FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 12DQ
To determine
Cash flow statement is that statement in which, transaction related to cash are recorded. It is mandatory report and included in the financial statement of the company. It is divided into three parts operating activities, investing activity, and financial activity
(a)
To identify: Method used to calculate the cash flow from operating activities.
(b)
To determine
To identify: Reason for adding the decrease in
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What was the amount of net cash provided by operating activities for the year ended September 26, 2015? For the year ended September 27, 2014?
What was the amount of increase or decrease in cash and cash equivalents for the year ended September 26, 2015? For the year ended September 27, 2014?
Which method of computing net cash provided by operating activities does Apple use?
From your analysis of the 2015 statement of cash flows, did the change in accounts receivable require or provide cash? Did the change in inventories require or provide cash? Did the change in accounts payable require or provide cash?
What was the net outflow or inflow of cash from investing activities for the year ended September 26, 2015?
What was the amount of income taxes paid in the year ended September 26, 2015?
Refer to Apple’s statement of cash flows. (a) Which method is used to compute its net cash provided by operating activities? (b) Its balancesheet shows an increase in accounts receivable from September 24, 2016, to September 30, 2017; why is this increase in accounts receivable subtracted when computing net cash provided by operating activities for the fiscal yearended September 30, 2017?
The accounting records of MVD Sales, Inc. include the following accounts:
(Click the icon to view the accounts.)
Compute MVD's net cash provided by (used for) operating activities during July 2016. Use the indirect method. (Use parentheses or a minus sign for numbers to be
subtracted and to show net cash used for operating activities. If a box is not used in the table leave the box empty; do not select a label or enter a zero.)
MVD Sales, Inc.
Statement of Cash Flows (Partial)
For the Month Ended July 2016
Cash Flows from Operating Activities:
Net Income
Adjustments to Reconcile Net Income to Net Cash
Provided by (Used for) Operating Activities:
Net Cash Provided by (Used for) Operating Activities
Account
Cash
Accounts Receivable
Merchandise Inventory
Accounts Payable
Beginning Balance
$ 5,500
19,000
17,000
13,000
Accumulated Depreciation-
Equipment
50,000 Jul. 1
3,000 Depr. Exp.
53,000 Jul. 31
Dividends
Ending Balance
$ 3,500
15,500
21,000
17,500
Retained Earnings
20,000
65,000 Jul. 1…
Chapter 12 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
Ch. 12 - Prob. 1MCQCh. 12 - Prob. 2MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQ
Ch. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQCh. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 13DQCh. 12 - Prob. 14DQCh. 12 - Prob. 15DQCh. 12 - Prob. 1QSCh. 12 - Prob. 2QSCh. 12 - Prob. 3QSCh. 12 - Prob. 4QSCh. 12 - Prob. 5QSCh. 12 - Prob. 6QSCh. 12 - Prob. 7QSCh. 12 - Prob. 8QSCh. 12 - Prob. 9QSCh. 12 - Prob. 10QSCh. 12 - Prob. 11QSCh. 12 - Prob. 12QSCh. 12 - Prob. 13QSCh. 12 - Prob. 14QSCh. 12 - Prob. 15QSCh. 12 - Prob. 16QSCh. 12 - Prob. 17QSCh. 12 - Prob. 18QSCh. 12 - Prob. 19QSCh. 12 - Prob. 20QSCh. 12 - Prob. 21QSCh. 12 - Prob. 22QSCh. 12 - Prob. 23QSCh. 12 - Prob. 24QSCh. 12 - Prob. 25QSCh. 12 - Direct: Computing operating cash outflows P5 Refer...Ch. 12 - Prob. 27QSCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 1PSACh. 12 - Prob. 2PSACh. 12 - Prob. 3PSACh. 12 - Prob. 4PSACh. 12 - Prob. 5PSACh. 12 - Prob. 6PSACh. 12 - Prob. 7PSACh. 12 - Prob. 8PSACh. 12 - Prob. 1PSBCh. 12 - Prob. 2PSBCh. 12 - Prob. 3PSBCh. 12 - Prob. 4PSBCh. 12 - Prob. 5PSBCh. 12 - Prob. 6PSBCh. 12 - Prob. 7PSBCh. 12 - Prob. 8PSBCh. 12 - Prob. 12SPCh. 12 - Prob. 1GLPCh. 12 - Prob. 2GLPCh. 12 - Prob. 3GLPCh. 12 - Prob. 1AACh. 12 - Prob. 2AACh. 12 - Prob. 3AACh. 12 - Prob. 1BTNCh. 12 - Prob. 2BTNCh. 12 - Prob. 3BTNCh. 12 - Prob. 4BTNCh. 12 - Prob. 5BTNCh. 12 - Prob. 6BTNCh. 12 - Prob. 7BTN
Knowledge Booster
Similar questions
