Cash Flow Statement: 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 cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity. Financing Activity: Financing activity is the part of the cash flow statement. Financing activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in the financial statement. 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 by direct method.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 12, Problem 19E

To determine

Cash Flow Statement:

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 cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity.

Financing Activity:

Financing activity is the part of the cash flow statement. Financing activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in the financial statement.

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 by direct method.

Expert Solution & Answer

Explanation of Solution

Statement of cash flow.

Particulars	Amount ($)
Cash flow from operating activities:
Cash collected from customers	495,000
Cash paid to salaries	(76,500)
Cash paid for other expense	(20,000)
Cash paid for inventory	(254,500)
Net cash flow from operating activities (A)	144,000

Cash flow from investing activities:
Cash received from equipment sale	60,250
Cash paid for store equipment	(24,750)
Cash received as interest	3,500
Net cash from investing activities (B)	39,000

Cash flow from financing activities:
Cash paid to retire long term notes payable	(100,000)
Cash received in exchange for six month notes received	35,000
Cash dividends paid	(10,000)
Net cash flow from financing activities (C)	(75,000)

Net decrease in cash	108,000
Cash balance at the year end 2016	40,000
Cash balance at the year end 2017	148,000

Table (1)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

How many board feet of wood does tropic need to purchase in February ?

I am trying to find the accurate solution to this general accounting problem with appropriate explanations.

Kyle had a gross weekly paycheck of $912 last week. Kyle worked 6 hours for 4 of the days and 8 hours on 1 day. What is Kyle's hourly rate of pay? Help with this question

Answer 2

Question

Chapter 12, Problem 19E

To determine

Cash Flow Statement:

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 cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity.

Financing Activity:

Financing activity is the part of the cash flow statement. Financing activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in the financial statement.

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 by direct method.

Expert Solution & Answer

Explanation of Solution

Statement of cash flow.

Particulars	Amount ($)
Cash flow from operating activities:
Cash collected from customers	495,000
Cash paid to salaries	(76,500)
Cash paid for other expense	(20,000)
Cash paid for inventory	(254,500)
Net cash flow from operating activities (A)	144,000

Cash flow from investing activities:
Cash received from equipment sale	60,250
Cash paid for store equipment	(24,750)
Cash received as interest	3,500
Net cash from investing activities (B)	39,000

Cash flow from financing activities:
Cash paid to retire long term notes payable	(100,000)
Cash received in exchange for six month notes received	35,000
Cash dividends paid	(10,000)
Net cash flow from financing activities (C)	(75,000)

Net decrease in cash	108,000
Cash balance at the year end 2016	40,000
Cash balance at the year end 2017	148,000

Table (1)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 12, Problem 19E

To determine

Cash Flow Statement:

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 cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity.

Financing Activity:

Financing activity is the part of the cash flow statement. Financing activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in the financial statement.

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 by direct method.

Expert Solution & Answer

Explanation of Solution

Statement of cash flow.

Particulars	Amount ($)
Cash flow from operating activities:
Cash collected from customers	495,000
Cash paid to salaries	(76,500)
Cash paid for other expense	(20,000)
Cash paid for inventory	(254,500)
Net cash flow from operating activities (A)	144,000

Cash flow from investing activities:
Cash received from equipment sale	60,250
Cash paid for store equipment	(24,750)
Cash received as interest	3,500
Net cash from investing activities (B)	39,000

Cash flow from financing activities:
Cash paid to retire long term notes payable	(100,000)
Cash received in exchange for six month notes received	35,000
Cash dividends paid	(10,000)
Net cash flow from financing activities (C)	(75,000)

Net decrease in cash	108,000
Cash balance at the year end 2016	40,000
Cash balance at the year end 2017	148,000

Table (1)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 12, Problem 19E

To determine

Cash Flow Statement:

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 cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity.

Financing Activity:

Financing activity is the part of the cash flow statement. Financing activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in the financial statement.

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 by direct method.

Expert Solution & Answer

Explanation of Solution

Statement of cash flow.

