Explanation 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. Direct method: This method uses the basis of cash for preparing the operating activities section in the statement of cash flows. In this method, the computations are carried out with each separate revenue and expense listed in the income statement. Prepare the operating activities section of the statement of cash flows for year 2 using the direct method. Company Statement of Cash Flows (Direct Method) For the year ended Particulars Amount Case A Year 2 Case B Year 2 Cash flows from Operating activities: Cash received from customers (1) $11,100 $20,850 Cash paid to suppliers (2) ($6,150) ($11,980) Cash paid for salary and wage payables (3) ($2,700) ($5,050) Net cash flows from operating activities $2,250 $3,820 Table (1) Working Notes: Determine changes in current assets and current liabilities. Schedule of changes in current assets and liabilities Particulars Amount Case A Amount Case B Year 2 Year 1 Increase/ (Decrease) Year 2 Year 1 Increase/ (Decrease) Accounts receivable $300 $400 ($100) $750 $600 $150 Inventory $750 $500 $250 $730 $800 ($70) Accounts payable $800 $700 $100 $800 $850 ($50) Salaries and wages payable $1,000 $1,200 ($200) $200 $250 ($50) Table (2) Determine the amount of cash collected from customers...

Loose Leaf For Fundamentals Of Financial Accounting

6th Edition

ISBN: 9781260159547

Author: Phillips Associate Professor, Fred, Libby, Robert, Patricia

Publisher: McGraw-Hill Education

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Chapter 12, Problem 13ME

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To prepare: the operating activities section of statement of cash flows for year 2 using the direct method of the each independent case.

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Chapter 12, Problem 12ME

Chapter 12, Problem 1E

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Chapter 12 Solutions

Loose Leaf For Fundamentals Of Financial Accounting

Ch. 12 - Compare the purposes of the income statement, the...Ch. 12 - Prob. 2Q Ch. 12 - Prob. 3Q Ch. 12 - What are the major categories of business...Ch. 12 - Prob. 5Q Ch. 12 - Describe the types of items used to compute cash...Ch. 12 - Under the indirect method, depreciation expense is...Ch. 12 - Prob. 8Q Ch. 12 - Explain why a 50,000 increase in inventory during...Ch. 12 - Prob. 10Q

Ch. 12 - As a junior analyst, you are evaluating the...Ch. 12 - Prob. 12Q Ch. 12 - Prob. 13Q Ch. 12 - Prob. 14Q Ch. 12 - (Supplement 12A) How is the sale of equipment...Ch. 12 - Prob. 1MC Ch. 12 - Prob. 2MC Ch. 12 - Prob. 3MC Ch. 12 - Prob. 4MC Ch. 12 - Which of the following would not appear in the...Ch. 12 - Prob. 6MC Ch. 12 - Prob. 7MC Ch. 12 - Prob. 8MC Ch. 12 - The total change in cash as shown near the bottom...Ch. 12 - Prob. 10MC Ch. 12 - Prob. 1ME Ch. 12 - Matching Items Reported to Cash Flow Statement...Ch. 12 - Determining the Effects of Account Changes on Cash...Ch. 12 - Computing Cash Flows from Operating Activities...Ch. 12 - Prob. 5ME Ch. 12 - Computing Cash Flows from Investing Activities...Ch. 12 - Computing Cash Flows from Financing Activities...Ch. 12 - Computing Cash Flows Under IFRS Using the data...Ch. 12 - Prob. 9ME Ch. 12 - Interpreting Cash Flows from Operating, Investing,...Ch. 12 - Matching Items Reported to Cash Flow Statement...Ch. 12 - Computing Cash Flows from Operating Activities...Ch. 12 - Prob. 13ME Ch. 12 - Matching items Reported to Cash Flow Statement...Ch. 12 - Prob. 2E Ch. 12 - Prob. 3E Ch. 12 - Prob. 4E Ch. 12 - Prob. 5E Ch. 12 - Prob. 6E Ch. 12 - Prob. 7E Ch. 12 - Prob. 8E Ch. 12 - Reporting and Interpreting Cash Flows from...Ch. 12 - Prob. 10E Ch. 12 - Prob. 11E Ch. 12 - Inferring Balance Sheet Changes from the Cash Flow...Ch. 12 - Prob. 13E Ch. 12 - Prob. 14E Ch. 12 - Prob. 15E Ch. 12 - Prob. 16E Ch. 12 - Prob. 17E Ch. 12 - Prob. 18E Ch. 12 - Prob. 19E Ch. 12 - Prob. 20E Ch. 12 - Prob. 21E Ch. 12 - Prob. 22E Ch. 12 - (Supplement 12B) Preparing a Statement of Cash...Ch. 12 - Determining Cash Flow Statement Effects of...Ch. 12 - Prob. 2CP Ch. 12 - Prob. 3CP Ch. 12 - Preparing and Interpreting a Statement of Cash...Ch. 12 - Prob. 5CP Ch. 12 - Prob. 6CP Ch. 12 - (Supplement 12A) Preparing and Interpreting a...Ch. 12 - Prob. 1PA Ch. 12 - Prob. 2PA Ch. 12 - Prob. 3PA Ch. 12 - Preparing and Interpreting a Statement of Cash...Ch. 12 - Computing Cash Flows from Operating Activities...Ch. 12 - Prob. 6PA Ch. 12 - (Supplement 12A) Preparing and Interpreting a...Ch. 12 - Prob. 1PB Ch. 12 - Prob. 2PB Ch. 12 - Prob. 3PB Ch. 12 - Preparing and Interpreting a Statement of Cash...Ch. 12 - Prob. 5PB Ch. 12 - Prob. 6PB Ch. 12 - Prob. 1SDC Ch. 12 - Prob. 2SDC Ch. 12 - Prob. 6SDC Ch. 12 - Prob. 7SDC Ch. 12 - Prob. 8SDC Ch. 12 - Prob. 9SDC Ch. 12 - Prob. 1CC

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