Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 13, Problem 2ADM
A.
To determine
Statement of
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
Free cash flow describes the net cash provided from operating activities after making required adjustments for dividends and capital expenditures. In other words, it is the cash flow arrived after making payment for capital expenditures and dividend payments.
To Determine: The free cash flow.
B.
To determine
To Compute: The ratio of free cash flow to sales.
C.
To determine
Whether the free cash flow information indicate financial stress.
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A. Sold the building for $120,000 and paid the loan.
B. Collected $10,000 from the accounts receivable. Remainder is uncollectible
C. Sold the equipment for $8,000
D. Paid the salaries and taxes payable.
E. Sold all remaining inventory for $8,000
F. Paid liquidation costs.
G. Distributed settlement to remaining creditors
Bottomless Pit
Statement of Realization and Liquidation
For the Month Ended May 31, 200X
Non Cash
Loan
Salary
Liq Costs
Taxes
Accounts
Cash
Assets
Payable
Payable
Payable
Payable
Payable
Deficit
Book Balances May 1
$2,000
$188,000
$115,000
$5,000
$5,000
$10,000
$80,000
($25,000)
Sold building and paid loan
Collected accounts receivable
Sold equipment
Paid salaries and taxes
Sold inventory
Paid liquidation costs
Paid settlement to creditors
Book balances May 31
subject:accounting
Assets
$ 64,900
88,878
$ 83,5ee
68,625
261,8e0
Cash
Accounts receivable
Inventory
Prepaid expenses
298,656
1,310
437,736
147,500
2,095
408,e20
118,e00
Total current assets
Equipment
Accum. depreciation-Equipment
(41,625)
$ 543,611
(51,e00)
$ 475,020
Total assets
Liabilities and Equity
Accounts payable
Short-term notes payable
$ 63,141
13,000
76,141
6e,000
136,141
$ 129,675
8,e0e
Total current liabilities
137,675
58,750
Long-term notes payable
Total liabilities
196,425
Equity
Connon stock, $5 par value
Paid-in capital in excess of par, connon stock
Retained earnings
160, 250
76 , 77ב
52,500
177,220
118,345
$ 475,020
Total liabilities and equity
$ 543,611
FORTEN COMPANY
Incone Statement
For Current Year Ended Decenber 31
Sales
$ 632,500
Cost of goods sold
Gross profit
Operating expenses
Depreciation expense
Other expenses
Other gains (losses)
Loss on sale of equipment
295,eee
337,5ee
$ 30,75e
142,480
173,158
(15,125)
149.225
38,250
$ 110,975
Income before taxes
Income taxes expense
Net…
Chapter 13 Solutions
Financial & Managerial Accounting
Ch. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - A corporation issued 2,000,000 of common stock in...Ch. 13 - A retail business, using the accrual method of...Ch. 13 - If salaries payable was 100,000 at the beginning...Ch. 13 - Prob. 6DQCh. 13 - A corporation issued 2,000,000 of 20-year bonds...Ch. 13 - Fully depreciated equipment costing 50,000 was...Ch. 13 - Prob. 9DQCh. 13 - Name five common major classes of operating cash...
Ch. 13 - Classifying cash flows Identify whether each of...Ch. 13 - Prob. 13.2BECh. 13 - Prob. 13.3BECh. 13 - Prob. 13.4BECh. 13 - Land transactions on the statement of cash flows...Ch. 13 - Common stock transactions on the statement of cash...Ch. 13 - Prob. 13.7BECh. 13 - Prob. 13.8BECh. 13 - Prob. 13.1EXCh. 13 - Effect of transactions on cash flows State the...Ch. 13 - Classifying cash flows Identify the type of cash...Ch. 13 - Prob. 13.4EXCh. 13 - Prob. 13.5EXCh. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Prob. 13.8EXCh. 13 - Reporting changes in equipment on statement of...Ch. 13 - Prob. 13.10EXCh. 13 - Determining cash payments to stockholders The...Ch. 13 - Prob. 13.12EXCh. 13 - Reporting land acquisition for cash and mortgage...Ch. 13 - Prob. 13.14EXCh. 13 - Prob. 13.15EXCh. 13 - Prob. 13.16EXCh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsindirect method List the...Ch. 13 - Prob. 13.19EXCh. 13 - Prob. 13.20EXCh. 13 - Cash flows from operating activities direct method...Ch. 13 - Prob. 13.22EXCh. 13 - Prob. 13.1APRCh. 13 - Prob. 13.2APRCh. 13 - Prob. 13.3APRCh. 13 - Prob. 13.4APRCh. 13 - Statement of cash flows direct method applied to...Ch. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flows indirect method The...Ch. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flows direct method The...Ch. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Prob. 1ADMCh. 13 - Prob. 2ADMCh. 13 - Prob. 3ADMCh. 13 - Priceline: Free cash flow Priceline Group, Inc. is...Ch. 13 - Prob. 13.1TIFCh. 13 - Prob. 13.3TIF
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