Cash Flow Statement: Cash flow statement gives the information related to the cash inflow and outflow of the company. It gives the information cash inflow and out flow from the operating, investing and financing activities. 1. a. To explain: Object of the cash flow statement.

Question

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Answer 1

Question

Chapter 12, Problem 6BTN

To determine

Cash Flow Statement:

Cash flow statement gives the information related to the cash inflow and outflow of the company. It gives the information cash inflow and out flow from the operating, investing and financing activities.

1.

a.

To explain: Object of the cash flow statement.

Expert Solution

Explanation of Solution

Cash flow statement gives the information related to the cash receipt and cash payment of the company.
It also gives the information related to change cash of operating activities, investing activities and financing activities.

b.

To determine

To explain: Similarity and difference between the direct and indirect method.

b.

Expert Solution

Explanation of Solution

There are the two method two calculate the cash flow are direct and indirect method.
Cash flow stamen from direct method starts from the sale and by indirect method stare form the net income of the company.
Similarity in the both method is that both of these give the same answer of the cash inflow and outflow.

c.

To determine

To explain: Steps followed in the cash flow statement.

c.

Expert Solution

Explanation of Solution

To make the cash flow statement 1^s^t calculate the cash from the operating activities then investing activities and at the end cash flow from financing activities are calculated.

d.

To determine

To explain: Type of the information given by the cash flow statement.

d.

Expert Solution

Explanation of Solution

Cash flow statement analyses how much cash is coming from the operating, investing and financing activities to the company and from where these cash are coming.

2.

a.

To determine

To explain: Adjustment of the noncash operating revenue and expense in cash flow statement.

2.

a.

Expert Solution

Explanation of Solution

All the noncash expense is add in net income to get the cash from the operating activities.
All the noncash revenue are deducted from the net income to get the correct cash flow from the operating activities.

b.

To determine

To explain: Adjustment of the noncash operating gain and loss.

b.

Expert Solution

Explanation of Solution

In the cash flow stamen all the noncash gain are deducted from the net income and all the noncash loss are added in the net income.

c.

To determine

To explain: Increase and decrease in noncash current assets.

c.

Expert Solution

Explanation of Solution

If the noncash current assets are increase then it is added and if the noncash assets decrease then it is added in the cash flow statement.

d.

To determine

To explain: Increase and decrease in noncash current assets.

d.

Expert Solution

Explanation of Solution

If the noncash current liability is increase then it is deducted and if the noncash liability decreases then it is added in the cash flow statement.

3.

a.

To determine

To explain: Formula for cash collected from customer.

3.

a.

Expert Solution

Explanation of Solution

To fine the cash collected from the customer, increase in the account receivable is deducted from the sales revenue.
If the account receivable decrease during the year then account receivable are added in the sales revenue.

Formula to calculate the cash collected from the customer

Cash collectod from customer=( Sales revenue−Increase in account receivable +Decrease in account receivable )

b.

To determine

To explain: Formula for cash paid for inventory to supplier.

b.

Expert Solution

Explanation of Solution

To calculate the cash paid to the supplies decrease in the account payable are added to the cost of the goods sold and decrease in the inventory is detected from the cost of the goods sold and vise vase.

Formula to calculate the cash paid to supplies

Cash paid to supplies=( Cost of the goods sold+Decrease in account payable −Decrease in inventory ) =$411,000+$5,000−$22,700 =$393,300

c.

To determine

To explain: Formula for cash paid for wages and operating expense.

c.

Expert Solution

Explanation of Solution

To calculate the cash paid wages and operating expanse decrease in prepaid expense and wages payable are deducted from the other expense and vice versa.

Calculate the cash paid for other expenses,

Cash paid other expenses=( Other expense−Decrease in prepaid expense −Decrease Wages payable ) =$67,000−$1,000−$9,000 =$57,000

d.

To determine

To explain: Formula for cash paid for interest and taxes.

d.

Expert Solution

Explanation of Solution

To calculate the cash paid for the interest and taxes, if the tax is increasing during the year then it will be added and if tax and interest is decreasing then it subtract.

