Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called cash flow statement. Determine the purpose of the cash flow statement.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 13, Problem 1Q

To determine

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called cash flow statement.

Determine the purpose of the cash flow statement.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The cash flow statement is prepared to study the net cash position of the company. It forms an integral part of the annual financial report.

Explanation of Solution

Cash flow statement is a report that shows the net cash inflows and outflows due to the company’s business operations and thus represents the liquidity position of the company. Various business activities are divided into Operating, Investing and Financial activities and the cash inflows and outflows under these broad headings are classified.

It thus shows how the company manages its cash liquidity.

Broad purposed can be enumerated as below −

Used to calculate the accounts receivables turnover − that is how fast the cash is received from the debtors.
Used to calculate the accounts payables turnover − that is how fast is the cash paid to the vendors to reduce the net outstanding.
Used to calculate the net change in the opening cash and the closing cash balance during the year.
Used to calculate how much of the inventory is converted into real cash as compared to previous year’s cash flow statement.

Conclusion

The purposes of the cash flow statement are thus briefly summarized.

Want to see more full solutions like this?

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

Students have asked these similar questions

Activity Based Costing - practice problem Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $89,500 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities 1. Materials handling 2. Machine setups Cost Drivers Number of requisitions Number of setups Total cost $35,000 27,500 3. Quality inspections Number of inspections 27,000 $89.500 The cost driver volume for each product was as follows: Cost Drivers Instruments Gauge Total Number of requisitions 400 600 1,000 Number of setups 200 300 500 Number of inspections 200 400 600 Insructions (a) Determine the overhead rate for each activity. (b) Assign the manufacturing overhead costs for April to the two products using activity-based costing.

Bodhi Company has three cost pools and two doggie products (leashes and collars). The activity cost pool of ordering has the cost drive of purchase orders. The activity cost pool of assembly has a cost driver of parts. The activity cost pool of supervising has the cost driver of labor hours. The accumulated data relative to those cost drivers is as follows: Expected Use of Estimated Cost Drivers by Product Cost Drivers Overhead Leashes Collars Purchase orders $260,000 70,000 60,000 Parts 400,000 300,000 500,000 Labor hours 300,000 15,000 10,000 $960,000 Instructions: (a) Compute the activity-based overhead rates. (b) Compute the costs assigned to leashes and collars for each activity cost pool. (c) Compute the total costs assigned to each product.

Torre Corporation incurred the following transactions. 1. Purchased raw materials on account $46,300. 2. Raw Materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials. 3. Factory labor costs incurred were $55,900, of which $51,000 pertained to factory wages payable and $4,900 pertained to employer payroll taxes payable. 4. Time tickets indicated that $50,000 was direct labor and $5,900 was indirect labor. 5. Overhead costs incurred on account were $80,500. 6. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 7. Goods costing $88,000 were completed and transferred to finished goods. 8. Finished goods costing $75,000 to manufacture were sold on account for $103,000. Instructions Journalize the transactions.

Answer 2

Question

Chapter 13, Problem 1Q

To determine

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called cash flow statement.

Determine the purpose of the cash flow statement.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The cash flow statement is prepared to study the net cash position of the company. It forms an integral part of the annual financial report.

Explanation of Solution

Cash flow statement is a report that shows the net cash inflows and outflows due to the company’s business operations and thus represents the liquidity position of the company. Various business activities are divided into Operating, Investing and Financial activities and the cash inflows and outflows under these broad headings are classified.

It thus shows how the company manages its cash liquidity.

Broad purposed can be enumerated as below −

Used to calculate the accounts receivables turnover − that is how fast the cash is received from the debtors.
Used to calculate the accounts payables turnover − that is how fast is the cash paid to the vendors to reduce the net outstanding.
Used to calculate the net change in the opening cash and the closing cash balance during the year.
Used to calculate how much of the inventory is converted into real cash as compared to previous year’s cash flow statement.

Conclusion

The purposes of the cash flow statement are thus briefly summarized.

Want to see more full solutions like this?

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

Answer 3

Question

Chapter 13, Problem 1Q

To determine

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called cash flow statement.

Determine the purpose of the cash flow statement.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The cash flow statement is prepared to study the net cash position of the company. It forms an integral part of the annual financial report.

Explanation of Solution

Cash flow statement is a report that shows the net cash inflows and outflows due to the company’s business operations and thus represents the liquidity position of the company. Various business activities are divided into Operating, Investing and Financial activities and the cash inflows and outflows under these broad headings are classified.

It thus shows how the company manages its cash liquidity.

Broad purposed can be enumerated as below −

Used to calculate the accounts receivables turnover − that is how fast the cash is received from the debtors.
Used to calculate the accounts payables turnover − that is how fast is the cash paid to the vendors to reduce the net outstanding.
Used to calculate the net change in the opening cash and the closing cash balance during the year.
Used to calculate how much of the inventory is converted into real cash as compared to previous year’s cash flow statement.