- Statement of Cash Flows—Direct Method Lang Company has not yet prepared a formal statement of cash flows for 2016. Following are comparative balance sheets as of December 31, 2016 and 2015, and a statement of income and retained earnings for the year ended December 31, 2016: 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.arrow_forwardMahoney Company has the following financial statements for 2017 and 2018. Assume that the purchase of equipment and the withdrawals were in the form of cash. Required Prepare a statement of cash flows for the year ended December 31, 2018. Check Figure Net cash flows from operating activities, 76,800arrow_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
- Prepare a statement of cash flows (indirect method) for the year 2018. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.arrow_forwardAlex Company prepares its statement of cash flows using the direct method for operating activities. For the year ended December 31, 2024, Alex Company reports the following: Sales on account Cash sales Decrease in accounts receivable Increase in accounts payable Increase in inventory Cost of goods sold $2100000 O $1611000 $1755000 O $1395000 O $1539000 1110000 915000 108000 72000 1575000 What amount of cash payments to suppliers will be reported by Alex Company for the year ended December 31, 2024?arrow_forwardReview the Statement of Cash Flows and UIG 1031 - Accounting for the Goods and Services Tax, particularly point 11. What is one change that needs to be made to the Statement of Cash Flows to ensure it is in compliance with the accounting standards?arrow_forward
- Presented below is the 2024 income statement and comparative balance sheet information for Tiger Enterprises. Sales revenue Operating expenses: Cost of goods sold TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2024 ($ in thousands) Depreciation expense Insurance expense General and administrative expense Total operating expenses Income before income taxes Income tax expense Net income Balance Sheet Information ($ in thousands) Assets: Cash Accounts receivable Inventory Prepaid insurance Equipment Less: Accumulated depreciation Total assets Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & administrative expense) Income taxes payable Notes payable (due 12/31/2025) Common stock Retained earnings Total liabilities and shareholders' equity $ 3,390 270 130 1,830 December 31, 2024 $ 330 780 670 65 2,250 (900) $ 3,195 $ 330 330 230 830 930 545 $ 3,195 $ 7,180 5,620 1,560 (630) $ 930 December 31, 2023 $ 230 860 630 35 1,950 (630) $…arrow_forwardCrane Company prepares its statement of cash flows using the direct method for operating activities. For the year ended December 31, 2021, Crane Company reports the following activity: Sales on account Cash sales Decrease in accounts receivable Increase in accounts payable Increase in inventory Cost of good sold $2000000 $4010000 $2910000 O $2190000 O $3100000 1100000 910000 105000 70000 1570000 What is the amount of cash collections from customers reported by Crane Company for the year ended December 31, 2021?arrow_forwardBelow are several transactions for Meyers Corporation for 2021.Required: 1. For each transaction, determine the amount of cash flows (indicate inflows with a “+” and outflows with a “−”). If cash is involved in the transaction, indicate whether Meyers should classify it as operating, investing, or financing in a statement of cash flows. Enter N/A if the question is not applicable to the statement. 2. Calculate net cash flows for the year. 3. Assuming the balance of cash on January 1, 2021, equals $5,400, calculate the balance of cash on December 31, 2021.arrow_forward
- Highlight the Net cash provided by Operating Activities for the Statement of Cash Flows Highlight the Net cash provided by Financing Activities for the Statement of Cash Flows Highlight the net change in cash for the period on the Statement of Cash Flowsarrow_forwardPrepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)arrow_forwardThe comparative balance sheets and an income statement for Fanning Corporation follow: Balance Sheets As of December 31 Year 2 Assets Cash Accounts receivable Merchandise inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Rent expense Salaries expense Other operating expenses Net income $ 83,092 31,936 Other Information 156, 192 2,415 252, 080 (151,200) 190, 830 $ 565,345 $63,438 26,483 $ Year 1 Income Statement For the Year Ended December 31, Year 2 171,810 4,830 287,650 (236, 720) 78,030 $ 369,660 FANNING 40, 640 23, 420 251,500 198,500 223,924 76,500 $ 565,345 $369,660 $1,504,000 (799,326) 704,674 71,960 22,700 (24,150) (23, 190) (254,410) (255,500) $ 147,424 1. Purchased land for $112,800. 2. Purchased new equipment for $96,100.…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College