Statement of cash flows : It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company. Direct method: This method uses the basis of cash for preparing the cash flows statement. Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year. The below table shows the way of calculation of cash flows from operating activities: Cash flows from operating activities (Direct method) Add: Cash receipts. Cash receipt from customer Less : Cash payments: To supplier For operating expenses Income tax expenses Net cash provided from or used by operating activities To Compute : The cash collections from customers.

Question

Want to see the full answer?

Answer 1

Question

Chapter 14, Problem 14.30E

1.

To determine

Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.

Direct method: This method uses the basis of cash for preparing the cash flows statement.

Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.

The below table shows the way of calculation of cash flows from operating activities:

Cash flows from operating activities (Direct method)

Add: Cash receipts.
Cash receipt from customer

Less: Cash payments:
To supplier
For operating expenses
Income tax expenses
Net cash provided from or used by operating activities

To Compute: The cash collections from customers.

2.

To determine

To Compute: The amount of cash payment for merchandise inventory.

3.

To determine

To Compute: The amount of cash payment of operating expenses.

4.

To determine

To Compute: The acquisition of property and equipment.

5.

To determine

To Compute: The amount of borrowings

6.

To determine

To Compute: The cash receipt from issuance of common stock

7.

To determine

To Compute: The payment of cash dividends.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

The financial statements of the Bolton Manufacturing Company reported net sales of $530,000 and account receivable of $68,000 and $32,000 at the beginning of the year and end of the year, respectively. What is the receivables turnover ratio for Bolton?

Ans please

help me to solve this questions

Answer 2

Question

Chapter 14, Problem 14.30E

1.

To determine

Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.

Direct method: This method uses the basis of cash for preparing the cash flows statement.

Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.

The below table shows the way of calculation of cash flows from operating activities:

Cash flows from operating activities (Direct method)

Add: Cash receipts.
Cash receipt from customer

Less: Cash payments:
To supplier
For operating expenses
Income tax expenses
Net cash provided from or used by operating activities

To Compute: The cash collections from customers.

2.

To determine

To Compute: The amount of cash payment for merchandise inventory.

3.

To determine

To Compute: The amount of cash payment of operating expenses.

4.

To determine

To Compute: The acquisition of property and equipment.

5.

To determine

To Compute: The amount of borrowings

6.

To determine

To Compute: The cash receipt from issuance of common stock

7.

To determine

To Compute: The payment of cash dividends.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 14, Problem 14.30E

1.

To determine

Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.

Direct method: This method uses the basis of cash for preparing the cash flows statement.

Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.

The below table shows the way of calculation of cash flows from operating activities:

Cash flows from operating activities (Direct method)

Add: Cash receipts.
Cash receipt from customer

Less: Cash payments:
To supplier
For operating expenses
Income tax expenses
Net cash provided from or used by operating activities

To Compute: The cash collections from customers.

2.

To determine

To Compute: The amount of cash payment for merchandise inventory.

3.

To determine

To Compute: The amount of cash payment of operating expenses.

4.

To determine

To Compute: The acquisition of property and equipment.

5.

To determine

To Compute: The amount of borrowings

6.

To determine

To Compute: The cash receipt from issuance of common stock

7.

To determine

To Compute: The payment of cash dividends.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 14, Problem 14.30E

1.

To determine

Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.

Direct method: This method uses the basis of cash for preparing the cash flows statement.

Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.

The below table shows the way of calculation of cash flows from operating activities:

Cash flows from operating activities (Direct method)

Add: Cash receipts.
Cash receipt from customer

Less: Cash payments:
To supplier
For operating expenses
Income tax expenses
Net cash provided from or used by operating activities

To Compute: The cash collections from customers.

2.

To determine

To Compute: The amount of cash payment for merchandise inventory.

3.

To determine

To Compute: The amount of cash payment of operating expenses.

4.

To determine

To Compute: The acquisition of property and equipment.

5.

To determine

To Compute: The amount of borrowings

6.

