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 cash flows of statement. To state: the formula used under direct method for computing cash receipts from customers.

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Answer 1

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Chapter 12, Problem 20Q

(a)

To determine

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 cash flows of statement.

To state: the formula used under direct method for computing cash receipts from customers.

(b)

To determine

To state: the formulas used under direct method for computing cash payments made to suppliers.

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P11-11A (LO2/3)zibnsdɔ PURCHASES AND CASH PAYMENTS TRANSACTIONS Emily Frank owns a small Cash balance: $10,284ping 92do retail business called Frank's Fantasy. The cash account has a balance of $21,000 on July 1. The following transactions occurred during July: Invoice mozib she of a July 1 bonsquoozib ads midiw no 105mg ads bas SI anul no red Issued Check No. 414 in payment of July rent, $2,500. 23101 Purchased merchandise on account from Tilly's Toys, Invoice No. 311, o T gnieU 20 3 5 Alano to 192 2018 008 11 beandbrug ei,000 to ozishat ibm $2,800, terms 2/10, n/30. 13 amist jib diw page of a gen Purchased merchandise on account from Scheer & Company, Invoice No. 812, $3,300, terms 1/10, n/30. (SO) 88- Returned merchandise purchased from Tilly's Toys, receiving a credit memo on the amount owed, $300. A bas Purchased merchandise on account from Donna's Dolls, Invoice No. 139, $2,900, terms 2/10, n/30. , Issued Check No. 415 to Tilly's Toys for merchandise purchased on account, less…

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Answer 2

Question

Chapter 12, Problem 20Q

(a)

To determine

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 cash flows of statement.

To state: the formula used under direct method for computing cash receipts from customers.

(b)

To determine

To state: the formulas used under direct method for computing cash payments made to suppliers.

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Answer 3

Question

Chapter 12, Problem 20Q

(a)

To determine

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 cash flows of statement.

To state: the formula used under direct method for computing cash receipts from customers.

(b)

To determine

To state: the formulas used under direct method for computing cash payments made to suppliers.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 20Q

(a)

To determine

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 cash flows of statement.

To state: the formula used under direct method for computing cash receipts from customers.

(b)

To determine

To state: the formulas used under direct method for computing cash payments made to suppliers.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 20Q

(a)

To determine

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 cash flows of statement.

To state: the formula used under direct method for computing cash receipts from customers.

(b)

To determine

To state: the formulas used under direct method for computing cash payments made to suppliers.

Answer 6

Chapter 12, Problem 20Q

(a)

To determine

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 cash flows of statement.

To state: the formula used under direct method for computing cash receipts from customers.

Answer 7

Chapter 12, Problem 20Q

(a)

To determine

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 cash flows of statement.

To state: the formula used under direct method for computing cash receipts from customers.

Answer 8

(b)

To determine

To state: the formulas used under direct method for computing cash payments made to suppliers.

Answer 9

(b)

To determine

To state: the formulas used under direct method for computing cash payments made to suppliers.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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 states the formulas used under direct method for computing cash receipts from customers.

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