Concept Introduction Cash Flow Statement : Cash Flow Statement is the statement reflecting the flow of Cash & Cash Equivalents. Cash : It includes Cash in Hand & Deposits with Bank. Cash Equivalents : It includes those investments which are short term investment and highly liquid i.e. maturity period is of three months or less. Operating Activities : Operating Activities are the principal revenue generating activities of enterprise. In other words activities that are not financing and investing activities. Sales: Sales includes the amount received from customer by selling the goods and services in the normal course of business. Purchases: It is the amount spent for purchasing the goods meant to be resold. Accounts Receivable : The amount receivable by the company for the sale of goods and services in the normal course of business. It is normally classified under current assets. Accounts Payable: The amount paid against purchase of goods and services in normal course of business. It is normally classified as Current Liabilities. Rules for T-Shape Account: As described above, the Amount received/paid can be calculated by preparing the T-Shape Account. The Rules for preparing the T-Shape Accounts is mentioned below: Nature of Account Debit Side Credit Side Asset Account Increases Decrease Liabilities Account Decreases Increase Revenue Account Decreases Increase Expenses Account Increases Decrease Capital Account Decreases Increase To Calculate: Cash Received from Customer Cash Paid for Rent Cash Paid for Inventory

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Answer 1

Question

Chapter 16, Problem 15E

To determine

Concept Introduction

Cash Flow Statement: Cash Flow Statement is the statement reflecting the flow of Cash & Cash Equivalents.

Cash: It includes Cash in Hand & Deposits with Bank.

Cash Equivalents: It includes those investments which are short term investment and highly liquid i.e. maturity period is of three months or less.

Operating Activities: Operating Activities are the principal revenue generating activities of enterprise. In other words activities that are not financing and investing activities.

Sales: Sales includes the amount received from customer by selling the goods and services in the normal course of business.

Purchases: It is the amount spent for purchasing the goods meant to be resold.

Accounts Receivable: The amount receivable by the company for the sale of goods and services in the normal course of business. It is normally classified under current assets.

Accounts Payable: The amount paid against purchase of goods and services in normal course of business. It is normally classified as Current Liabilities.

Rules for T-Shape Account: As described above, the Amount received/paid can be calculated by preparing the T-Shape Account. The Rules for preparing the T-Shape Accounts is mentioned below:

Nature of Account Debit Side Credit Side
Asset Account
Increases
Decrease
Liabilities Account
Decreases
Increase
Revenue Account
Decreases
Increase
Expenses Account
Increases
Decrease
Capital Account
Decreases
Increase

To Calculate:

Cash Received from Customer

Cash Paid for Rent

Cash Paid for Inventory

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Answer 2

Question

Chapter 16, Problem 15E

To determine

Concept Introduction

Cash Flow Statement: Cash Flow Statement is the statement reflecting the flow of Cash & Cash Equivalents.

Cash: It includes Cash in Hand & Deposits with Bank.

Cash Equivalents: It includes those investments which are short term investment and highly liquid i.e. maturity period is of three months or less.

Operating Activities: Operating Activities are the principal revenue generating activities of enterprise. In other words activities that are not financing and investing activities.

Sales: Sales includes the amount received from customer by selling the goods and services in the normal course of business.

Purchases: It is the amount spent for purchasing the goods meant to be resold.

Accounts Receivable: The amount receivable by the company for the sale of goods and services in the normal course of business. It is normally classified under current assets.

Accounts Payable: The amount paid against purchase of goods and services in normal course of business. It is normally classified as Current Liabilities.

Rules for T-Shape Account: As described above, the Amount received/paid can be calculated by preparing the T-Shape Account. The Rules for preparing the T-Shape Accounts is mentioned below:

Nature of Account Debit Side Credit Side
Asset Account
Increases
Decrease
Liabilities Account
Decreases
Increase
Revenue Account
Decreases
Increase
Expenses Account
Increases
Decrease
Capital Account
Decreases
Increase

To Calculate:

Cash Received from Customer

Cash Paid for Rent

Cash Paid for Inventory

Expert Solution & Answer

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Answer 3

Question

Chapter 16, Problem 15E

To determine

Concept Introduction

Cash Flow Statement: Cash Flow Statement is the statement reflecting the flow of Cash & Cash Equivalents.

