Explanation Cash Flow Statement: Cash flow statement refers to the financial statement that shows the summary of increase or decrease in cash in a company for a particular period of time. Cash can be increased or decreased through three activities that are operating, investing and financing activities. Calculation of net cash flow is: E Incorporated Partial statement of cash flows For the year ended December 31 Operating Activities: Amount ($) Net income 7,600 Add: Depreciation 2,400 Less: Increase in accounts receivable (500) Add: Decrease in inventory 1,700 Add: Decrease in prepaid expenses 500 Add: Increase in accounts payable 3,500 Add: I...

Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition

1st Edition

ISBN: 9780134047430

Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

Publisher: PEARSON

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Chapter 6, Problem 6.16P

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To prepare: The cash flow statement under the indirect reporting format.

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Chapter 6, Problem 6.15P

Chapter 6, Problem 1JC

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Financial data for Hunger Games Company for last year appear below: Hunger Games Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $120,700 $220,000 Accounts receivable 225,000 475,000 Inventory 317,000 390,000 Plant and equipment (net) 940,000 860,000 Investment in Katniss Company 100,000 98,000 Land (undeveloped) 198,000 65,000 Total assets $1,900,700 $2,108,000 Liabilities and owners' equity: Accounts payable $178,700 $8,000 Long-term debt 512,000 600,000 Owners' equity 1,210,000 1,500,000 Total liabilities and owners' $1,900,700 $2,108,000 equity

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Chapter 6 Solutions

Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition

Ch. 6 - What are the limitations of the balance sheet?Ch. 6 - What does a firms liquidity measure?Ch. 6 - Prob. 6.3Q Ch. 6 - What are the four major components of stockholders...Ch. 6 - Prob. 6.5Q Ch. 6 - Prob. 6.6Q Ch. 6 - Where is accumulated other comprehensive income...Ch. 6 - Prob. 6.8Q Ch. 6 - Prob. 6.9Q Ch. 6 - What are the two main balance sheet formats?...

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The cash flow statement under the indirect reporting format.

Solution Summary: The author explains that the ending balance of cash flow under the indirect reporting format is 7,000. Cash can be increased or decreased through operating, investing, and financing activities.

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To prepare: The cash flow statement under the indirect reporting format.

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Chapter 6 Solutions