6th Edition

ISBN: 9781265554927

Author: PHILLIPS

Publisher: MCG

Concept explainers

Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows fro…

Balance Sheet

A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the …

Financial Statements

Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It…

Owner's Capital

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…

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Textbook Question

Chapter 12, Problem 9Q

Explain why a $50,000 increase in inventory during the year must he included in computing cash flows from operating activities under both the direct and indirect methods.

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Chapter 12, Problem 8Q

Chapter 12, Problem 10Q

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Department A had 15,000 units in work in process that were 60% completed as to labor and overhead at the beginning of the period; 45,600 units of direct materials were added during the period; 42,500 units were completed during the period, and 11,000 units were 80% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was ____ Units.

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Chapter 12 Solutions

FUNDAMENTALS OF FINANCIAL ACCOUNTING LL

Ch. 12 - Compare the purposes of the income statement, the...Ch. 12 - Prob. 2Q Ch. 12 - Prob. 3Q Ch. 12 - What are the major categories of business...Ch. 12 - Prob. 5Q Ch. 12 - Describe the types of items used to compute cash...Ch. 12 - Under the indirect method, depreciation expense is...Ch. 12 - Prob. 8Q Ch. 12 - Explain why a 50,000 increase in inventory during...Ch. 12 - Prob. 10Q

Ch. 12 - As a junior analyst, you are evaluating the...Ch. 12 - Prob. 12Q Ch. 12 - Prob. 13Q Ch. 12 - Prob. 14Q Ch. 12 - (Supplement 12A) How is the sale of equipment...Ch. 12 - Prob. 1MC Ch. 12 - Prob. 2MC Ch. 12 - Prob. 3MC Ch. 12 - Prob. 4MC Ch. 12 - Which of the following would not appear in the...Ch. 12 - Prob. 6MC Ch. 12 - Prob. 7MC Ch. 12 - Prob. 8MC Ch. 12 - The total change in cash as shown near the bottom...Ch. 12 - Prob. 10MC Ch. 12 - Prob. 1ME Ch. 12 - Matching Items Reported to Cash Flow Statement...Ch. 12 - Determining the Effects of Account Changes on Cash...Ch. 12 - Computing Cash Flows from Operating Activities...Ch. 12 - Prob. 5ME Ch. 12 - Computing Cash Flows from Investing Activities...Ch. 12 - Computing Cash Flows from Financing Activities...Ch. 12 - Computing Cash Flows Under IFRS Using the data...Ch. 12 - Prob. 9ME Ch. 12 - Interpreting Cash Flows from Operating, Investing,...Ch. 12 - Matching Items Reported to Cash Flow Statement...Ch. 12 - Computing Cash Flows from Operating Activities...Ch. 12 - Prob. 13ME Ch. 12 - Matching items Reported to Cash Flow Statement...Ch. 12 - Prob. 2E Ch. 12 - Prob. 3E Ch. 12 - Prob. 4E Ch. 12 - Prob. 5E Ch. 12 - Prob. 6E Ch. 12 - Prob. 7E Ch. 12 - Prob. 8E Ch. 12 - Reporting and Interpreting Cash Flows from...Ch. 12 - Prob. 10E Ch. 12 - Prob. 11E Ch. 12 - Inferring Balance Sheet Changes from the Cash Flow...Ch. 12 - Prob. 13E Ch. 12 - Prob. 14E Ch. 12 - Prob. 15E Ch. 12 - Prob. 16E Ch. 12 - Prob. 17E Ch. 12 - Prob. 18E Ch. 12 - Prob. 19E Ch. 12 - Prob. 20E Ch. 12 - Prob. 21E Ch. 12 - Prob. 22E Ch. 12 - (Supplement 12B) Preparing a Statement of Cash...Ch. 12 - Determining Cash Flow Statement Effects of...Ch. 12 - Prob. 2CP Ch. 12 - Prob. 3CP Ch. 12 - Preparing and Interpreting a Statement of Cash...Ch. 12 - Prob. 5CP Ch. 12 - Prob. 6CP Ch. 12 - (Supplement 12A) Preparing and Interpreting a...Ch. 12 - Prob. 1PA Ch. 12 - Prob. 2PA Ch. 12 - Prob. 3PA Ch. 12 - Preparing and Interpreting a Statement of Cash...Ch. 12 - Computing Cash Flows from Operating Activities...Ch. 12 - Prob. 6PA Ch. 12 - (Supplement 12A) Preparing and Interpreting a...Ch. 12 - Prob. 1PB Ch. 12 - Prob. 2PB Ch. 12 - Prob. 3PB Ch. 12 - Preparing and Interpreting a Statement of Cash...Ch. 12 - Prob. 5PB Ch. 12 - Prob. 6PB Ch. 12 - Prob. 1SDC Ch. 12 - Prob. 2SDC Ch. 12 - Prob. 6SDC Ch. 12 - Prob. 7SDC Ch. 12 - Prob. 8SDC Ch. 12 - Prob. 9SDC Ch. 12 - Prob. 1CC

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Explain why a $50,000 increase in inventory during the year must he included in computing cash flows from oper­ating activities under both the direct and indirect methods.

Solution Summary: The author explains that an increase in inventory of 50,000 during the year must be included in computing cash flows from operating activities under both direct and indirect methods.

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Chapter 12 Solutions

Explain why a $50,000 increase in inventory during the year must he included in computing cash flows from operating activities under both the direct and indirect methods.