Cash: It includes Cash in Hand & Deposits with Bank.

Cash Equivalents: It includes those investments which are short term investment and highly liquid i.e. maturity period is of three months or less.

Operating Activities: Operating Activities are the principal revenue generating activities of enterprise. In other words activities that are not financing and investing activities.

Sales: Sales includes the amount received from customer by selling the goods and services in the normal course of business.

Purchases: It is the amount spent for purchasing the goods meant to be resold.

Accounts Receivable: The amount receivable by the company for the sale of goods and services in the normal course of business. It is normally classified under current assets.

Accounts Payable: The amount paid against purchase of goods and services in normal course of business. It is normally classified as Current Liabilities.

Rules for T-Shape Account: As described above, the Amount received/paid can be calculated by preparing the T-Shape Account. The Rules for preparing the T-Shape Accounts is mentioned below:

Nature of Account Debit Side Credit Side
Asset Account
Increases
Decrease
Liabilities Account
Decreases
Increase
Revenue Account
Decreases
Increase
Expenses Account
Increases
Decrease
Capital Account
Decreases
Increase

To Calculate:

Cash Received from Customer

Cash Paid for Rent

Cash Paid for Inventory

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 16, Problem 15E

To determine

Concept Introduction

Cash Flow Statement: Cash Flow Statement is the statement reflecting the flow of Cash & Cash Equivalents.

Cash: It includes Cash in Hand & Deposits with Bank.

Cash Equivalents: It includes those investments which are short term investment and highly liquid i.e. maturity period is of three months or less.

Operating Activities: Operating Activities are the principal revenue generating activities of enterprise. In other words activities that are not financing and investing activities.

Sales: Sales includes the amount received from customer by selling the goods and services in the normal course of business.

Purchases: It is the amount spent for purchasing the goods meant to be resold.

Accounts Receivable: The amount receivable by the company for the sale of goods and services in the normal course of business. It is normally classified under current assets.

Accounts Payable: The amount paid against purchase of goods and services in normal course of business. It is normally classified as Current Liabilities.

Rules for T-Shape Account: As described above, the Amount received/paid can be calculated by preparing the T-Shape Account. The Rules for preparing the T-Shape Accounts is mentioned below:

Nature of Account Debit Side Credit Side
Asset Account
Increases
Decrease
Liabilities Account
Decreases
Increase
Revenue Account
Decreases
Increase
Expenses Account
Increases
Decrease
Capital Account
Decreases
Increase

To Calculate:

Cash Received from Customer

Cash Paid for Rent

Cash Paid for Inventory

Expert Solution & Answer

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See solution

Answer 5

Chapter 16, Problem 15E

To determine

Concept Introduction

Cash Flow Statement: Cash Flow Statement is the statement reflecting the flow of Cash & Cash Equivalents.

Cash: It includes Cash in Hand & Deposits with Bank.

Cash Equivalents: It includes those investments which are short term investment and highly liquid i.e. maturity period is of three months or less.

Operating Activities: Operating Activities are the principal revenue generating activities of enterprise. In other words activities that are not financing and investing activities.

Sales: Sales includes the amount received from customer by selling the goods and services in the normal course of business.

Purchases: It is the amount spent for purchasing the goods meant to be resold.

Accounts Receivable: The amount receivable by the company for the sale of goods and services in the normal course of business. It is normally classified under current assets.

Accounts Payable: The amount paid against purchase of goods and services in normal course of business. It is normally classified as Current Liabilities.

