 Bonds payable 150,000 210,000 Common stock ($1 par) 216.000 174,000 Retained earnings 193,000 126.000 Total $596,000 $557,000 Additional information: 1 Net income for 2020 was $100,000. N Cash dividends of $33,000 were declared and paid. 3. Bonds payable amounting to $60,000 were redeemed for cash $60,000. -18 4. Common stock was issued for $42,000 cash. 5. Equipment that cost $50,000 and had a book value of $30,000 was sold for $36,000 during 2020; land was sold at cost.

Answer 2

Question

Chapter 12, Problem 12.1EYCT

(a)

To determine

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 flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.

Indirect method: Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

Deduct increase in current assets.

Deduct decrease in current liabilities.

Add decrease in current assets.

Add the increase in current liability.

Add depreciation expense and amortization expense.

Add loss on sale of plant assets.

Less gain on sale of plant assets.

To determine: the amount of net cash provided by operating activities of Incorporation A.

(b)

To determine

the amount of amount of increase or decrease in cash and cash equivalents of Incorporation A.

(c)

To determine

the method of computing net cash provided by operating activities of Incorporation A.

(d)

To determine

the amount of increase or decrease in Accounts receivable, inventory and accounts payable.

(e)

To determine

the amount of net cash used by investing activities of Incorporation A.

(f)

To determine

the amount of interest paid and amount of income taxes paid of Incorporation A.

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Answer 3

Question

Chapter 12, Problem 12.1EYCT

(a)

To determine

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 flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.

Indirect method: Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

Deduct increase in current assets.

Deduct decrease in current liabilities.

Add decrease in current assets.

Add the increase in current liability.

Add depreciation expense and amortization expense.

Add loss on sale of plant assets.

Less gain on sale of plant assets.

To determine: the amount of net cash provided by operating activities of Incorporation A.

(b)

To determine

the amount of amount of increase or decrease in cash and cash equivalents of Incorporation A.

(c)

To determine

the method of computing net cash provided by operating activities of Incorporation A.

(d)

To determine

the amount of increase or decrease in Accounts receivable, inventory and accounts payable.

(e)

To determine

the amount of net cash used by investing activities of Incorporation A.

(f)

To determine

the amount of interest paid and amount of income taxes paid of Incorporation A.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 12.1EYCT

(a)

To determine

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 flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.

Indirect method: Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

Deduct increase in current assets.

Deduct decrease in current liabilities.

Add decrease in current assets.

Add the increase in current liability.

Add depreciation expense and amortization expense.

Add loss on sale of plant assets.

Less gain on sale of plant assets.

To determine: the amount of net cash provided by operating activities of Incorporation A.

(b)

To determine

the amount of amount of increase or decrease in cash and cash equivalents of Incorporation A.

(c)

To determine

the method of computing net cash provided by operating activities of Incorporation A.

(d)

To determine

the amount of increase or decrease in Accounts receivable, inventory and accounts payable.

(e)

To determine

the amount of net cash used by investing activities of Incorporation A.

(f)

To determine

the amount of interest paid and amount of income taxes paid of Incorporation A.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 12.1EYCT

(a)

To determine

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 flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.

Indirect method: Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

Deduct increase in current assets.

Deduct decrease in current liabilities.

Add decrease in current assets.

Add the increase in current liability.

Add depreciation expense and amortization expense.

Add loss on sale of plant assets.

Less gain on sale of plant assets.

To determine: the amount of net cash provided by operating activities of Incorporation A.

(b)

To determine

the amount of amount of increase or decrease in cash and cash equivalents of Incorporation A.

(c)

To determine

the method of computing net cash provided by operating activities of Incorporation A.

(d)

To determine

the amount of increase or decrease in Accounts receivable, inventory and accounts payable.

(e)

To determine

the amount of net cash used by investing activities of Incorporation A.

(f)

To determine

the amount of interest paid and amount of income taxes paid of Incorporation A.

Answer 6

Chapter 12, Problem 12.1EYCT

(a)

To determine

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 flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.

Indirect method: Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

Deduct increase in current assets.

Deduct decrease in current liabilities.

Add decrease in current assets.

Add the increase in current liability.

Add depreciation expense and amortization expense.

Add loss on sale of plant assets.

Less gain on sale of plant assets.

To determine: the amount of net cash provided by operating activities of Incorporation A.

Answer 7

Chapter 12, Problem 12.1EYCT

(a)

To determine

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 flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.

Indirect method: Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

Deduct increase in current assets.

Deduct decrease in current liabilities.

Add decrease in current assets.

Add the increase in current liability.

Add depreciation expense and amortization expense.

Add loss on sale of plant assets.

Less gain on sale of plant assets.

To determine: the amount of net cash provided by operating activities of Incorporation A.

Answer 8

(b)

To determine

the amount of amount of increase or decrease in cash and cash equivalents of Incorporation A.

Answer 9

(b)

To determine

the amount of amount of increase or decrease in cash and cash equivalents of Incorporation A.

Answer 10

(c)

To determine

the method of computing net cash provided by operating activities of Incorporation A.

Answer 11

(c)

To determine

the method of computing net cash provided by operating activities of Incorporation A.

Answer 12

(d)

To determine

the amount of increase or decrease in Accounts receivable, inventory and accounts payable.

Answer 13

(d)

To determine

the amount of increase or decrease in Accounts receivable, inventory and accounts payable.

Answer 14

(e)

To determine

the amount of net cash used by investing activities of Incorporation A.

Answer 15

(e)

To determine

the amount of net cash used by investing activities of Incorporation A.

Answer 16

(f)

To determine

the amount of interest paid and amount of income taxes paid of Incorporation A.

Answer 17

(f)

To determine

the amount of interest paid and amount of income taxes paid of Incorporation A.

Answer 18

Expert Solution & Answer

Answer 19

Expert Solution & Answer

Answer 20

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Answer 21

Ch. 12 - Prob. 1Q Ch. 12 - Prob. 2Q Ch. 12 - Prob. 3Q Ch. 12 - Prob. 4Q Ch. 12 - Prob. 5Q Ch. 12 - Prob. 6Q Ch. 12 - Why is it necessary to use comparative balance...Ch. 12 - Prob. 8Q Ch. 12 - Prob. 9Q Ch. 12 - Prob. 10Q

Solution Summary: The author explains how Incorporation A uses the "Indirect method" for computing the net cash provided by operating activities.

the amount of amount of increase or decrease in cash and cash equivalents of Incorporation A.

the method of computing net cash provided by operating activities of Incorporation A.

the amount of increase or decrease in Accounts receivable, inventory and accounts payable.

the amount of net cash used by investing activities of Incorporation A.

the amount of interest paid and amount of income taxes paid of Incorporation A.

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Chapter 12 Solutions