Explanation The statement of cash flows for W Incorporation for the year ended December 31, 2015: W Incorporation Statement of Cash Flows (Partial)-Direct Method For the year ended December 31, 2015 Details Amount ($) Amount ($) Cash flows from operating activities: Receipts: Collections from customers 795,000 Interest and dividend received 27,000 Total cash receipts 822,000 Payments: Cash paid suppliers and employees (635,000) Interest paid (19,000) Income taxes paid (71,000) Total cash payments (725,000) Net cash provided by operating activities 97,000 Cash flows from investing activities: Proceeds from sale of plant assets 9,000 Collections on loans 4,000 Loans made to borrowers (5,000) Cash paid to acquire plat assets (21,000) Net cash used in investing activities (13,000) Cash flows from financing activities: Proceeds from short-term borrowing 10,000 Cash payment of dividends (55,000) Net cash provided by financing activities (45,000) Net increase (Decrease) in Cash 39,000 Cash balance, January 1, 2015 35,800 Cash balance, December 31, 2015 $74,800 Table (1) Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities. Cash flows from operating activities: Cash flows from operating activity represent the net cash flows from the general operation of the business by comparing the cash receipt and cash payments. Direct method: The direct method uses the cash basis of accounting for the preparation of the statement of cash flows...

17th Edition

ISBN: 9780078025778

Author: Jan Williams, Susan Haka, Mark S Bettner, Joseph V Carcello

Publisher: McGraw-Hill Education

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Chapter 13, Problem 7E

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Prepare the statement of cash flows for W Incorporation for the year ended December 31, 2015.

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Chapter 13 Solutions

Financial & Managerial Accounting

Ch. 13 - Prob. 1STQ Ch. 13 - 2. Which of the following is not included in the...Ch. 13 - Prob. 3STQ Ch. 13 - Prob. 4STQ Ch. 13 - Prob. 5STQ Ch. 13 - Prob. 6STQ Ch. 13 - Prob. 1DQ Ch. 13 - Prob. 2DQ Ch. 13 - Prob. 3DQ Ch. 13 - Prob. 4DQ

Ch. 13 - 5. In the long run, is it more important for a...Ch. 13 - 6. Of the three types of business activities...Ch. 13 - Prob. 7DQ Ch. 13 - Prob. 8DQ Ch. 13 - Prob. 9DQ Ch. 13 - Prob. 10DQ Ch. 13 - Prob. 11DQ Ch. 13 - Prob. 12DQ Ch. 13 - Prob. 13DQ Ch. 13 - Prob. 14DQ Ch. 13 - Prob. 15DQ Ch. 13 - Prob. 1BE Ch. 13 - BRIEF EXERCISE 13.2 Cash Flows from Operations...Ch. 13 - BRIEF EXERCISE 13.3 Cash Flows from Operations...Ch. 13 - Prob. 4BE Ch. 13 - BRIEF EXERCISE 13.5 Cash Flows from Investing Old...Ch. 13 - Prob. 6BE Ch. 13 - Prob. 7BE Ch. 13 - Prob. 8BE Ch. 13 - Prob. 9BE Ch. 13 - Prob. 10BE Ch. 13 - EXERCISE 13.1 Using a Statement of Cash...Ch. 13 - EXERCISE 13.2 Using a Statement of Cash Flows Auto...Ch. 13 - EXERCISE 13.3 Computing Cash Flows An analysis of...Ch. 13 - EXERCISE 13.4 Comparing Net Sales and Cash...Ch. 13 - Prob. 5E Ch. 13 - EXERCISE 13.6 Reporting Lending Activities and...Ch. 13 - Prob. 7E Ch. 13 - Prob. 8E Ch. 13 - Prob. 9E Ch. 13 - Prob. 10E Ch. 13 - Prob. 11E Ch. 13 - EXERCISE 13.12 Classifying Cash Flows Among the...Ch. 13 - EXERCISE 13.13 Cash Flows from Investing...Ch. 13 - Prob. 14E Ch. 13 - Prob. 15E Ch. 13 - Prob. 1AP Ch. 13 - Prob. 2AP Ch. 13 - Prob. 3AP Ch. 13 - Prob. 4AP Ch. 13 - Prob. 5AP Ch. 13 - Prob. 6AP Ch. 13 - Prob. 7AP Ch. 13 - Prob. 8AP Ch. 13 - Prob. 1BP Ch. 13 - Prob. 2BP Ch. 13 - Prob. 3BP Ch. 13 - Prob. 4BP Ch. 13 - Prob. 5BP Ch. 13 - Prob. 6BP Ch. 13 - Prob. 7BP Ch. 13 - Prob. 8BP Ch. 13 - Prob. 1CTC Ch. 13 - Prob. 2CTC Ch. 13 - Prob. 3CTC Ch. 13 - Prob. 4CTC

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