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Answer 2

Question

Chapter 12, Problem 6BTN

To determine

Cash Flow Statement:

Cash flow statement gives the information related to the cash inflow and outflow of the company. It gives the information cash inflow and out flow from the operating, investing and financing activities.

1.

a.

To explain: Object of the cash flow statement.

Expert Solution

Explanation of Solution

Cash flow statement gives the information related to the cash receipt and cash payment of the company.
It also gives the information related to change cash of operating activities, investing activities and financing activities.

b.

To determine

To explain: Similarity and difference between the direct and indirect method.

b.

Expert Solution

Explanation of Solution

There are the two method two calculate the cash flow are direct and indirect method.
Cash flow stamen from direct method starts from the sale and by indirect method stare form the net income of the company.
Similarity in the both method is that both of these give the same answer of the cash inflow and outflow.

c.

To determine

To explain: Steps followed in the cash flow statement.

c.

Expert Solution

Explanation of Solution

To make the cash flow statement 1^s^t calculate the cash from the operating activities then investing activities and at the end cash flow from financing activities are calculated.

d.

To determine

To explain: Type of the information given by the cash flow statement.

d.

Expert Solution

Explanation of Solution

Cash flow statement analyses how much cash is coming from the operating, investing and financing activities to the company and from where these cash are coming.

2.

a.

To determine

To explain: Adjustment of the noncash operating revenue and expense in cash flow statement.

2.

a.

Expert Solution

Explanation of Solution

All the noncash expense is add in net income to get the cash from the operating activities.
All the noncash revenue are deducted from the net income to get the correct cash flow from the operating activities.

b.

To determine

To explain: Adjustment of the noncash operating gain and loss.

b.

Expert Solution

Explanation of Solution

In the cash flow stamen all the noncash gain are deducted from the net income and all the noncash loss are added in the net income.

c.

To determine

To explain: Increase and decrease in noncash current assets.

c.

Expert Solution

Explanation of Solution

If the noncash current assets are increase then it is added and if the noncash assets decrease then it is added in the cash flow statement.

d.

To determine

To explain: Increase and decrease in noncash current assets.

d.

Expert Solution

Explanation of Solution

If the noncash current liability is increase then it is deducted and if the noncash liability decreases then it is added in the cash flow statement.

3.

a.

To determine

To explain: Formula for cash collected from customer.

3.

a.

Expert Solution

Explanation of Solution

To fine the cash collected from the customer, increase in the account receivable is deducted from the sales revenue.
If the account receivable decrease during the year then account receivable are added in the sales revenue.

Formula to calculate the cash collected from the customer

Cash collectod from customer=( Sales revenue−Increase in account receivable +Decrease in account receivable )

b.

To determine

To explain: Formula for cash paid for inventory to supplier.

b.

Expert Solution

Explanation of Solution

To calculate the cash paid to the supplies decrease in the account payable are added to the cost of the goods sold and decrease in the inventory is detected from the cost of the goods sold and vise vase.

Formula to calculate the cash paid to supplies

Cash paid to supplies=( Cost of the goods sold+Decrease in account payable −Decrease in inventory ) =$411,000+$5,000−$22,700 =$393,300

c.

To determine

To explain: Formula for cash paid for wages and operating expense.

c.

Expert Solution

Explanation of Solution

To calculate the cash paid wages and operating expanse decrease in prepaid expense and wages payable are deducted from the other expense and vice versa.

Calculate the cash paid for other expenses,

Cash paid other expenses=( Other expense−Decrease in prepaid expense −Decrease Wages payable ) =$67,000−$1,000−$9,000 =$57,000

d.

To determine

To explain: Formula for cash paid for interest and taxes.

d.

Expert Solution

Explanation of Solution

To calculate the cash paid for the interest and taxes, if the tax is increasing during the year then it will be added and if tax and interest is decreasing then it subtract.

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Answer 3

Question

Chapter 12, Problem 6BTN

To determine

Cash Flow Statement:

Cash flow statement gives the information related to the cash inflow and outflow of the company. It gives the information cash inflow and out flow from the operating, investing and financing activities.

1.

a.

To explain: Object of the cash flow statement.

