Cash flow statement: A cash flow statement can be defined as a statement explaining the cash provided or used for different business activities like, operating activities, investing activities and financing activities. 1. Cash flow from operating activities: The operating activities are the revenue generating activities of the business. The cash flow related to these activities are cash received from customers, cash paid for inventory, cash paid for other expenses, cash paid for income taxes etc. When cash receipts and cash payments are used for calculating cash flow from operating activities, this method is termed as direct method. When adjustments like depreciation expenses, increase or decrease in current assets or current liabilities are added or deducted to net income and cash flow from operating activities is calculated, it is termed as indirect method . 2. Cash flow from Investing activities: The cash flow from investing activities can be defined as the activities related the sale and purchase of fixed assets. 3. Cash flow from Financing activities: The cash flow from financing activities can be defined as the cash flow related to the financing generating activities of the business like issue of common stock, payment or new issue of loan, notes payable etc. Requirement 1 To Prepare: Cash Flow statement for McDonald December 31, 2016

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Answer 1

Question

Chapter 16, Problem P16.41BPGB

To determine

Concept Introduction:

Cash flow statement:

A cash flow statement can be defined as a statement explaining the cash provided or used for different business activities like, operating activities, investing activities and financing activities.

1. Cash flow from operating activities:

The operating activities are the revenue generating activities of the business. The cash flow related to these activities are cash received from customers, cash paid for inventory, cash paid for other expenses, cash paid for income taxes etc.

When cash receipts and cash payments are used for calculating cash flow from operating activities, this method is termed as direct method.

When adjustments like depreciation expenses, increase or decrease in current assets or current liabilities are added or deducted to net income and cash flow from operating activities is calculated, it is termed as indirect method.

2. Cash flow from Investing activities:

The cash flow from investing activities can be defined as the activities related the sale and purchase of fixed assets.

3. Cash flow from Financing activities:

The cash flow from financing activities can be defined as the cash flow related to the financing generating activities of the business like issue of common stock, payment or new issue of loan, notes payable etc.

Requirement 1

To Prepare:

Cash Flow statement for McDonald December 31, 2016

To determine

Requirement 2

To explain:

The learning from this problem that will help to evaluate an investment

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Fairfield Company's payroll costs for the most recent month are summarized here: Item Hourly labor unges Description 920 hours $27 per hour 190 hours for Job 101 340 hours for Job 102 Factory supervision Production engineer Factory Janitorial work Selling, general, and administrative salaries Total payroll costs Required: 390 hours for Job 103 Total Cost $ 5,130 9,180 10,530 $ 24,840 4,350 7,100 1,200 8,800 $ 46,298 1. & 2. Prepare the journal entries for payroll and to apply manufacturing overhead to production. The company applies manufacturing overhead to products at a predetermined rate of $54 per direct labor hour Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet A B Record Fairfield Company's payroll costs to be paid at a later date. Note Enter debits before credits. S.No Date 1 Account Title Debit Credit

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L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: Now assume that 5% of the L.L. Bean boots are returned by customers for various reasons. L. Bean has a 100% refund policy for returns, no matter what the reason. What would the journal entry be to accrue L.L. Bean's sales returns for this one pair of boots?

Answer 2

Question

Chapter 16, Problem P16.41BPGB

To determine

Concept Introduction:

Cash flow statement:

A cash flow statement can be defined as a statement explaining the cash provided or used for different business activities like, operating activities, investing activities and financing activities.

1. Cash flow from operating activities:

The operating activities are the revenue generating activities of the business. The cash flow related to these activities are cash received from customers, cash paid for inventory, cash paid for other expenses, cash paid for income taxes etc.

When cash receipts and cash payments are used for calculating cash flow from operating activities, this method is termed as direct method.

When adjustments like depreciation expenses, increase or decrease in current assets or current liabilities are added or deducted to net income and cash flow from operating activities is calculated, it is termed as indirect method.

2. Cash flow from Investing activities:

The cash flow from investing activities can be defined as the activities related the sale and purchase of fixed assets.

3. Cash flow from Financing activities:

The cash flow from financing activities can be defined as the cash flow related to the financing generating activities of the business like issue of common stock, payment or new issue of loan, notes payable etc.

Requirement 1

To Prepare:

Cash Flow statement for McDonald December 31, 2016

To determine

Requirement 2

To explain:

The learning from this problem that will help to evaluate an investment

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 16, Problem P16.41BPGB

To determine

Concept Introduction:

Cash flow statement:

A cash flow statement can be defined as a statement explaining the cash provided or used for different business activities like, operating activities, investing activities and financing activities.

1. Cash flow from operating activities:

The operating activities are the revenue generating activities of the business. The cash flow related to these activities are cash received from customers, cash paid for inventory, cash paid for other expenses, cash paid for income taxes etc.

When cash receipts and cash payments are used for calculating cash flow from operating activities, this method is termed as direct method.

When adjustments like depreciation expenses, increase or decrease in current assets or current liabilities are added or deducted to net income and cash flow from operating activities is calculated, it is termed as indirect method.

2. Cash flow from Investing activities:

The cash flow from investing activities can be defined as the activities related the sale and purchase of fixed assets.

3. Cash flow from Financing activities:

The cash flow from financing activities can be defined as the cash flow related to the financing generating activities of the business like issue of common stock, payment or new issue of loan, notes payable etc.