To determine

To Compute: The cash receipt from issuance of common stock

7.

To determine

To Compute: The payment of cash dividends.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 14, Problem 14.30E

1.

To determine

Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.

Direct method: This method uses the basis of cash for preparing the cash flows statement.

Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.

The below table shows the way of calculation of cash flows from operating activities:

Cash flows from operating activities (Direct method)

Add: Cash receipts.
Cash receipt from customer

Less: Cash payments:
To supplier
For operating expenses
Income tax expenses
Net cash provided from or used by operating activities

To Compute: The cash collections from customers.

2.

To determine

To Compute: The amount of cash payment for merchandise inventory.

3.

To determine

To Compute: The amount of cash payment of operating expenses.

4.

To determine

To Compute: The acquisition of property and equipment.

5.

To determine

To Compute: The amount of borrowings

6.

To determine

To Compute: The cash receipt from issuance of common stock

7.

To determine

To Compute: The payment of cash dividends.

Answer 6

Chapter 14, Problem 14.30E

1.

To determine

Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.

Direct method: This method uses the basis of cash for preparing the cash flows statement.

Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.

The below table shows the way of calculation of cash flows from operating activities:

Cash flows from operating activities (Direct method)

Add: Cash receipts.
Cash receipt from customer

Less: Cash payments:
To supplier
For operating expenses
Income tax expenses
Net cash provided from or used by operating activities

To Compute: The cash collections from customers.

Answer 7

Chapter 14, Problem 14.30E

1.

To determine

Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.

Direct method: This method uses the basis of cash for preparing the cash flows statement.

Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.

The below table shows the way of calculation of cash flows from operating activities:

Cash flows from operating activities (Direct method)

Add: Cash receipts.
Cash receipt from customer

Less: Cash payments:
To supplier
For operating expenses
Income tax expenses
Net cash provided from or used by operating activities

To Compute: The cash collections from customers.

Answer 8

2.

To determine

To Compute: The amount of cash payment for merchandise inventory.

Answer 9

2.

To determine

To Compute: The amount of cash payment for merchandise inventory.

Answer 10

3.

To determine

To Compute: The amount of cash payment of operating expenses.

Answer 11

3.

To determine

To Compute: The amount of cash payment of operating expenses.

Answer 12

4.

To determine

To Compute: The acquisition of property and equipment.

Answer 13

4.

To determine

To Compute: The acquisition of property and equipment.

Answer 14

5.

To determine

To Compute: The amount of borrowings

Answer 15

5.

To determine

To Compute: The amount of borrowings

Answer 16

6.

To determine

To Compute: The cash receipt from issuance of common stock

Answer 17

6.

To determine

To Compute: The cash receipt from issuance of common stock

Answer 18

7.

To determine

To Compute: The payment of cash dividends.

Answer 19

7.

To determine

To Compute: The payment of cash dividends.

Answer 20

Expert Solution & Answer

Answer 21

Expert Solution & Answer

Answer 22

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 23

Ch. 14 - The purposes of the statement of cash flows are to...Ch. 14 - The main categories of cash flow activities are a....Ch. 14 - Operating activities are most closely related to...Ch. 14 - Which item does not appear on a statement of cash...Ch. 14 - Leather Shop earned net income of 57,000 after...Ch. 14 - The Plant Assets account and Accumulated...Ch. 14 - Mountain Water Corp. issued common stock of 28,000...Ch. 14 - Prob. 8QC Ch. 14 - Prob. 9AQC Ch. 14 - If accrued liabilities increased during the year,...

Solution Summary: The author explains how the statement of cash flows determines the net changes in cash due to the operating, investing, and financing activities.

Concept explainers

Videos

To Compute: The amount of cash payment for merchandise inventory.

To Compute: The amount of cash payment of operating expenses.

To Compute: The acquisition of property and equipment.

To Compute: The amount of borrowings

To Compute: The cash receipt from issuance of common stock

To Compute: The payment of cash dividends.

Want to see the full answer?

Chapter 14 Solutions