Expert Solution

Explanation of Solution

Cash flow statement gives the information related to the cash receipt and cash payment of the company.
It also gives the information related to change cash of operating activities, investing activities and financing activities.

b.

To determine

To explain: Similarity and difference between the direct and indirect method.

b.

Expert Solution

Explanation of Solution

There are the two method two calculate the cash flow are direct and indirect method.
Cash flow stamen from direct method starts from the sale and by indirect method stare form the net income of the company.
Similarity in the both method is that both of these give the same answer of the cash inflow and outflow.

c.

To determine

To explain: Steps followed in the cash flow statement.

c.

Expert Solution

Explanation of Solution

To make the cash flow statement 1^s^t calculate the cash from the operating activities then investing activities and at the end cash flow from financing activities are calculated.

d.

To determine

To explain: Type of the information given by the cash flow statement.

d.

Expert Solution

Explanation of Solution

Cash flow statement analyses how much cash is coming from the operating, investing and financing activities to the company and from where these cash are coming.

2.

a.

To determine

To explain: Adjustment of the noncash operating revenue and expense in cash flow statement.

2.

a.

Expert Solution

Explanation of Solution

All the noncash expense is add in net income to get the cash from the operating activities.
All the noncash revenue are deducted from the net income to get the correct cash flow from the operating activities.

b.

To determine

To explain: Adjustment of the noncash operating gain and loss.

b.

Expert Solution

Explanation of Solution

In the cash flow stamen all the noncash gain are deducted from the net income and all the noncash loss are added in the net income.

c.

To determine

To explain: Increase and decrease in noncash current assets.

c.

Expert Solution

Explanation of Solution

If the noncash current assets are increase then it is added and if the noncash assets decrease then it is added in the cash flow statement.

d.

To determine

To explain: Increase and decrease in noncash current assets.

d.

Expert Solution

Explanation of Solution

If the noncash current liability is increase then it is deducted and if the noncash liability decreases then it is added in the cash flow statement.

3.

a.

To determine

To explain: Formula for cash collected from customer.

3.

a.

Expert Solution

Explanation of Solution

To fine the cash collected from the customer, increase in the account receivable is deducted from the sales revenue.
If the account receivable decrease during the year then account receivable are added in the sales revenue.

Formula to calculate the cash collected from the customer

Cash collectod from customer=( Sales revenue−Increase in account receivable +Decrease in account receivable )

b.

To determine

To explain: Formula for cash paid for inventory to supplier.

b.

Expert Solution

Explanation of Solution

To calculate the cash paid to the supplies decrease in the account payable are added to the cost of the goods sold and decrease in the inventory is detected from the cost of the goods sold and vise vase.

Formula to calculate the cash paid to supplies

Cash paid to supplies=( Cost of the goods sold+Decrease in account payable −Decrease in inventory ) =$411,000+$5,000−$22,700 =$393,300

c.

To determine

To explain: Formula for cash paid for wages and operating expense.

c.

Expert Solution

Explanation of Solution

To calculate the cash paid wages and operating expanse decrease in prepaid expense and wages payable are deducted from the other expense and vice versa.

Calculate the cash paid for other expenses,

Cash paid other expenses=( Other expense−Decrease in prepaid expense −Decrease Wages payable ) =$67,000−$1,000−$9,000 =$57,000

d.

To determine

To explain: Formula for cash paid for interest and taxes.

d.

Expert Solution

Explanation of Solution

To calculate the cash paid for the interest and taxes, if the tax is increasing during the year then it will be added and if tax and interest is decreasing then it subtract.

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Answer 4

Question

Chapter 12, Problem 6BTN

To determine

Cash Flow Statement:

Cash flow statement gives the information related to the cash inflow and outflow of the company. It gives the information cash inflow and out flow from the operating, investing and financing activities.

1.

a.

To explain: Object of the cash flow statement.

Expert Solution

Explanation of Solution

Cash flow statement gives the information related to the cash receipt and cash payment of the company.
It also gives the information related to change cash of operating activities, investing activities and financing activities.

b.

To determine

To explain: Similarity and difference between the direct and indirect method.

b.

