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Fundamental Accounting Principles
24th Edition
ISBN: 9781259916960
Author: Wild, John J., Shaw, Ken W.
Publisher: Mcgraw-hill Education,
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Question
Chapter 16, Problem 4BPSB
To determine
Concept Introduction:
Cash Flow statement:
The Cash flow statement shows the movement of cash during a particular period. The
- Cash flows from operating activities
- Cash Flows from investing activities
- Cash flows from financing activities
(Note: Cash flows from operating activities can be prepared using direct or indirect method)
To Prepare:
The Cash Flow statement using the indirect method and Analysis of changes
Expert Solution & Answer
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Answer to Problem 4BPSB
The Cash Flow statement using the indirect method and Analysis of changes is as follows:
GAZELLE CORPORATION | ||
Cash Flow Statements | ||
for the year ended Dec. 31, 2017 | ||
Cash flows from operating activities: | ||
Net income | $ 158,100 | |
Add: | $ 38,600 | |
Add: Loss on sale of equipment | $ 2,100 | |
Add: Decrease in | $ 3,650 | |
Add: Decrease in Inventory (250700-240600) | $ 10,100 | |
Add: Decrease in Prepaid Expense (17000-15100) | $ 1,900 | |
Less: Decrease in Accounts Payable (102000-17750) | $ (84,250) | |
Cash provided by operating activities | $ 130,200 | |
Cash Flows from investing activities: | ||
Cash Received from Sale of Equipment | $ 26,050 | |
Cash paid for Purchase of Equipment | $ (43,250) | |
Cash used by investing activities: | $ (17,200) | |
Cash flows from financing activities: | ||
Cash Receipts from Short term notes payable | $ 5,000 | |
Cash Paid to reduce long term notes payable | $ (47,500) | |
Cash Receipts from Issuance of Stock (3000 Shares*$15) | $ 45,000 | |
Cash Dividends paid | $ (53,600) | |
Cash used by financing activities: | $ (51,100) | |
Net Cash Flows | $ 61,900 | |
Add: Beginning Balance of Cash | $ 61,550 | |
Ending Balance of Cash | $ 123,450 |
Explanation of Solution
The Cash Flow statement using the indirect method and Analysis of changes is explained as follows:
GAZELLE CORPORATION | ||
Cash Flow Statements | ||
for the year ended Dec. 31, 2017 | ||
Cash flows from operating activities: | ||
Net income | $ 158,100 | |
Add: Depreciation Expense | $ 38,600 | |
Add: Loss on sale of equipment | $ 2,100 | |
Add: Decrease in Accounts receivables (80750-77100) | $ 3,650 | |
Add: Decrease in Inventory (250700-240600) | $ 10,100 | |
Add: Decrease in Prepaid Expense (17000-15100) | $ 1,900 | |
Less: Decrease in Accounts Payable (102000-17750) | $ (84,250) | |
Cash provided by operating activities | $ 130,200 | |
Cash Flows from investing activities: | ||
Cash Received from Sale of Equipment | $ 26,050 | |
Cash paid for Purchase of Equipment | $ (43,250) | |
Cash used by investing activities: | $ (17,200) | |
Cash flows from financing activities: | ||
Cash Receipts from Short term notes payable | $ 5,000 | |
Cash Paid to reduce long term notes payable | $ (47,500) | |
Cash Receipts from Issuance of Stock (3000 Shares*$15) | $ 45,000 | |
Cash Dividends paid | $ (53,600) | |
Cash used by financing activities: | $ (51,100) | |
Net Cash Flows | $ 61,900 | |
Add: Beginning Balance of Cash | $ 61,550 | |
