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: Statement of cash flows .

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Answer 1

Question

Chapter 12, Problem 4PSA

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: Statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flow	Amount ($)
Operating activities
Net income (a)	114,975
Increase in account receivable(b)	(15,185)
Increase in inventory(c	(23,856)
Decreased in prepaid expenses(d)	625
Decreased in account payable (e)	(61,534)
Depreciation expenses(f)	20,750
Loss on sale of equipment(g)	5,125
Cash from operating activities	40,900
Investing activities
Cash from equipment sale (g)	11,625
Cash paid for equipment purchased (h)	(30,000)
Cash outflow from investing activities	(18,375)
Financing activities
Cash receipt from short term notes payable(i)	4,000
Cash paid toward long term notes payable (k)	(50,125)
Cash received by issuing share(l)	50,000
Cash paid as dividend	(50,100)
Cash outflow from financing activities	(46,225)
Net decrease in cash	(23,700)
Cash at hand at the end of 2014	73,500
Cash at hand at the end of 2015	49,800

Table (1)

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Answer 2

Question

Chapter 12, Problem 4PSA

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: Statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flow	Amount ($)
Operating activities
Net income (a)	114,975
Increase in account receivable(b)	(15,185)
Increase in inventory(c	(23,856)
Decreased in prepaid expenses(d)	625
Decreased in account payable (e)	(61,534)
Depreciation expenses(f)	20,750
Loss on sale of equipment(g)	5,125
Cash from operating activities	40,900
Investing activities
Cash from equipment sale (g)	11,625
Cash paid for equipment purchased (h)	(30,000)
Cash outflow from investing activities	(18,375)
Financing activities
Cash receipt from short term notes payable(i)	4,000
Cash paid toward long term notes payable (k)	(50,125)
Cash received by issuing share(l)	50,000
Cash paid as dividend	(50,100)
Cash outflow from financing activities	(46,225)
Net decrease in cash	(23,700)
Cash at hand at the end of 2014	73,500
Cash at hand at the end of 2015	49,800

Table (1)

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Answer 3

Question

Chapter 12, Problem 4PSA

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: Statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flow	Amount ($)
Operating activities
Net income (a)	114,975
Increase in account receivable(b)	(15,185)
Increase in inventory(c	(23,856)
Decreased in prepaid expenses(d)	625
Decreased in account payable (e)	(61,534)
Depreciation expenses(f)	20,750
Loss on sale of equipment(g)	5,125
Cash from operating activities	40,900
Investing activities
Cash from equipment sale (g)	11,625
Cash paid for equipment purchased (h)	(30,000)
Cash outflow from investing activities	(18,375)
Financing activities
Cash receipt from short term notes payable(i)	4,000
Cash paid toward long term notes payable (k)	(50,125)
Cash received by issuing share(l)	50,000
Cash paid as dividend	(50,100)
Cash outflow from financing activities	(46,225)
Net decrease in cash	(23,700)
Cash at hand at the end of 2014	73,500
Cash at hand at the end of 2015	49,800

Table (1)

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Answer 4

Question

Chapter 12, Problem 4PSA

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: Statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flow	Amount ($)
Operating activities
Net income (a)	114,975
Increase in account receivable(b)	(15,185)
Increase in inventory(c	(23,856)
Decreased in prepaid expenses(d)	625
Decreased in account payable (e)	(61,534)
Depreciation expenses(f)	20,750
Loss on sale of equipment(g)	5,125
Cash from operating activities	40,900
Investing activities
Cash from equipment sale (g)	11,625
Cash paid for equipment purchased (h)	(30,000)
Cash outflow from investing activities	(18,375)
Financing activities
Cash receipt from short term notes payable(i)	4,000
Cash paid toward long term notes payable (k)	(50,125)
Cash received by issuing share(l)	50,000
Cash paid as dividend	(50,100)
Cash outflow from financing activities	(46,225)
Net decrease in cash	(23,700)
Cash at hand at the end of 2014	73,500
Cash at hand at the end of 2015	49,800

Table (1)

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Answer 5

Chapter 12, Problem 4PSA

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: Statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flow	Amount ($)
Operating activities
Net income (a)	114,975
Increase in account receivable(b)	(15,185)
Increase in inventory(c	(23,856)
Decreased in prepaid expenses(d)	625
Decreased in account payable (e)	(61,534)
Depreciation expenses(f)	20,750
Loss on sale of equipment(g)	5,125
Cash from operating activities	40,900
Investing activities
Cash from equipment sale (g)	11,625
Cash paid for equipment purchased (h)	(30,000)
Cash outflow from investing activities	(18,375)
Financing activities
Cash receipt from short term notes payable(i)	4,000
Cash paid toward long term notes payable (k)	(50,125)
Cash received by issuing share(l)	50,000
Cash paid as dividend	(50,100)
Cash outflow from financing activities	(46,225)
Net decrease in cash	(23,700)
Cash at hand at the end of 2014	73,500
Cash at hand at the end of 2015	49,800

Table (1)

Answer 6

Chapter 12, Problem 4PSA

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: Statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flow	Amount ($)
Operating activities
Net income (a)	114,975
Increase in account receivable(b)	(15,185)
Increase in inventory(c	(23,856)
Decreased in prepaid expenses(d)	625
Decreased in account payable (e)	(61,534)
Depreciation expenses(f)	20,750
Loss on sale of equipment(g)	5,125
Cash from operating activities	40,900
Investing activities
Cash from equipment sale (g)	11,625
Cash paid for equipment purchased (h)	(30,000)
Cash outflow from investing activities	(18,375)
Financing activities
Cash receipt from short term notes payable(i)	4,000
Cash paid toward long term notes payable (k)	(50,125)
Cash received by issuing share(l)	50,000
Cash paid as dividend	(50,100)
Cash outflow from financing activities	(46,225)
Net decrease in cash	(23,700)
Cash at hand at the end of 2014	73,500
Cash at hand at the end of 2015	49,800

Table (1)

Answer 7

Chapter 12, Problem 4PSA

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: Statement of cash flows.

Answer 8

Expert Solution & Answer

Explanation of Solution

Statement of cash flow	Amount ($)
Operating activities
Net income (a)	114,975
Increase in account receivable(b)	(15,185)
Increase in inventory(c	(23,856)
Decreased in prepaid expenses(d)	625
Decreased in account payable (e)	(61,534)
Depreciation expenses(f)	20,750
Loss on sale of equipment(g)	5,125
Cash from operating activities	40,900
Investing activities
Cash from equipment sale (g)	11,625
Cash paid for equipment purchased (h)	(30,000)
Cash outflow from investing activities	(18,375)
Financing activities
Cash receipt from short term notes payable(i)	4,000
Cash paid toward long term notes payable (k)	(50,125)
Cash received by issuing share(l)	50,000
Cash paid as dividend	(50,100)
Cash outflow from financing activities	(46,225)
Net decrease in cash	(23,700)
Cash at hand at the end of 2014	73,500
Cash at hand at the end of 2015	49,800