Statement of cash flows : It represents net cash flow available after taking into consideration operating, financing, and investing expenses for a given financial year. Direct method: It reports cash receipts and disbursements arising out of operating activities. Difference between these amounts helps us arrive at the net cash flows from operating activities. To determine statement of cash flows using Direct method. Given Information: Comparative Balance sheet as on December 31 2017 ($) 2016 ($) Cash 6,000 7,000 Receivables 62,000 51,000 Short-term investments (available-for-sale) 35,000 18,000 Inventory 40,000 60,000 Prepaid rent 5,000 4,000 Equipment 154,000 130,000 Accumulated depreciation (35,000) (25,000) Copy Rights 46,000 50,000 Total Assets 313,000 295,000 Accounts payable 46,000 40,000 Income Tax payable 4,000 6,000 Salaries and wages payable 8,000 4,000 Short-term loans payable 8,000 10,000 Long-term loans payable 60,000 69,000 Common stock $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 57,000 36,000 Total Liabilities and Stockholders’ Equity 313,000 295,000

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 23, Problem 13E

To determine

Statement of cash flows: It represents net cash flow available after taking into consideration operating, financing, and investing expenses for a given financial year.

Direct method: It reports cash receipts and disbursements arising out of operating activities. Difference between these amounts helps us arrive at the net cash flows from operating activities.

To determine statement of cash flows using Direct method.

Given Information:

Comparative Balance sheet as on December 31

2017 ($)

2016 ($)

Cash

6,000

7,000

Receivables

62,000

51,000

Short-term investments (available-for-sale)

35,000

18,000

Inventory

40,000

60,000

Prepaid rent

5,000

4,000

Equipment

154,000

130,000

Accumulated depreciation

(35,000)

(25,000)

Copy Rights

46,000

50,000

Total Assets

313,000

295,000

Accounts payable

46,000

40,000

Income Tax payable

4,000

6,000

Salaries and wages payable

8,000

4,000

Short-term loans payable

8,000

10,000

Long-term loans payable

60,000

69,000

Common stock $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

57,000

36,000

Total Liabilities and Stockholders’ Equity

313,000

295,000

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Answer 2

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 23, Problem 13E

To determine

Statement of cash flows: It represents net cash flow available after taking into consideration operating, financing, and investing expenses for a given financial year.

Direct method: It reports cash receipts and disbursements arising out of operating activities. Difference between these amounts helps us arrive at the net cash flows from operating activities.

To determine statement of cash flows using Direct method.

Given Information:

Comparative Balance sheet as on December 31

2017 ($)

2016 ($)

Cash

6,000

7,000

Receivables

62,000

51,000

Short-term investments (available-for-sale)

35,000

18,000

Inventory

40,000

60,000

Prepaid rent

5,000

4,000

Equipment

154,000

130,000

Accumulated depreciation

(35,000)

(25,000)

Copy Rights

46,000

50,000

Total Assets

313,000

295,000

Accounts payable

46,000

40,000

Income Tax payable

4,000

6,000

Salaries and wages payable

8,000

4,000

Short-term loans payable

8,000

10,000

Long-term loans payable

60,000

69,000

Common stock $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

57,000

36,000

Total Liabilities and Stockholders’ Equity

313,000

295,000

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 23, Problem 13E

To determine

Statement of cash flows: It represents net cash flow available after taking into consideration operating, financing, and investing expenses for a given financial year.

Direct method: It reports cash receipts and disbursements arising out of operating activities. Difference between these amounts helps us arrive at the net cash flows from operating activities.

To determine statement of cash flows using Direct method.

Given Information:

Comparative Balance sheet as on December 31

2017 ($)

2016 ($)

Cash

6,000

7,000

Receivables

62,000

51,000

Short-term investments (available-for-sale)

35,000

18,000

Inventory

40,000

60,000

Prepaid rent

5,000

4,000

Equipment

154,000

130,000

Accumulated depreciation

(35,000)

(25,000)

Copy Rights

46,000

50,000

Total Assets

313,000

295,000

Accounts payable

46,000

40,000

Income Tax payable

4,000

6,000

Salaries and wages payable

8,000

4,000

Short-term loans payable

8,000

10,000

Long-term loans payable

60,000

69,000

Common stock $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

57,000

36,000

Total Liabilities and Stockholders’ Equity

313,000

295,000

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 23, Problem 13E

To determine

Statement of cash flows: It represents net cash flow available after taking into consideration operating, financing, and investing expenses for a given financial year.

Direct method: It reports cash receipts and disbursements arising out of operating activities. Difference between these amounts helps us arrive at the net cash flows from operating activities.

To determine statement of cash flows using Direct method.