Expert Solution

Explanation of Solution

There are the two method two calculate the cash flow are direct and indirect method.
Cash flow stamen from direct method starts from the sale and by indirect method stare form the net income of the company.
Similarity in the both method is that both of these give the same answer of the cash inflow and outflow.

c.

To determine

To explain: Steps followed in the cash flow statement.

c.

Expert Solution

Explanation of Solution

To make the cash flow statement 1^s^t calculate the cash from the operating activities then investing activities and at the end cash flow from financing activities are calculated.

d.

To determine

To explain: Type of the information given by the cash flow statement.

d.

Expert Solution

Explanation of Solution

Cash flow statement analyses how much cash is coming from the operating, investing and financing activities to the company and from where these cash are coming.

2.

a.

To determine

To explain: Adjustment of the noncash operating revenue and expense in cash flow statement.

2.

a.

Expert Solution

Explanation of Solution

All the noncash expense is add in net income to get the cash from the operating activities.
All the noncash revenue are deducted from the net income to get the correct cash flow from the operating activities.

b.

To determine

To explain: Adjustment of the noncash operating gain and loss.

b.

Expert Solution

Explanation of Solution

In the cash flow stamen all the noncash gain are deducted from the net income and all the noncash loss are added in the net income.

c.

To determine

To explain: Increase and decrease in noncash current assets.

c.

Expert Solution

Explanation of Solution

If the noncash current assets are increase then it is added and if the noncash assets decrease then it is added in the cash flow statement.

d.

To determine

To explain: Increase and decrease in noncash current assets.

d.

Expert Solution

Explanation of Solution

If the noncash current liability is increase then it is deducted and if the noncash liability decreases then it is added in the cash flow statement.

3.

a.

To determine

To explain: Formula for cash collected from customer.

3.

a.

Expert Solution

Explanation of Solution

To fine the cash collected from the customer, increase in the account receivable is deducted from the sales revenue.
If the account receivable decrease during the year then account receivable are added in the sales revenue.

Formula to calculate the cash collected from the customer

Cash collectod from customer=( Sales revenue−Increase in account receivable +Decrease in account receivable )

b.

To determine

To explain: Formula for cash paid for inventory to supplier.

b.

Expert Solution

Explanation of Solution

To calculate the cash paid to the supplies decrease in the account payable are added to the cost of the goods sold and decrease in the inventory is detected from the cost of the goods sold and vise vase.

Formula to calculate the cash paid to supplies

Cash paid to supplies=( Cost of the goods sold+Decrease in account payable −Decrease in inventory ) =$411,000+$5,000−$22,700 =$393,300

c.

To determine

To explain: Formula for cash paid for wages and operating expense.

c.

Expert Solution

Explanation of Solution

To calculate the cash paid wages and operating expanse decrease in prepaid expense and wages payable are deducted from the other expense and vice versa.

Calculate the cash paid for other expenses,

Cash paid other expenses=( Other expense−Decrease in prepaid expense −Decrease Wages payable ) =$67,000−$1,000−$9,000 =$57,000

d.

To determine

To explain: Formula for cash paid for interest and taxes.

d.

Expert Solution

Explanation of Solution

To calculate the cash paid for the interest and taxes, if the tax is increasing during the year then it will be added and if tax and interest is decreasing then it subtract.

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

Answer 5

Chapter 12, Problem 6BTN

To determine

Cash Flow Statement:

Cash flow statement gives the information related to the cash inflow and outflow of the company. It gives the information cash inflow and out flow from the operating, investing and financing activities.

1.

a.

To explain: Object of the cash flow statement.

Expert Solution

Explanation of Solution

Cash flow statement gives the information related to the cash receipt and cash payment of the company.
It also gives the information related to change cash of operating activities, investing activities and financing activities.

b.

To determine

To explain: Similarity and difference between the direct and indirect method.

b.

Expert Solution

Explanation of Solution

There are the two method two calculate the cash flow are direct and indirect method.
Cash flow stamen from direct method starts from the sale and by indirect method stare form the net income of the company.
Similarity in the both method is that both of these give the same answer of the cash inflow and outflow.

c.

