Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Chapter 13, Problem 3MAD
a.
To determine
Determine the
b.
To determine
Compute the ratio of free cash flow to sales.
c.
To determine
Identify whether the free cash flow information indicate financial stress.
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During a recent year, Nicole’s Getaway Spa (NGS) reported net income of $2,300. The companyreported the following activities:a. Increase in inventory of $400.b. Depreciation of $3,000.c. Increase of $2,170 in prepaid expenses.d. Payments of $4,600 on long-term debt.e. Purchased new spa equipment for $7,582.f. Payments on accounts payable exceeded purchases by $320.g. Collections on accounts receivable exceeded credit sales by $859.h. Issued $10,000 of common stock.Required:Based on this information, prepare a statement of cash flows for the year ended December 31 usingthe indirect method. Assume the cash balance at the beginning of the year was $7,000.
Use the financial statements of Heifer Sports Inc. to find the information below for Heifer. (Use 365 days a year. Round all answers to
2 decimal places except $ amounts.)
Income Statement
Sales
Cost of goods sold
Depreciation
Selling and administrative expenses
EBIT
Interest expense
Taxable income
Taxes
Net income
Balance Sheet, Year-End
Assets
Cash
Accounts receivable
Inventory
Total current assets
Fixed assets
Total assets
Liabilities and Stockholders' Equity
Accounts payable
Short-term debt
Total current liabilities
Long-term bonds
Total liabilities
2020
$ 5,720,000
3,010,000
298, 200
1,597,000
$
$
$
814,800
167,000
647,800
293,500
354,300
Common stock
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
$
$
2020
$ 1,095,700
2,876,000
$ 3,971,700
318,300
496,000
814,300
1,913,700
$ 2,728,000
$
$
43,200 $ 81,000
604,000 1,404,300
448,500
976,800
$ 2,462,100
5,752,000
$ 8,214,100
2019
311,400 $
932,300
$ 1,243,700
$ 3,971,700
$ 990,000
1,215,300
$…
Chapter 13 Solutions
Financial And Managerial Accounting
Ch. 13 - What is the principal disadvantage of the direct...Ch. 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 - Prob. 5DQCh. 13 - A long-term investment in bonds with a cost of...Ch. 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. 2BECh. 13 - Prob. 3BECh. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Land transactions on the statement of cash flows...Ch. 13 - Common stock transactions on the statement of cash...Ch. 13 - Prob. 7BECh. 13 - Appendix 2 Cash received from customersdirect...Ch. 13 - Appendix 2 Cash payments for merchandisedirect...Ch. 13 - Prob. 1ECh. 13 - Effect of transactions on cash flows State the...Ch. 13 - Classifying cash flows Identify the type of cash...Ch. 13 - Prob. 4ECh. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Prob. 7ECh. 13 - Reporting changes in equipment on statement of...Ch. 13 - Reporting changes in equipment on statement of...Ch. 13 - Reporting land transactions on statement of cash...Ch. 13 - Determining cash payments to stockholders The...Ch. 13 - Prob. 12ECh. 13 - Reporting land acquisition for cash and mortgage...Ch. 13 - Reporting issuance and retirement of long-term...Ch. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsindirect method List the...Ch. 13 - Prob. 19ECh. 13 - Prob. 20ECh. 13 - Prob. 21ECh. 13 - Prob. 22ECh. 13 - Prob. 1PACh. 13 - Prob. 2PACh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsdirect method The...Ch. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Prob. 1PBCh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsdirect method The...Ch. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Analyze and compare Amazon.com, Best Buy, and...Ch. 13 - Analyze and compare Apple, Coca-Cola, and Verizon...Ch. 13 - Prob. 3MADCh. 13 - Prob. 4MADCh. 13 - Prob. 5MADCh. 13 - Ethics in Action Head Donuts Inc. is a retailer of...Ch. 13 - Prob. 3TIFCh. 13 - Using the statement of cash flows You are...
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