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. Cash flows from operating activities: These are the cash produced by the normal business operations. Indirect method: Under this method, the following amounts are to be adjusted from the Net Incometo calculate the net cash provided from operating activities . Cash flows from operating activities (Indirect method) Add: Decrease in current assets Increase in current liability Depreciation expense and amortization expense Loss on sale of plant assets Deduct: Increase in current assets Decrease in current liabilities Gain on sale of plant assets Net cash provided from or used by operating activities The below table shows the way of calculation of cash flows from operating activities: To Determine: The amount of gain or loss on the sale.

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Answer 1

Question

Chapter 14, Problem 6DQ

A.

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.

Cash flows from operating activities: These are the cash produced by the normal business operations.

Indirect method: Under this method, the following amounts are to be adjusted from the Net Incometo calculate the net cash provided from operating activities.

Cash flows from operating activities (Indirect method)

Add: Decrease in current assets
         Increase in current liability
         Depreciation expense and amortization expense
         Loss on sale of plant assets

Deduct: Increase in current assets
              Decrease in current liabilities
              Gain on sale of plant assets
Net cash provided from or used by operating activities

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

To Determine: The amount of gain or loss on the sale.

B.

To determine

The effect of the transaction on cash flows.

C.

To determine

The reporting of the transactions on the statement of cash flows under indirect method.

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Financial Accounting

Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives a $184,500 salary working full time for Angels Corporation. Angels Corporation reported $418,000 of taxable business income for the year. Before considering his business income allocation from Angels and the self-employment tax deduction (if any), Mason's adjusted gross income is $184,500 (all salary from Angels Corporation). Mason claims $59,000 in itemized deductions. Answer the following questions for Mason. c. b. Assuming the business income allocated to Mason is income from a specified service trade or business, except that Angels Corporation reported $168,000 of taxable business income for the year. What is Mason's deduction for qualified business income? Ignore the wage-based limitation when computing the deduction.

Please give me true answer this financial accounting question

Answer 2

Question

Chapter 14, Problem 6DQ

A.

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.

Cash flows from operating activities: These are the cash produced by the normal business operations.

Indirect method: Under this method, the following amounts are to be adjusted from the Net Incometo calculate the net cash provided from operating activities.

Cash flows from operating activities (Indirect method)

Add: Decrease in current assets
         Increase in current liability
         Depreciation expense and amortization expense
         Loss on sale of plant assets

Deduct: Increase in current assets
              Decrease in current liabilities
              Gain on sale of plant assets
Net cash provided from or used by operating activities

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

To Determine: The amount of gain or loss on the sale.

B.

To determine

The effect of the transaction on cash flows.

C.

To determine

The reporting of the transactions on the statement of cash flows under indirect method.

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Answer 3

Question

Chapter 14, Problem 6DQ

A.

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.

Cash flows from operating activities: These are the cash produced by the normal business operations.

Indirect method: Under this method, the following amounts are to be adjusted from the Net Incometo calculate the net cash provided from operating activities.

Cash flows from operating activities (Indirect method)

Add: Decrease in current assets
         Increase in current liability
         Depreciation expense and amortization expense
         Loss on sale of plant assets

Deduct: Increase in current assets
              Decrease in current liabilities
              Gain on sale of plant assets
Net cash provided from or used by operating activities

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

To Determine: The amount of gain or loss on the sale.

B.

To determine

The effect of the transaction on cash flows.

C.

To determine

The reporting of the transactions on the statement of cash flows under indirect method.

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Answer 4

Question

Chapter 14, Problem 6DQ

A.

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.

Cash flows from operating activities: These are the cash produced by the normal business operations.

Indirect method: Under this method, the following amounts are to be adjusted from the Net Incometo calculate the net cash provided from operating activities.

Cash flows from operating activities (Indirect method)

Add: Decrease in current assets
         Increase in current liability
         Depreciation expense and amortization expense
         Loss on sale of plant assets

Deduct: Increase in current assets
              Decrease in current liabilities
              Gain on sale of plant assets
Net cash provided from or used by operating activities

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

To Determine: The amount of gain or loss on the sale.

B.

To determine

The effect of the transaction on cash flows.

C.

To determine

The reporting of the transactions on the statement of cash flows under indirect method.

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Answer 5

Chapter 14, Problem 6DQ

A.

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.

Cash flows from operating activities: These are the cash produced by the normal business operations.

Indirect method: Under this method, the following amounts are to be adjusted from the Net Incometo calculate the net cash provided from operating activities.

Cash flows from operating activities (Indirect method)

Add: Decrease in current assets
         Increase in current liability
         Depreciation expense and amortization expense
         Loss on sale of plant assets

Deduct: Increase in current assets
              Decrease in current liabilities
              Gain on sale of plant assets
Net cash provided from or used by operating activities

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

To Determine: The amount of gain or loss on the sale.

B.

To determine

The effect of the transaction on cash flows.

C.

To determine

The reporting of the transactions on the statement of cash flows under indirect method.

Answer 6

Chapter 14, Problem 6DQ

A.

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.

Cash flows from operating activities: These are the cash produced by the normal business operations.

Indirect method: Under this method, the following amounts are to be adjusted from the Net Incometo calculate the net cash provided from operating activities.

Cash flows from operating activities (Indirect method)

Add: Decrease in current assets
         Increase in current liability
         Depreciation expense and amortization expense
         Loss on sale of plant assets

Deduct: Increase in current assets
              Decrease in current liabilities
              Gain on sale of plant assets
Net cash provided from or used by operating activities

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

To Determine: The amount of gain or loss on the sale.

Answer 7

Chapter 14, Problem 6DQ

A.

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.

Cash flows from operating activities: These are the cash produced by the normal business operations.

Indirect method: Under this method, the following amounts are to be adjusted from the Net Incometo calculate the net cash provided from operating activities.

Cash flows from operating activities (Indirect method)

Add: Decrease in current assets
         Increase in current liability
         Depreciation expense and amortization expense
         Loss on sale of plant assets

Deduct: Increase in current assets
              Decrease in current liabilities
              Gain on sale of plant assets
Net cash provided from or used by operating activities

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

To Determine: The amount of gain or loss on the sale.

Answer 8

B.

To determine

The effect of the transaction on cash flows.

Answer 9

B.

To determine

The effect of the transaction on cash flows.

Answer 10

C.

To determine

The reporting of the transactions on the statement of cash flows under indirect method.

Answer 11

C.

To determine

The reporting of the transactions on the statement of cash flows under indirect method.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 14 - Prob. 1DQ Ch. 14 - Prob. 2DQ Ch. 14 - A corporation issued 2,000,000 of common stock in...Ch. 14 - A retail business, using the accrual method of...Ch. 14 - If salaries payable was 100,000 at the beginning...Ch. 14 - Prob. 6DQ Ch. 14 - A corporation issued 2,000,000 of 20-year bonds...Ch. 14 - Fully depreciated equipment costing 50,000 was...Ch. 14 - Prob. 9DQ Ch. 14 - Name five common major classes of operating cash...

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 of the company.

The effect of the transaction on cash flows.

The reporting of the transactions on the statement of cash flows under indirect method.

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Chapter 14 Solutions