To determine

To explain: Steps followed in the cash flow statement.

c.

Expert Solution

Explanation of Solution

To make the cash flow statement 1^s^t calculate the cash from the operating activities then investing activities and at the end cash flow from financing activities are calculated.

d.

To determine

To explain: Type of the information given by the cash flow statement.

d.

Expert Solution

Explanation of Solution

Cash flow statement analyses how much cash is coming from the operating, investing and financing activities to the company and from where these cash are coming.

2.

a.

To determine

To explain: Adjustment of the noncash operating revenue and expense in cash flow statement.

2.

a.

Expert Solution

Explanation of Solution

All the noncash expense is add in net income to get the cash from the operating activities.
All the noncash revenue are deducted from the net income to get the correct cash flow from the operating activities.

b.

To determine

To explain: Adjustment of the noncash operating gain and loss.

b.

Expert Solution

Explanation of Solution

In the cash flow stamen all the noncash gain are deducted from the net income and all the noncash loss are added in the net income.

c.

To determine

To explain: Increase and decrease in noncash current assets.

c.

Expert Solution

Explanation of Solution

If the noncash current assets are increase then it is added and if the noncash assets decrease then it is added in the cash flow statement.

d.

To determine

To explain: Increase and decrease in noncash current assets.

d.

Expert Solution

Explanation of Solution

If the noncash current liability is increase then it is deducted and if the noncash liability decreases then it is added in the cash flow statement.

3.

a.

To determine

To explain: Formula for cash collected from customer.

3.

a.

Expert Solution

Explanation of Solution

To fine the cash collected from the customer, increase in the account receivable is deducted from the sales revenue.
If the account receivable decrease during the year then account receivable are added in the sales revenue.

Formula to calculate the cash collected from the customer

Cash collectod from customer=( Sales revenue−Increase in account receivable +Decrease in account receivable )

b.

To determine

To explain: Formula for cash paid for inventory to supplier.

b.

Expert Solution

Explanation of Solution

To calculate the cash paid to the supplies decrease in the account payable are added to the cost of the goods sold and decrease in the inventory is detected from the cost of the goods sold and vise vase.

Formula to calculate the cash paid to supplies

Cash paid to supplies=( Cost of the goods sold+Decrease in account payable −Decrease in inventory ) =$411,000+$5,000−$22,700 =$393,300

c.

To determine

To explain: Formula for cash paid for wages and operating expense.

c.

Expert Solution

Explanation of Solution

To calculate the cash paid wages and operating expanse decrease in prepaid expense and wages payable are deducted from the other expense and vice versa.

Calculate the cash paid for other expenses,

Cash paid other expenses=( Other expense−Decrease in prepaid expense −Decrease Wages payable ) =$67,000−$1,000−$9,000 =$57,000

d.

To determine

To explain: Formula for cash paid for interest and taxes.

d.

Expert Solution

Explanation of Solution

To calculate the cash paid for the interest and taxes, if the tax is increasing during the year then it will be added and if tax and interest is decreasing then it subtract.

Answer 6

Chapter 12, Problem 6BTN

To determine

Cash Flow Statement:

Cash flow statement gives the information related to the cash inflow and outflow of the company. It gives the information cash inflow and out flow from the operating, investing and financing activities.

1.

a.

To explain: Object of the cash flow statement.

Expert Solution

Explanation of Solution

Cash flow statement gives the information related to the cash receipt and cash payment of the company.
It also gives the information related to change cash of operating activities, investing activities and financing activities.

Answer 7

Chapter 12, Problem 6BTN

To determine

Cash Flow Statement:

Cash flow statement gives the information related to the cash inflow and outflow of the company. It gives the information cash inflow and out flow from the operating, investing and financing activities.

1.

a.

To explain: Object of the cash flow statement.

Answer 8

Expert Solution

Explanation of Solution

Cash flow statement gives the information related to the cash receipt and cash payment of the company.
It also gives the information related to change cash of operating activities, investing activities and financing activities.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

b.

To determine

To explain: Similarity and difference between the direct and indirect method.

b.