Ending Balance of Cash | $ 123,450 |
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Chapter 16 Solutions
Fundamental Accounting Principles
Ch. 16 - Prob. 1DQCh. 16 - Prob. 2DQCh. 16 - What are some financing activities reported on the...Ch. 16 - Prob. 4DQCh. 16 - Prob. 5DQCh. 16 - Prob. 6DQCh. 16 - Prob. 7DQCh. 16 - Prob. 8DQCh. 16 - Prob. 9DQCh. 16 - Prob. 10DQ
Ch. 16 - Prob. 11DQCh. 16 - Prob. 12DQCh. 16 - Prob. 13DQCh. 16 - Prob. 14DQCh. 16 - Prob. 15DQCh. 16 - Transaction classification by activity C1 Classify...Ch. 16 - Prob. 2QSCh. 16 - QS 16-3 Indirect: Computing cash flows from...Ch. 16 - QS 16-4 Indirect: Computing cash flows from...Ch. 16 - QS 16-5 Indirect: Computing cash flows from...Ch. 16 - QS 16-6 Indirect: Computing cash from operations...Ch. 16 - QS 16-7 Indirect: Computing cash from operations...Ch. 16 - QS 16-8 Computing cash from asset sales P3
The...Ch. 16 - Prob. 9QSCh. 16 - QS 16-10 Computing investing cash flows P3
The...Ch. 16 - QS 16-11 Computing investing cash flows P3
Refer...Ch. 16 - Computing cash flows flow investing P3 Compute...Ch. 16 - QS 16-13 Computing cash from asset sales P3 Q...Ch. 16 - QS 16-14 Computing financing cash flows...Ch. 16 - Prob. 15QSCh. 16 - Prob. 16QSCh. 16 - Prob. 17QSCh. 16 - QS 16-18 Indirect: Preparing statement of cash...Ch. 16 - Ma rice la Yahtzee Cluedu
Cash provided (used) by...Ch. 16 - QS 16-20A Recording entries in a spreadsheet P4
A...Ch. 16 - QS 16-21B Direct: Computing cash receipts from...Ch. 16 - QS 16-22B Direct: Computing cash payments to...Ch. 16 - QS 16-23B Direct: Computing cash paid for...Ch. 16 - Prob. 24QSCh. 16 - Prob. 25QSCh. 16 - Prob. 26QSCh. 16 - Prob. 27QSCh. 16 - Prob. 1ECh. 16 - Prob. 2ECh. 16 - Exercise 16-3
Indirect: Reporting and interpreting...Ch. 16 - Exercise 16-4 Indirect: Cash flows from operating...Ch. 16 - Exercise 16-5 Indirect: Cash flows from operating...Ch. 16 - Exercise 16-6 Indirect: Cash flows from operating...Ch. 16 - Exercise 16-7 Indirect: Reporting cash flows from...Ch. 16 - Prob. 8ECh. 16 - Exercise 16-8
Cash flows from financing...Ch. 16 - Exercise 16-10 Reconstructed entries P3
For each...Ch. 16 - Exercise 16-11 Indirect: Preparing statement of...Ch. 16 - Exercise 16-12 Indirect: Preparing statement of...Ch. 16 - Exercise 16-13 Analyzing cash flow on total assets...Ch. 16 - Exercise 16-14A Indirect: Cash flows spreadsheet...Ch. 16 - Exercise 16-14
Direct Cash flow...Ch. 16 - Exercise 16-16BDirect: Computing cash flows P5 For...Ch. 16 - Exercise 16-17B Direct: Preparing statement of...Ch. 16 - Prob. 18ECh. 16 - Prob. 19ECh. 16 - Prob. 20ECh. 16 - Prob. 1APSACh. 16 - Prob. 2APSACh. 16 - Prob. 3APSACh. 16 - Prob. 4APSACh. 16 - Prob. 5APSACh. 16 - Prob. 6APSACh. 16 - Prob. 7APSACh. 16 - Prob. 8APSACh. 16 - Problem 16-1B Indirect Computing cash flows from...Ch. 16 - Prob. 2BPSBCh. 16 - Prob. 3BPSBCh. 16 - Prob. 4BPSBCh. 16 - Prob. 5BPSBCh. 16 - Prob. 6BPSBCh. 16 - Prob. 7BPSBCh. 16 - Problem 16-8BBDirect: Statement of cash flows P5...Ch. 16 - Prob. 16SPCh. 16 - Prob. 1AACh. 16 - Prob. 2AACh. 16 - Prob. 3AACh. 16 - Prob. 1BTNCh. 16 - Prob. 2BTNCh. 16 - BTN 16-3 Access the April 14. 2016. filing of the...Ch. 16 - BTN 16-6 Team members are to coordinate and...Ch. 16 - Prob. 5BTNCh. 16 - Prob. 6BTNCh. 16 - Prob. 7BTN
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