ACC 205_week 5 discussion 1

Please help me with the question in the screenshot.

When using the Indirect Method of preparing the Statement of Cash Flows, in the operating section, some accounts are added and some costs are subtracted. If you had to explain to someone why an increase in accounts receivable is subtracted and the opposite as to why a decrease in accounts receivable is added, what information would you relay to them? (Include in your response the concept of accruals, FASB guidelines, sales and net income on the income statement, the balance sheet). Answer should be in a paragraph form.

For each of the following transactions, indicate whether operating (O), investing (I), or financingactivities (F) are affected and whether the effect is a cash inflow ( 1 ) or outflow ( 2 ), or (NE) if thetransaction has no effect on cash.TIP: Think about the journal entry recorded for the transaction. The transaction affects net cash flowsif and only if the account Cash is affected.1. Purchased new equipment with cash.2. Recorded and paid income taxes to the federal government.3. Issued shares of stock for cash.4. Prepaid rent for the following period.5. Paid cash to purchase new equipment.

Using the following information, complete an indirect method SCF in good form. The SCF should be presented in the worksheet labeled "Statement of Cash Flows". Record the journal entry for the sale of equipment to determine the cash effect of this transaction If ending cash on the SCF doesn't equal ending cash per the Balance Sheet, you've made a mistake somewhere. To find the error, recheck your work once, then redo the problem if you can't find your error. Use T accounts to analyze Investing Section (LT Assets) and Financing Section (LT Liabilities & Equity) for SCF ------------ Martinez Inc Balance Sheet and Income Statement Data   12/31/2025 12/31/2024 Current Assets:     Cash $ 5,900 $ 6,900 Accounts Receivable 61,400 51,200 Inventory 45,200 63,800 Total Current Assets 112,500 121,900 PPE 152,700 130,200 Accumulated Depreciation (35,400) (25,000) Land 80,400 67,900 Total Assets $ 310,200 $ 295,000       Current Liabilities:     Accounts Payable $…

I know in order to find the cash flow from operating activities using the indirect method you start with the net income then add your depreciation expense and your loss on disposal equipment. Then you subtract increases in account receivable and decrease in account receivable and that gives you your net income. However, when I compute this it says all my answers are incorrect. I thought I was doing this correctly but clearly I need assistance.

You can determine a company’s cash situation by analyzing the cash flow statement. The cash flow statement also helps determine whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets. Which of the following is true for the statement of cash flows? It reflects cash generated and used during the reporting period.   It reflects revenues when earned.     Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the following table, identify which type of activity is described by each statement.   Operating Activity Investing Activity Financing Activity A company reports a 10% increase in its accounts payable from the last month.         D and W Co. sells its last season’s inventory to a discount store.         Yum Brands distributes dividends to its…

Indicate how each event affects the elements of the financial statements. Use the letter "I" to indicate increase, the letter "D" to indicate decrease, and the letters "NA" to indicate no effect on net income. In the cash flow column, use the letter "I" to indicate cash inflow, the letter "D" to indicate cash outflow, and the letters "NA" to indicate no effect on cash flows (i) Howard Co. declared and paid a $1.50 per share cash dividend on the 20,000 shares of its common stock.

The statement of cash flows is useful to the analyst because__________. Select one: a. focusing on net income can be misleading if a company has a healthy profit, but cannot translate the profit into cash b. the statement of cash flows reveals why a company was able to generate a profit c. it is the only source in statement of comprehensive income for learning about cash generation d. focusing on net income is truthful if a company has a healthy profit and it can translate the profit into cash

Is it impossible for a company to report positive net income on the income statement but have negative cash flows from operating activities on the statement of cash flows? Yes or No? Thanks :)

You missed a section of the assignment.  Record the journal entry for the sale of equipment to determine the cash effect of this transaction If ending cash on the SCF doesn't equal ending cash per the Balance Sheet, you've made a mistake somewhere. To find the error, recheck your work once, then redo the problem if you can't find your error. Use T accounts to analyze Investing Section (LT Assets) and Financing Section (LT Liabilities & Equity) for SCF   Can you please provide the T accounts

b. Record each event in a statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.) REDD COMPANY Horizontal Statements Model - 2018 Balance Sheet Income Statement Statement of Cash Flows Event Assets = Liabilities + Stockholders' Equity Retained Revenue - Earnings Net Income Expenses Accounts Receivable Merchandise Accounts Common Stock Cash Inventory Payable Bal. 7,700 + 1,700 7,200 + 2,200 1a 5,200 = 5,200 + + 1b. (470) 470 OA + + 2. (400)=| + 3. (4,704) + (96) = 96 OA + + + 4а. 8,700 + 8,700 + 4b. (5,700) 5,700 = (5,700) 5а. (770) + (770) OA + 5b. 470 (470)|= 470 + + (570) + 570 = (570) OA (174) OA 6. + + = 7. 8,526 + (8,700) + + +…

b. Record each event in a statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.) Event Bal. 1a. 1b. 2. 3. 4a. 4b. 5a. 5b. 6. 7. 8. Bal. Cash Assets Accounts + Receivable 8,100+ + (510)+ + + + + (810) + + + + + $ 6,780 + + + + + + 9,100+ + + + + + Balance Sheet Merchandise Inventory = Liabilities + Stockholders' Equity Accounts Common Payable Stock Retained Earnings 2,600 = 2,100 = 5,600 = 510= 300 = 6,100 = = REDD COMPANY Horizontal Statements Model - Year 2 $ 9,100+ $ 14,610 = $ + + + + + + 0+ + 7,600 + + + + + + + + + $7,600 + Revenue $ 2,600 $ Income Statement Expenses = 0-$ = = 0= $ Net Income 0 $ Statement of Cash Flows 0