Particulars	Amount ($)
Cash flow from operating activities:
Cash collected from customers	495,000
Cash paid to salaries	(76,500)
Cash paid for other expense	(20,000)
Cash paid for inventory	(254,500)
Net cash flow from operating activities (A)	144,000

Cash flow from investing activities:
Cash received from equipment sale	60,250
Cash paid for store equipment	(24,750)
Cash received as interest	3,500
Net cash from investing activities (B)	39,000

Cash flow from financing activities:
Cash paid to retire long term notes payable	(100,000)
Cash received in exchange for six month notes received	35,000
Cash dividends paid	(10,000)
Net cash flow from financing activities (C)	(75,000)

Net decrease in cash	108,000
Cash balance at the year end 2016	40,000
Cash balance at the year end 2017	148,000

Table (1)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 12, Problem 19E

To determine

Cash Flow Statement:

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 cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity.

Financing Activity:

Financing activity is the part of the cash flow statement. Financing activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in the financial statement.

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 by direct method.

Expert Solution & Answer

Explanation of Solution

Statement of cash flow.

Particulars	Amount ($)
Cash flow from operating activities:
Cash collected from customers	495,000
Cash paid to salaries	(76,500)
Cash paid for other expense	(20,000)
Cash paid for inventory	(254,500)
Net cash flow from operating activities (A)	144,000

Cash flow from investing activities:
Cash received from equipment sale	60,250
Cash paid for store equipment	(24,750)
Cash received as interest	3,500
Net cash from investing activities (B)	39,000

Cash flow from financing activities:
Cash paid to retire long term notes payable	(100,000)
Cash received in exchange for six month notes received	35,000
Cash dividends paid	(10,000)
Net cash flow from financing activities (C)	(75,000)

Net decrease in cash	108,000
Cash balance at the year end 2016	40,000
Cash balance at the year end 2017	148,000

Table (1)

Answer 6

Chapter 12, Problem 19E

To determine

Cash Flow Statement:

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 cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity.

Financing Activity:

Financing activity is the part of the cash flow statement. Financing activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in the financial statement.

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 by direct method.

Expert Solution & Answer

Explanation of Solution

Statement of cash flow.

Particulars	Amount ($)
Cash flow from operating activities:
Cash collected from customers	495,000
Cash paid to salaries	(76,500)
Cash paid for other expense	(20,000)
Cash paid for inventory	(254,500)
Net cash flow from operating activities (A)	144,000

Cash flow from investing activities:
Cash received from equipment sale	60,250
Cash paid for store equipment	(24,750)
Cash received as interest	3,500
Net cash from investing activities (B)	39,000

Cash flow from financing activities:
Cash paid to retire long term notes payable	(100,000)
Cash received in exchange for six month notes received	35,000
Cash dividends paid	(10,000)
Net cash flow from financing activities (C)	(75,000)

Net decrease in cash	108,000
Cash balance at the year end 2016	40,000
Cash balance at the year end 2017	148,000

Table (1)

Answer 7

Chapter 12, Problem 19E

To determine

Cash Flow Statement:

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 cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity.

Financing Activity:

Financing activity is the part of the cash flow statement. Financing activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in the financial statement.

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 by direct method.

Answer 8

Expert Solution & Answer

Explanation of Solution

Statement of cash flow.

Particulars	Amount ($)
Cash flow from operating activities:
Cash collected from customers	495,000
Cash paid to salaries	(76,500)
Cash paid for other expense	(20,000)
Cash paid for inventory	(254,500)
Net cash flow from operating activities (A)	144,000

Cash flow from investing activities:
Cash received from equipment sale	60,250
Cash paid for store equipment	(24,750)
Cash received as interest	3,500
Net cash from investing activities (B)	39,000

Cash flow from financing activities:
Cash paid to retire long term notes payable	(100,000)
Cash received in exchange for six month notes received	35,000
Cash dividends paid	(10,000)
Net cash flow from financing activities (C)	(75,000)

Net decrease in cash	108,000
Cash balance at the year end 2016	40,000
Cash balance at the year end 2017	148,000