To determine Present the operating activities section of the statement of cash flows for Company P using direct method. Explanation Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period. Operating activities: Operating activities refer to the normal activities of a company to carry out the business. The examples for operating activities are purchase of inventory, payment of salary, sales, and others. Direct method-Cash flow statement: In this method, the information from the operation segment of the company is used for the preparation of cash flow statement instead of using accrual accounting values Company P Statement of Cash Flows (Direct Method) For the year ended Particulars Amount ($) Amount ($) Cash flows from operating activities: Cash collected from customers (1) 93,500 Cash payments to suppliers of inventory (2) (56,875) Cash payments to employees (3) (10,550) Net cash provided by operating activities 26,075 Table (1) Working notes: Calculate the cash collected form customers: Cash collected from customers = Sales revenue + Decrease in accounts receivable

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ISBN: 9781260918373

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Chapter 12, Problem 21E

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Present the operating activities section of the statement of cash flows for Company P using direct method.

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Chapter 12, Problem 20E

Chapter 12, Problem 22E

Chapter 12 Solutions

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Ch. 12 - Prob. 1Q Ch. 12 - 2. What information does the statement of cash...Ch. 12 - Prob. 3Q Ch. 12 - 4. What are the major categories of business...Ch. 12 - 5. What are the typical cash inflows from...Ch. 12 - Prob. 6Q Ch. 12 - 7. Explain why cash payments during the period for...Ch. 12 - 8. Explain why a $50,000 increase in inventory...Ch. 12 - Prob. 9Q Ch. 12 - Prob. 10Q

Ch. 12 - Prob. 11Q Ch. 12 - Prob. 12Q Ch. 12 - Prob. 13Q Ch. 12 - Prob. 1MCQ Ch. 12 - Prob. 2MCQ Ch. 12 - 3. If the balance in prepaid expenses has...Ch. 12 - Prob. 4MCQ Ch. 12 - 5. Which of the following would not appear in the...Ch. 12 - Prob. 6MCQ Ch. 12 - Prob. 7MCQ Ch. 12 - 8. Consider the following: Issued common stock for...Ch. 12 - Prob. 9MCQ Ch. 12 - 10. The total change in cash as shown near the...Ch. 12 - MolsonCoors Brewing Company is the world’s fifth...Ch. 12 - Determining the Effects of Account Changes on Cash...Ch. 12 - Matching Items Reported to Cash Flow Statement...Ch. 12 - Prob. 4ME Ch. 12 - Computing Cash Flows from Investing...Ch. 12 - Computing Cash Flows from Financing...Ch. 12 - Prob. 7ME Ch. 12 - Adidas AG is a global company that designs and...Ch. 12 - Dell Technologies Inc. is an integrated IT...Ch. 12 - Woolworths Group is one of the largest retailers...Ch. 12 - Prob. 4E Ch. 12 - Prob. 5E Ch. 12 - Comparing the Direct and Indirect Methods To...Ch. 12 - E12-7 Reporting Cash Flows from Operating...Ch. 12 - E12-8 Reporting and Interpreting Cash Flows from...Ch. 12 - Time Warner Inc. is a leading media and...Ch. 12 - Reporting and Interpreting Cash Flows from...Ch. 12 - E 12-11 Inferring Balance Sheet Changes from the...Ch. 12 - Prob. 12E Ch. 12 - E12-13 (Chapter Supplement B) Computing and...Ch. 12 - During the period, Sanchez Company sold some...Ch. 12 - Prob. 15E Ch. 12 - Prob. 16E Ch. 12 - Prob. 17E Ch. 12 - Computer Service and Repair was started five years...Ch. 12 - Prob. 19E Ch. 12 - E12-20 Reporting Noncash Transactions on the...Ch. 12 - E12-21 (Chapter Supplement A) Reporting Cash Flows...Ch. 12 - E12-22 (Chapter Supplement A) Reporting and...Ch. 12 - E12-23 (Chapter Supplement A) Reporting and...Ch. 12 - Prob. 24E Ch. 12 - Prob. 1P Ch. 12 - BGP Electrical Supply is developing its annual...Ch. 12 - Prob. 3P Ch. 12 - Prob. 4P Ch. 12 - XS Supply Company is developing its annual...Ch. 12 - Prob. 6P Ch. 12 - Ingersol Construction Supply Company is developing...Ch. 12 - Prob. 2AP Ch. 12 - Prob. 3AP Ch. 12 - CON12-1 Preparing the Statement of Cash Flows...Ch. 12 - Refer to the financial statements of American...Ch. 12 - Prob. 2CP Ch. 12 - Prob. 3CP Ch. 12 - Rocky Mountain Chocolate Factory manufactures an...Ch. 12 - CP12-5 Making a Decision as a Financial Analyst:...Ch. 12 - Critical Thinking Case Ethical Decision Making: A...

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