Conclusion

The purposes of the cash flow statement are thus briefly summarized.

Want to see more full solutions like this?

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

Answer 4

Question

Chapter 13, Problem 1Q

To determine

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called cash flow statement.

Determine the purpose of the cash flow statement.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The cash flow statement is prepared to study the net cash position of the company. It forms an integral part of the annual financial report.

Explanation of Solution

Cash flow statement is a report that shows the net cash inflows and outflows due to the company’s business operations and thus represents the liquidity position of the company. Various business activities are divided into Operating, Investing and Financial activities and the cash inflows and outflows under these broad headings are classified.

It thus shows how the company manages its cash liquidity.

Broad purposed can be enumerated as below −

Used to calculate the accounts receivables turnover − that is how fast the cash is received from the debtors.
Used to calculate the accounts payables turnover − that is how fast is the cash paid to the vendors to reduce the net outstanding.
Used to calculate the net change in the opening cash and the closing cash balance during the year.
Used to calculate how much of the inventory is converted into real cash as compared to previous year’s cash flow statement.

Conclusion

The purposes of the cash flow statement are thus briefly summarized.

Want to see more full solutions like this?

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

Answer 5

Chapter 13, Problem 1Q

To determine

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called cash flow statement.

Determine the purpose of the cash flow statement.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The cash flow statement is prepared to study the net cash position of the company. It forms an integral part of the annual financial report.

Explanation of Solution

Cash flow statement is a report that shows the net cash inflows and outflows due to the company’s business operations and thus represents the liquidity position of the company. Various business activities are divided into Operating, Investing and Financial activities and the cash inflows and outflows under these broad headings are classified.

It thus shows how the company manages its cash liquidity.

Broad purposed can be enumerated as below −

Used to calculate the accounts receivables turnover − that is how fast the cash is received from the debtors.
Used to calculate the accounts payables turnover − that is how fast is the cash paid to the vendors to reduce the net outstanding.
Used to calculate the net change in the opening cash and the closing cash balance during the year.
Used to calculate how much of the inventory is converted into real cash as compared to previous year’s cash flow statement.

Conclusion

The purposes of the cash flow statement are thus briefly summarized.

Answer 6

Chapter 13, Problem 1Q

To determine

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called cash flow statement.

Determine the purpose of the cash flow statement.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The cash flow statement is prepared to study the net cash position of the company. It forms an integral part of the annual financial report.

Explanation of Solution

Cash flow statement is a report that shows the net cash inflows and outflows due to the company’s business operations and thus represents the liquidity position of the company. Various business activities are divided into Operating, Investing and Financial activities and the cash inflows and outflows under these broad headings are classified.

It thus shows how the company manages its cash liquidity.

Broad purposed can be enumerated as below −

Used to calculate the accounts receivables turnover − that is how fast the cash is received from the debtors.
Used to calculate the accounts payables turnover − that is how fast is the cash paid to the vendors to reduce the net outstanding.
Used to calculate the net change in the opening cash and the closing cash balance during the year.
Used to calculate how much of the inventory is converted into real cash as compared to previous year’s cash flow statement.

Conclusion

The purposes of the cash flow statement are thus briefly summarized.

Answer 7

Chapter 13, Problem 1Q

To determine

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called cash flow statement.

Determine the purpose of the cash flow statement.

Answer 8

Expert Solution & Answer

Answer to Problem 1Q

Solution: The cash flow statement is prepared to study the net cash position of the company. It forms an integral part of the annual financial report.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Cash flow statement is a report that shows the net cash inflows and outflows due to the company’s business operations and thus represents the liquidity position of the company. Various business activities are divided into Operating, Investing and Financial activities and the cash inflows and outflows under these broad headings are classified.

It thus shows how the company manages its cash liquidity.

Broad purposed can be enumerated as below −

Used to calculate the accounts receivables turnover − that is how fast the cash is received from the debtors.
Used to calculate the accounts payables turnover − that is how fast is the cash paid to the vendors to reduce the net outstanding.
Used to calculate the net change in the opening cash and the closing cash balance during the year.
Used to calculate how much of the inventory is converted into real cash as compared to previous year’s cash flow statement.

Answer 12

Conclusion

The purposes of the cash flow statement are thus briefly summarized.

Answer 13

Ch. 13.A - Prob. 1E Ch. 13.A - Prob. 2E Ch. 13.A - Prob. 3E Ch. 13.A - Prob. 4E Ch. 13.A - Prob. 5P Ch. 13.A - Prob. 6P Ch. 13.A - Prob. 7P Ch. 13 - Prob. 1Q Ch. 13 - Prob. 2Q Ch. 13 - Prob. 3Q

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called cash flow statement. Determine the purpose of the cash flow statement.

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called cash flow statement. Determine the purpose of the cash flow statement.

Answer to Problem 1Q

Explanation of Solution

Want to see more full solutions like this?

Chapter 13 Solutions

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called cash flow statement.

Determine the purpose of the cash flow statement.