Use the following data to solve this problem.           Cash payments for interest $ (12 ) Retirement of common stock   (32 ) Cash payments to merchandise suppliers   (85 ) Purchase of land   (8 ) Sale of equipment   30   Payments of dividends   (37 ) Cash payment for salaries   (35 ) Cash collection from customers   260   Purchase of equipment   (40 )     a. Calculate net cash flows from operating activities? (Cash outflows should be indicated by a minus sign. Omit the "$" sign in your response.)   Cash flows from operating activities           $    b. Calculate net cash flows from investing activities? (Cash outflows should be indicated by a minus sign. Omit the "$" sign in your response.)   Cash flows from investing activities           $    c. Calculate net cash flows from financing activities? (Cash outflows should be indicated by a minus sign. Omit the "$" sign in your response.)   Cash flows from financing activities           $

Describe one of the three activities reported on the statement of cash flows. Help Lucy explain to Marion how a company can show a profit on their income statement yet show little to no positive cash flow on their statement of cash flows. A statement of cash flows might be used by a company to make short-term and long-term plans and decisions. Explain one type of plan or decision that could be made by evaluating a company’s statement of cash flows.

Cash flows are grouped in the statement of cash flows into the following major categories: Choose Cash receipts, cash disbursements, and noncash activities. ng each of the Operating activities, investing activities, and financing activities. Direct cash flows and indirect cash flows. Operating activities, investing activities, and collecting account for each supplier (creditor)

Is it possible to have “record net income” for a quarter and negative cash flows at the same time? Be specific in your response as to how you would, or would not, be able to see this in the financial statements.

Which of the following is not an example of a cash outflow?   Select one: a. Purchase of inventory on credit b. pay employee wages and salaries c. cash withdrawal by the owner d. payment of income tax e. payment of accounts payable

“Cash Is King” for all businesses You can determine a company’s cash situation by analyzing the cash flow statement. The cash flow statement also helps determine whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets. Which of the following is true for the statement of cash flows? It reflects revenues when earned.   It reflects cash generated and used during the reporting period.     A. Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the following table, identify which type of activity is described by each statement.   Operating Activity Investing Activity Financing Activity A company records a loss of $70,000 on the sale of its outdated inventory.         D and W Co. sells its last season’s inventory to a discount store.         Yum…

Cash flow statements help users decide whether a comnpany has enough cash to pay Its debts. True or False True False

“Cash Is King” for all businesses You can determine a company’s cash situation by analyzing the cash flow statement. The cash flow statement also helps determine whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets. Which of the following is true for the statement of cash flows? It reflects cash generated and used during the reporting period.   It reflects revenues when earned.     Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the following table, identify which type of activity is described by each statement.   Operating Activity Investing Activity Financing Activity Yum Co. uses cash to repurchase 10% of its common stock.         A pharmaceutical company buys marketing rights to sell a drug exclusively in East Asian markets.…

Do not copy from bartleby and chegg Cash-basis accounting produces a measure called net operating cash flow. Describe about the measure.

Please see the picture below. I need help with this please and thank you.

Required Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for in activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.)

The statement of cash flows is designed to assist users inassessing each of the following, except:a. The ability of a company to remain liquid.b. The major sources of cash receipts during the period.c. The company’s profitability. d. The reasons why net cash flows from operating activi-ties differ from net income.

Using the attached image. Prepare a complete statement of cash flows for December 2021 using the indirect method based on the information and guidance provided above.

State the section(s) of the statement of cash flows prepared by the indirect method (operating activities, investing activities, financing activities, or not reported) and the amount that would be reported for each of the following transactions: Note: Only consider the cash component of each transaction. Use the minus sign to indicate amounts that are cash out flows, cash payments, decreases in cash, or any negative adjustments. If your answer is not reported in an amount box does not require an entry, leave it blank or enter "0". a. Received $120,000 from the sale of land costing $70,000. Investing activities  $fill in the blank 2     Operating activities  $fill in the blank 4 b. Purchased investments for $75,000. Investing activities  $fill in the blank 6 c. Declared $35,000 cash dividends on stock. $5,000 dividends were payable at the beginning of the year, and $6,000 were payable at the end of the year. Financing activities  $fill in the blank 8 d. Acquired equipment for…

Help Lucy explain to Marion how a company can show a profit on their income statement yet show little to no positive cash flow on their statement of cash flow