Rules for T-Shape Account: As described above, the Amount received/paid can be calculated by preparing the T-Shape Account. The Rules for preparing the T-Shape Accounts is mentioned below:

Nature of Account Debit Side Credit Side
Asset Account
Increases
Decrease
Liabilities Account
Decreases
Increase
Revenue Account
Decreases
Increase
Expenses Account
Increases
Decrease
Capital Account
Decreases
Increase

To Calculate:

Cash Received from Customer

Cash Paid for Rent

Cash Paid for Inventory

Answer 6

Chapter 16, Problem 15E

To determine

Concept Introduction

Cash Flow Statement: Cash Flow Statement is the statement reflecting the flow of Cash & Cash Equivalents.

Cash: It includes Cash in Hand & Deposits with Bank.

Cash Equivalents: It includes those investments which are short term investment and highly liquid i.e. maturity period is of three months or less.

Operating Activities: Operating Activities are the principal revenue generating activities of enterprise. In other words activities that are not financing and investing activities.

Sales: Sales includes the amount received from customer by selling the goods and services in the normal course of business.

Purchases: It is the amount spent for purchasing the goods meant to be resold.

Accounts Receivable: The amount receivable by the company for the sale of goods and services in the normal course of business. It is normally classified under current assets.

Accounts Payable: The amount paid against purchase of goods and services in normal course of business. It is normally classified as Current Liabilities.

Rules for T-Shape Account: As described above, the Amount received/paid can be calculated by preparing the T-Shape Account. The Rules for preparing the T-Shape Accounts is mentioned below:

Nature of Account Debit Side Credit Side
Asset Account
Increases
Decrease
Liabilities Account
Decreases
Increase
Revenue Account
Decreases
Increase
Expenses Account
Increases
Decrease
Capital Account
Decreases
Increase

To Calculate:

Cash Received from Customer

Cash Paid for Rent

Cash Paid for Inventory

Answer 7

Chapter 16, Problem 15E

To determine

Concept Introduction

Cash Flow Statement: Cash Flow Statement is the statement reflecting the flow of Cash & Cash Equivalents.

Cash: It includes Cash in Hand & Deposits with Bank.

Cash Equivalents: It includes those investments which are short term investment and highly liquid i.e. maturity period is of three months or less.

Operating Activities: Operating Activities are the principal revenue generating activities of enterprise. In other words activities that are not financing and investing activities.

Sales: Sales includes the amount received from customer by selling the goods and services in the normal course of business.

Purchases: It is the amount spent for purchasing the goods meant to be resold.

Accounts Receivable: The amount receivable by the company for the sale of goods and services in the normal course of business. It is normally classified under current assets.

Accounts Payable: The amount paid against purchase of goods and services in normal course of business. It is normally classified as Current Liabilities.

Rules for T-Shape Account: As described above, the Amount received/paid can be calculated by preparing the T-Shape Account. The Rules for preparing the T-Shape Accounts is mentioned below:

Nature of Account Debit Side Credit Side
Asset Account
Increases
Decrease
Liabilities Account
Decreases
Increase
Revenue Account
Decreases
Increase
Expenses Account
Increases
Decrease
Capital Account
Decreases
Increase

To Calculate:

Cash Received from Customer

Cash Paid for Rent

Cash Paid for Inventory

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

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Answer 11

Ch. 16 - Prob. 1DQ Ch. 16 - Prob. 2DQ Ch. 16 - Prob. 3DQ Ch. 16 - Prob. 4DQ Ch. 16 - Prob. 5DQ Ch. 16 - Prob. 6DQ Ch. 16 - Prob. 7DQ Ch. 16 - Prob. 8DQ Ch. 16 - Prob. 9DQ Ch. 16 - Prob. 10DQ

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Chapter 16 Solutions

Nature of Account	Debit Side	Credit Side
Asset Account	Increases	Decrease
Liabilities Account	Decreases	Increase
Revenue Account	Decreases	Increase
Expenses Account	Increases	Decrease
Capital Account	Decreases	Increase