The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year. To prepare: The statement of cash flows using the indirect method.

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Answer 1

Question

Chapter 17, Problem 8E

a.

To determine

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.

To prepare: The statement of cash flows using the indirect method.

b.

To determine

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.

To calculate: The free cash flows.

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The following data are taken from the records of F.Shield Company for the year 2020. Prepare a statement of cash flows then determine the following: a. Net cash flow from operating activities b. Net cash flow from investing activities e. Net cash flow from financing activities d. Net increase/decrease in cash e. Cash balance on December 31, 2021 Cash balance on January 1, 2020 in P 308, 000 Provision for bad debts 28, 00 Proceeds from sale of land 950,000 Receivable from customers s00, 000 800, 000 900, 000 Cash purchase of service vehicle Additional investment of owner Rent income received 32, 000 Principal long-term loan paid 600, 000 Cash receipt from customers 600, 000 Depreciation expense 40, 000 Payment of operating expenses 975, 000 Proceeds of BDO loan 350, 000 Dividends income received 23, 000 Asset withdrawal of owner 125, 000

Below is the data for Michael Ski Company . Prepare the cash flows from operating activities in the statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.) David Ski Company had the following statements prepared as of December 31, 2020: Michael Ski Company Comparative Balance Sheet As of December 31 2020 2019 Cash 2,500 4,000 Account receivable 103,000 97,000 Short-term investment (Available-for-sale) 96,000 121,000 Inventories 91,000 54,000 Prepaid insurance 4,000 6,000 Ski equipment 89,000 43,000 Accumulated depr.-equipment (23,500) (18,000) Trademarks 79,000 83,000 Total asets 441,000 390,000 Account payable 92,200 75,000 income taxes payable 21,800 15,700 Wages payable 4,000 9,000 Short-term loans payable to bank 23,500 0 Long-term loans payable 75,000 125,000 Common stock, $1 par 100,000 100,000 Additional paid-in capital 20,000 20,000 Retained earnings 104,500 45,300 Total…

Required:Prepare the statement of cash flows of Red, Inc., using the direct method to report operating activities. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

Answer 2

Question

Chapter 17, Problem 8E

a.

To determine

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.

To prepare: The statement of cash flows using the indirect method.

b.

To determine

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.

To calculate: The free cash flows.

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Answer 3

Question

Chapter 17, Problem 8E

a.

To determine

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.

To prepare: The statement of cash flows using the indirect method.

b.

To determine

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.

To calculate: The free cash flows.

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Answer 4

Question

Chapter 17, Problem 8E

a.

To determine

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.

To prepare: The statement of cash flows using the indirect method.

b.

To determine

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.

To calculate: The free cash flows.

Expert Solution & Answer

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Answer 5

Chapter 17, Problem 8E

a.

To determine

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.

To prepare: The statement of cash flows using the indirect method.

b.

To determine

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.

To calculate: The free cash flows.

Answer 6

Chapter 17, Problem 8E

a.

To determine

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.

To prepare: The statement of cash flows using the indirect method.

Answer 7

Chapter 17, Problem 8E

a.

To determine

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.

To prepare: The statement of cash flows using the indirect method.

Answer 8

b.

To determine

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.

To calculate: The free cash flows.

Answer 9

b.

To determine

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.

To calculate: The free cash flows.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 17 - Prob. 1Q Ch. 17 - Prob. 2Q Ch. 17 - Prob. 3Q Ch. 17 - Prob. 4Q Ch. 17 - Prob. 5Q Ch. 17 - Prob. 6Q Ch. 17 - 7. Why is it necessary to use comparative balance...Ch. 17 - 8. Contrast the advantages and disadvantages of...Ch. 17 - Prob. 9Q Ch. 17 - Prob. 10Q

Solution Summary: The author explains that the cash flow statement is prepared by the company to check the net decrease or increase in cash balance during the year.

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.

To calculate: The free cash flows.

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Chapter 17 Solutions

Solution Summary: The author explains that the cash flow statement is prepared by the company to check the net decrease or increase in cash balance during the year.

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year. To calculate: The free cash flows.

Want to see the full answer?

Chapter 17 Solutions

Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.

To calculate: The free cash flows.