Requirement 1

To Prepare:

Cash Flow statement for McDonald December 31, 2016

To determine

Requirement 2

To explain:

The learning from this problem that will help to evaluate an investment

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 16, Problem P16.41BPGB

To determine

Concept Introduction:

Cash flow statement:

A cash flow statement can be defined as a statement explaining the cash provided or used for different business activities like, operating activities, investing activities and financing activities.

1. Cash flow from operating activities:

The operating activities are the revenue generating activities of the business. The cash flow related to these activities are cash received from customers, cash paid for inventory, cash paid for other expenses, cash paid for income taxes etc.

When cash receipts and cash payments are used for calculating cash flow from operating activities, this method is termed as direct method.

When adjustments like depreciation expenses, increase or decrease in current assets or current liabilities are added or deducted to net income and cash flow from operating activities is calculated, it is termed as indirect method.

2. Cash flow from Investing activities:

The cash flow from investing activities can be defined as the activities related the sale and purchase of fixed assets.

3. Cash flow from Financing activities:

The cash flow from financing activities can be defined as the cash flow related to the financing generating activities of the business like issue of common stock, payment or new issue of loan, notes payable etc.

Requirement 1

To Prepare:

Cash Flow statement for McDonald December 31, 2016

To determine

Requirement 2

To explain:

The learning from this problem that will help to evaluate an investment

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 16, Problem P16.41BPGB

To determine

Concept Introduction:

Cash flow statement:

A cash flow statement can be defined as a statement explaining the cash provided or used for different business activities like, operating activities, investing activities and financing activities.

1. Cash flow from operating activities:

The operating activities are the revenue generating activities of the business. The cash flow related to these activities are cash received from customers, cash paid for inventory, cash paid for other expenses, cash paid for income taxes etc.

When cash receipts and cash payments are used for calculating cash flow from operating activities, this method is termed as direct method.

When adjustments like depreciation expenses, increase or decrease in current assets or current liabilities are added or deducted to net income and cash flow from operating activities is calculated, it is termed as indirect method.

2. Cash flow from Investing activities:

The cash flow from investing activities can be defined as the activities related the sale and purchase of fixed assets.

3. Cash flow from Financing activities:

The cash flow from financing activities can be defined as the cash flow related to the financing generating activities of the business like issue of common stock, payment or new issue of loan, notes payable etc.

Requirement 1

To Prepare:

Cash Flow statement for McDonald December 31, 2016

To determine

Requirement 2

To explain:

The learning from this problem that will help to evaluate an investment

Answer 6

Chapter 16, Problem P16.41BPGB

To determine

Concept Introduction:

Cash flow statement:

A cash flow statement can be defined as a statement explaining the cash provided or used for different business activities like, operating activities, investing activities and financing activities.

1. Cash flow from operating activities:

The operating activities are the revenue generating activities of the business. The cash flow related to these activities are cash received from customers, cash paid for inventory, cash paid for other expenses, cash paid for income taxes etc.

When cash receipts and cash payments are used for calculating cash flow from operating activities, this method is termed as direct method.

When adjustments like depreciation expenses, increase or decrease in current assets or current liabilities are added or deducted to net income and cash flow from operating activities is calculated, it is termed as indirect method.

2. Cash flow from Investing activities:

The cash flow from investing activities can be defined as the activities related the sale and purchase of fixed assets.

3. Cash flow from Financing activities:

The cash flow from financing activities can be defined as the cash flow related to the financing generating activities of the business like issue of common stock, payment or new issue of loan, notes payable etc.

Requirement 1

To Prepare:

Cash Flow statement for McDonald December 31, 2016

Answer 7

Chapter 16, Problem P16.41BPGB

To determine

Concept Introduction:

Cash flow statement:

A cash flow statement can be defined as a statement explaining the cash provided or used for different business activities like, operating activities, investing activities and financing activities.

1. Cash flow from operating activities:

The operating activities are the revenue generating activities of the business. The cash flow related to these activities are cash received from customers, cash paid for inventory, cash paid for other expenses, cash paid for income taxes etc.

When cash receipts and cash payments are used for calculating cash flow from operating activities, this method is termed as direct method.

When adjustments like depreciation expenses, increase or decrease in current assets or current liabilities are added or deducted to net income and cash flow from operating activities is calculated, it is termed as indirect method.

2. Cash flow from Investing activities:

The cash flow from investing activities can be defined as the activities related the sale and purchase of fixed assets.

3. Cash flow from Financing activities:

The cash flow from financing activities can be defined as the cash flow related to the financing generating activities of the business like issue of common stock, payment or new issue of loan, notes payable etc.

Requirement 1

To Prepare:

Cash Flow statement for McDonald December 31, 2016

Answer 8

To determine

Requirement 2

To explain:

The learning from this problem that will help to evaluate an investment

Answer 9

To determine

Requirement 2

To explain:

The learning from this problem that will help to evaluate an investment

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 16 - Prob. 1QC Ch. 16 - Prob. 2QC Ch. 16 - Prob. 3QC Ch. 16 - Prob. 4QC Ch. 16 - Prob. 5QC Ch. 16 - The Plant Assets account and Accumulated...Ch. 16 - Mountain Water Corp issued common stock of $28,000...Ch. 16 - Prob. 8QC Ch. 16 - Maxwell Furniture Center had accounts receivable...Ch. 16 - Prob. 10BQC

Requirement 2 To explain: The learning from this problem that will help to evaluate an investment

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Chapter 16 Solutions

Requirement 2

To explain:

The learning from this problem that will help to evaluate an investment