Given Information:

Comparative Balance sheet as on December 31

2017 ($)

2016 ($)

Cash

6,000

7,000

Receivables

62,000

51,000

Short-term investments (available-for-sale)

35,000

18,000

Inventory

40,000

60,000

Prepaid rent

5,000

4,000

Equipment

154,000

130,000

Accumulated depreciation

(35,000)

(25,000)

Copy Rights

46,000

50,000

Total Assets

313,000

295,000

Accounts payable

46,000

40,000

Income Tax payable

4,000

6,000

Salaries and wages payable

8,000

4,000

Short-term loans payable

8,000

10,000

Long-term loans payable

60,000

69,000

Common stock $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

57,000

36,000

Total Liabilities and Stockholders’ Equity

313,000

295,000

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Answer 5

Chapter 23, Problem 13E

To determine

Statement of cash flows: It represents net cash flow available after taking into consideration operating, financing, and investing expenses for a given financial year.

Direct method: It reports cash receipts and disbursements arising out of operating activities. Difference between these amounts helps us arrive at the net cash flows from operating activities.

To determine statement of cash flows using Direct method.

Given Information:

Comparative Balance sheet as on December 31

2017 ($)

2016 ($)

Cash

6,000

7,000

Receivables

62,000

51,000

Short-term investments (available-for-sale)

35,000

18,000

Inventory

40,000

60,000

Prepaid rent

5,000

4,000

Equipment

154,000

130,000

Accumulated depreciation

(35,000)

(25,000)

Copy Rights

46,000

50,000

Total Assets

313,000

295,000

Accounts payable

46,000

40,000

Income Tax payable

4,000

6,000

Salaries and wages payable

8,000

4,000

Short-term loans payable

8,000

10,000

Long-term loans payable

60,000

69,000

Common stock $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

57,000

36,000

Total Liabilities and Stockholders’ Equity

313,000

295,000

Answer 6

Chapter 23, Problem 13E

To determine

Statement of cash flows: It represents net cash flow available after taking into consideration operating, financing, and investing expenses for a given financial year.

Direct method: It reports cash receipts and disbursements arising out of operating activities. Difference between these amounts helps us arrive at the net cash flows from operating activities.

To determine statement of cash flows using Direct method.

Given Information:

Comparative Balance sheet as on December 31

2017 ($)

2016 ($)

Cash

6,000

7,000

Receivables

62,000

51,000

Short-term investments (available-for-sale)

35,000

18,000

Inventory

40,000

60,000

Prepaid rent

5,000

4,000

Equipment

154,000

130,000

Accumulated depreciation

(35,000)

(25,000)

Copy Rights

46,000

50,000

Total Assets

313,000

295,000

Accounts payable

46,000

40,000

Income Tax payable

4,000

6,000

Salaries and wages payable

8,000

4,000

Short-term loans payable

8,000

10,000

Long-term loans payable

60,000

69,000

Common stock $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

57,000

36,000

Total Liabilities and Stockholders’ Equity

313,000

295,000

Answer 7

Chapter 23, Problem 13E

To determine

Statement of cash flows: It represents net cash flow available after taking into consideration operating, financing, and investing expenses for a given financial year.

Direct method: It reports cash receipts and disbursements arising out of operating activities. Difference between these amounts helps us arrive at the net cash flows from operating activities.

To determine statement of cash flows using Direct method.

Given Information:

Comparative Balance sheet as on December 31

2017 ($)

2016 ($)

Cash

6,000

7,000

Receivables

62,000

51,000

Short-term investments (available-for-sale)

35,000

18,000

Inventory

40,000

60,000

Prepaid rent

5,000

4,000

Equipment

154,000

130,000

Accumulated depreciation

(35,000)

(25,000)

Copy Rights

46,000

50,000

Total Assets

313,000

295,000

Accounts payable

46,000

40,000

Income Tax payable

4,000

6,000

Salaries and wages payable

8,000

4,000

Short-term loans payable

8,000

10,000

Long-term loans payable

60,000

69,000

Common stock $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

57,000

36,000

Total Liabilities and Stockholders’ Equity

313,000

295,000

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 23 - Prob. 1Q Ch. 23 - Prob. 2Q Ch. 23 - Prob. 3Q Ch. 23 - Prob. 4Q Ch. 23 - Prob. 5Q Ch. 23 - Prob. 6Q Ch. 23 - Prob. 7Q Ch. 23 - Prob. 8Q Ch. 23 - Prob. 9Q Ch. 23 - Prob. 10Q

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Chapter 23 Solutions

Comparative Balance sheet as on December 31	2017 ($)	2016 ($)
Cash	6,000	7,000
Receivables	62,000	51,000
Short-term investments (available-for-sale)	35,000	18,000
Inventory	40,000	60,000
Prepaid rent	5,000	4,000
Equipment	154,000	130,000
Accumulated depreciation	(35,000)	(25,000)
Copy Rights	46,000	50,000
Total Assets	313,000	295,000

Accounts payable	46,000	40,000
Income Tax payable	4,000	6,000
Salaries and wages payable	8,000	4,000
Short-term loans payable	8,000	10,000
Long-term loans payable	60,000	69,000
Common stock $10 par	100,000	100,000
Contributed capital, common stock	30,000	30,000
Retained earnings	57,000	36,000
Total Liabilities and Stockholders’ Equity	313,000	295,000