Expert Solution

Explanation of Solution

There are the two method two calculate the cash flow are direct and indirect method.
Cash flow stamen from direct method starts from the sale and by indirect method stare form the net income of the company.
Similarity in the both method is that both of these give the same answer of the cash inflow and outflow.

Answer 13

b.

To determine

To explain: Similarity and difference between the direct and indirect method.

Answer 14

b.

Expert Solution

Explanation of Solution

There are the two method two calculate the cash flow are direct and indirect method.
Cash flow stamen from direct method starts from the sale and by indirect method stare form the net income of the company.
Similarity in the both method is that both of these give the same answer of the cash inflow and outflow.

Answer 15

b.

Expert Solution

Answer 16

b.

Expert Solution

Answer 17

Expert Solution

Answer 18

c.

To determine

To explain: Steps followed in the cash flow statement.

c.

Expert Solution

Explanation of Solution

To make the cash flow statement 1^s^t calculate the cash from the operating activities then investing activities and at the end cash flow from financing activities are calculated.

Answer 19

c.

To determine

To explain: Steps followed in the cash flow statement.

Answer 20

c.

Expert Solution

Explanation of Solution

To make the cash flow statement 1^s^t calculate the cash from the operating activities then investing activities and at the end cash flow from financing activities are calculated.

Answer 21

c.

Expert Solution

Answer 22

c.

Expert Solution

Answer 23

Expert Solution

Answer 24

d.

To determine

To explain: Type of the information given by the cash flow statement.

d.

Expert Solution

Explanation of Solution

Cash flow statement analyses how much cash is coming from the operating, investing and financing activities to the company and from where these cash are coming.

Answer 25

d.

To determine

To explain: Type of the information given by the cash flow statement.

Answer 26

d.

Expert Solution

Explanation of Solution

Cash flow statement analyses how much cash is coming from the operating, investing and financing activities to the company and from where these cash are coming.

Answer 27

d.

Expert Solution

Answer 28

d.

Expert Solution

Answer 29

Expert Solution

Answer 30

2.

a.

To determine

To explain: Adjustment of the noncash operating revenue and expense in cash flow statement.

2.

a.

Expert Solution

Explanation of Solution

All the noncash expense is add in net income to get the cash from the operating activities.
All the noncash revenue are deducted from the net income to get the correct cash flow from the operating activities.

Answer 31

2.

a.

To determine

To explain: Adjustment of the noncash operating revenue and expense in cash flow statement.

Answer 32

2.

a.

Expert Solution

Explanation of Solution

All the noncash expense is add in net income to get the cash from the operating activities.
All the noncash revenue are deducted from the net income to get the correct cash flow from the operating activities.

Answer 33

2.

a.

Expert Solution

Answer 34

2.

a.

Expert Solution

Answer 35

Expert Solution

Answer 36

b.

To determine

To explain: Adjustment of the noncash operating gain and loss.

b.

Expert Solution

Explanation of Solution

In the cash flow stamen all the noncash gain are deducted from the net income and all the noncash loss are added in the net income.

Answer 37

b.

To determine

To explain: Adjustment of the noncash operating gain and loss.

Answer 38

b.

Expert Solution

Explanation of Solution

In the cash flow stamen all the noncash gain are deducted from the net income and all the noncash loss are added in the net income.

Answer 39

b.

Expert Solution

Answer 40

b.

Expert Solution

Answer 41

Expert Solution

Answer 42

c.

To determine

To explain: Increase and decrease in noncash current assets.

c.

Expert Solution

Explanation of Solution

If the noncash current assets are increase then it is added and if the noncash assets decrease then it is added in the cash flow statement.

Answer 43

c.

To determine

To explain: Increase and decrease in noncash current assets.

Answer 44

c.

Expert Solution

Explanation of Solution

If the noncash current assets are increase then it is added and if the noncash assets decrease then it is added in the cash flow statement.

Answer 45

c.

Expert Solution

Answer 46

c.

Expert Solution

Answer 47

Expert Solution

Answer 48

d.

To determine

To explain: Increase and decrease in noncash current assets.

d.

Expert Solution

Explanation of Solution

If the noncash current liability is increase then it is deducted and if the noncash liability decreases then it is added in the cash flow statement.

