Financial Accounting, 8th Edition
8th Edition
ISBN: 9780078025556
Author: Robert Libby, Patricia Libby, Daniel Short
Publisher: McGraw-Hill Education
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Chapter 12, Problem 4CP
To determine
Prepare the statement of
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Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:
Ending Balance
Beginning Balance
Cash and cash equivalents
$
102,000
$
122,400
Accounts receivable
81,700
88,000
Inventory
109,700
100,000
Total current assets
293,400
310,400
Property, plant, and equipment
291,000
280,000
Less accumulated depreciation
97,000
70,000
Net property, plant, and equipment
194,000
210,000
Total assets
$
487,400
$
520,400
Accounts payable
$
64,000
$
113,700
Income taxes payable
49,700
65,700
Bonds payable
120,000
100,000
Common stock
140,000
120,000
Retained earnings
113,700
121,000
Total liabilities and stockholders’ equity
$
487,400
$
520,400…
Required information
Skip to question
[The following information applies to the questions displayed below.]
Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:
Ending Balance
Beginning Balance
Cash and cash equivalents
$
102,000
$
122,400
Accounts receivable
81,700
88,000
Inventory
109,700
100,000
Total current assets
293,400
310,400
Property, plant, and equipment
291,000
280,000
Less accumulated depreciation
97,000
70,000
Net property, plant, and equipment
194,000
210,000
Total assets
$
487,400
$
520,400
Accounts payable
$
64,000
$
113,700
Income taxes payable
49,700
65,700
Bonds payable
120,000
100,000
Common stock
140,000
120,000
Retained earnings
113,700
121,000
Total liabilities and stockholders’ equity
$
487,400
$
520,400…
Required information
Skip to question
[The following information applies to the questions displayed below.]
Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:
Ending Balance
Beginning Balance
Cash and cash equivalents
$
102,000
$
122,400
Accounts receivable
81,700
88,000
Inventory
109,700
100,000
Total current assets
293,400
310,400
Property, plant, and equipment
291,000
280,000
Less accumulated depreciation
97,000
70,000
Net property, plant, and equipment
194,000
210,000
Total assets
$
487,400
$
520,400
Accounts payable
$
64,000
$
113,700
Income taxes payable
49,700
65,700
Bonds payable
120,000
100,000
Common stock
140,000
120,000
Retained earnings
113,700
121,000
Total liabilities and stockholders’ equity
$
487,400
$
520,400…
Chapter 12 Solutions
Financial Accounting, 8th Edition
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - What are the major categories of business...Ch. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Compare the two methods of reporting cash flows...Ch. 12 - Prob. 10Q
Ch. 12 - Prob. 11QCh. 12 - What are noncash investing and financing...Ch. 12 - Prob. 13QCh. 12 - Prob. 1MCQCh. 12 - Prob. 2MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 6MCQCh. 12 - Prob. 7MCQCh. 12 - Prob. 8MCQCh. 12 - Prob. 9MCQCh. 12 - Prob. 10MCQCh. 12 - Prob. 1MECh. 12 - Determining the Effects of Account Changes on Cash...Ch. 12 - Prob. 3MECh. 12 - Prob. 4MECh. 12 - Prob. 5MECh. 12 - Prob. 6MECh. 12 - Prob. 7MECh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Inferring Balance Sheet Changes from the Cash Flow...Ch. 12 - (Chapter Supplement B) Computing and Reporting...Ch. 12 - During the period, Sanchez Company sold some...Ch. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 21ECh. 12 - Prob. 22ECh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Prob. 1APCh. 12 - Prob. 2APCh. 12 - Prob. 3APCh. 12 - Prob. 1CPCh. 12 - Prob. 2CPCh. 12 - Prob. 3CPCh. 12 - Prob. 4CPCh. 12 - Prob. 5CPCh. 12 - Prob. 6CPCh. 12 - Prob. 1CC
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- How does Accounts Payable impact Declan's Designs' 2022 Statement of Cash Flows?arrow_forwardDetermining Selected Amounts for Cash Flows from Operating Activities-Direct Method Selected data taken from the accounting records of Ginis Inc. for the current year ended December 31 are as follows: Balance, December 31 Balance, January 1 Accrued expenses payable (operating expenses) $6,360 $6,950 Accounts payable (merchandise creditors) 38,680 42,690 Inventories 72,600 78,910 During the current year, the cost of merchandise sold was $420,000, and the operating expenses other than depreciation were $85,000. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows. a. Determine the amount reported on the statement of cash flows for cash payments for merchandise. b. Determine the amount reported on the statement of cash flows for cash payments for operating expenses. %24arrow_forwardHow does Accounts Receivable impact Declan's Designs 2022 Statement of Cash Flows?arrow_forward
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