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1. Cash collections from customers: The sales made for cash or cash sales and cash collected from credit customers indicate cash collections from customers. The transaction in
To compute: Cash collections from customers to ascertain the net
2. Payments for merchandise inventory: The amount paid by the company to merchandise its plan to sell to its customers represents the cash payments for merchandise inventory.
To compute: Cash payments for merchandise inventory to ascertain net cash flow from operating activities.
3. Payments of Other Operating Expenses: Generally the cash payments for operating expenses includes wages and other operating expenses.
To compute: Payment of other operating expense to determine the net cash flow from operating activities.
4. Acquisitions of Property, plant and equipment: It includes amount of cash paid for the purchase of property, plant and equipment.
To Compute: Acquisitions of Property, plant and equipment considering there is no sales of property during the year to ascertain net cash flow from investing activities.
5. Amount of Borrowing: The amount of loan borrowed by the company refers to amount of borrowing. It represents long term liabilities of the company and additional borrowings made during the year.
To Compute: Amount of borrowing of A-one mobile Homes to determine the cash flow from financing activities.
6. Cash receipts from the issuance of common stock: It represents the net increase in the common stock and additional paid up capitals made during the year.
To Compute: Cash receipts from the issuance of common stock to determine the cash flow from financing activities.
7. Payments of Cash Dividends: Cash dividends represents the dividends paid during the year. Statement of cash flows only includes cash transactions and dividends are recorded only when it is paid and not when it is declared.
To Compute: Payment of cash dividends with
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Chapter 16 Solutions
Horngren's Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (12th Edition)
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