Answer 49

d.

To determine

To explain: Increase and decrease in noncash current assets.

Answer 50

d.

Expert Solution

Explanation of Solution

If the noncash current liability is increase then it is deducted and if the noncash liability decreases then it is added in the cash flow statement.

Answer 51

d.

Expert Solution

Answer 52

d.

Expert Solution

Answer 53

Expert Solution

Answer 54

3.

a.

To determine

To explain: Formula for cash collected from customer.

3.

a.

Expert Solution

Explanation of Solution

To fine the cash collected from the customer, increase in the account receivable is deducted from the sales revenue.
If the account receivable decrease during the year then account receivable are added in the sales revenue.

Formula to calculate the cash collected from the customer

Cash collectod from customer=( Sales revenue−Increase in account receivable +Decrease in account receivable )

Answer 55

3.

a.

To determine

To explain: Formula for cash collected from customer.

Answer 56

3.

a.

Expert Solution

Explanation of Solution

To fine the cash collected from the customer, increase in the account receivable is deducted from the sales revenue.
If the account receivable decrease during the year then account receivable are added in the sales revenue.

Formula to calculate the cash collected from the customer

Cash collectod from customer=( Sales revenue−Increase in account receivable +Decrease in account receivable )

Answer 57

3.

a.

Expert Solution

Answer 58

3.

a.

Expert Solution

Answer 59

Expert Solution

Answer 60

b.

To determine

To explain: Formula for cash paid for inventory to supplier.

b.

Expert Solution

Explanation of Solution

To calculate the cash paid to the supplies decrease in the account payable are added to the cost of the goods sold and decrease in the inventory is detected from the cost of the goods sold and vise vase.

Formula to calculate the cash paid to supplies

Cash paid to supplies=( Cost of the goods sold+Decrease in account payable −Decrease in inventory ) =$411,000+$5,000−$22,700 =$393,300

Answer 61

b.

To determine

To explain: Formula for cash paid for inventory to supplier.

Answer 62

b.

Expert Solution

Explanation of Solution

To calculate the cash paid to the supplies decrease in the account payable are added to the cost of the goods sold and decrease in the inventory is detected from the cost of the goods sold and vise vase.

Formula to calculate the cash paid to supplies

Cash paid to supplies=( Cost of the goods sold+Decrease in account payable −Decrease in inventory ) =$411,000+$5,000−$22,700 =$393,300

Answer 63

b.

Expert Solution

Answer 64

b.

Expert Solution

Answer 65

Expert Solution

Answer 66

c.

To determine

To explain: Formula for cash paid for wages and operating expense.

c.

Expert Solution

Explanation of Solution

To calculate the cash paid wages and operating expanse decrease in prepaid expense and wages payable are deducted from the other expense and vice versa.

Calculate the cash paid for other expenses,

Cash paid other expenses=( Other expense−Decrease in prepaid expense −Decrease Wages payable ) =$67,000−$1,000−$9,000 =$57,000

Answer 67

c.

To determine

To explain: Formula for cash paid for wages and operating expense.

Answer 68

c.

Expert Solution

Explanation of Solution

To calculate the cash paid wages and operating expanse decrease in prepaid expense and wages payable are deducted from the other expense and vice versa.

Calculate the cash paid for other expenses,

Cash paid other expenses=( Other expense−Decrease in prepaid expense −Decrease Wages payable ) =$67,000−$1,000−$9,000 =$57,000

Answer 69

c.

Expert Solution

Answer 70

c.

Expert Solution

Answer 71

Expert Solution

Answer 72

d.

To determine

To explain: Formula for cash paid for interest and taxes.

d.

Expert Solution

Explanation of Solution

To calculate the cash paid for the interest and taxes, if the tax is increasing during the year then it will be added and if tax and interest is decreasing then it subtract.

Answer 73

d.

To determine

To explain: Formula for cash paid for interest and taxes.

Answer 74

d.

Expert Solution

Explanation of Solution

To calculate the cash paid for the interest and taxes, if the tax is increasing during the year then it will be added and if tax and interest is decreasing then it subtract.