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
Operating Activity:
Operating activity is the first part of the cash flow statement. The main focuses of the operating activity on the
Financial Activity:
Financial activity is the part of the cash flow statement. Financial activity involves the long term liability, borrowing and
Investing Activity:
Investing activity is the third part of the cash flow statement which gives the information related to the acquisition and disposal of the long term assets of the company such as land and building, investment and plant.
To prepare: Cash flow statement

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Chapter 12 Solutions
FINANCIAL & MANAGERIAL ACCOUNTING
- Denver Co.'s relevant range of production is 10,000 to 18,000 units. When it produces and sells 15,000 units, the average cost per unit is: • Direct materials: $6.00 ⚫ Direct labor: $5.00 • Variable manufacturing overhead: $2.50 Fixed manufacturing overhead: $4.00 Fixed selling expense: $3.50 Fixed administrative expense: $2.50 Sales commissions: $1.20 Variable administrative expense: $0.80 Required: What is the total amount of period costs incurred to sell 12,000 units?arrow_forwardWhat is financial advantage? Financial accountingarrow_forwardCan you solve this financial accounting question with the appropriate financial analysis techniques?arrow_forward
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- Redwood Supplies has a beginning receivables balance on July 1 of $1,840. Sales for July through October are $945, $1,230, $1,575, and $2,120, respectively. The accounts receivable period is 30 days. What is the amount of the September collections? Assume a year has 360 days.arrow_forwardSprint Cycle Ltd. had a work-in-process inventory balance of $19,200 on July 1, representing Job No. 502. During July, $42,700 of direct materials were used for Job No. 502, and $31,600 of direct labor cost was incurred. Manufacturing overhead is allocated at 120% of direct labor cost. Actual manufacturing overhead costs incurred in July totaled $38,000. No new jobs were started in July. Job No. 502 was completed on July 30. Is manufacturing overhead overallocated or under- allocated for July, and by how much? a. $80 under-allocated b. $90 over-allocated c. $38 over-allocated d. $61 over-allocatedarrow_forwardOn October 1, the accounts receivable account balance was $93,200. During October, $278,000 was collected from customers on account. Assuming the October 31 balance was $86,500, determine the fees billed to customers on account during October. Need answerarrow_forward
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