3-10. (Analyzing a statement of cash flous) Interpret the following information regard-ing Westlake Corporation's cash flows.Net income$680Depreciation expense125805Profits before depreciationIncrease in accounts receivables(200)(240)120Increase in inventoniesIncrease in accounts payablesIncrease in accrued expenses81$566Cash flow from operationsInvestment activity(1,064)Change in fixed assetsFinancing activity$640Increase in long-term debt(120)Common stock dividends$520Total financing activitiesChange in cashBeginning cash$22500$522Endine cash

Cashflow: It is a statement showing the flow of cash in different operations. Analysis of the…

3-10. (Analyzing a statement of cash flows) Interpret the following information rega ing Westlake Corporation's cash flows. Net income $680 Depreciation expense 125 Profits before depreciation 805 Increase in accounts receivables (200) Increase in inventonies (240) 120 Increase in accounts payables Increase in accrued expenses 81 Cash flow from operations $566 Investment activity (1,064) Change in fixed assets Financing activity $640 Increase in long-term debt (120) $520 Common stock dividends Total financing activities $22

3-10. (Analyzing a statement of cash flows) Interpret the following information rega ing Westlake Corporation's cash flows. Net income $680 Depreciation expense 125 Profits before depreciation 805 Increase in accounts receivables (200) Increase in inventonies (240) 120 Increase in accounts payables Increase in accrued expenses 81 Cash flow from operations $566 Investment activity (1,064) Change in fixed assets Financing activity $640 Increase in long-term debt (120) $520 Common stock dividends Total financing activities $22

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

See similar textbooks

Similar questions

Refer to the information for Cornett Company above. What amount should Cornett report on its statement of cash flows as net cash flows provided by investing activities? a. $(5,200) b. $55,200 c. $144,800 d. None of these
Preparing a Statement of Cash Flows Monon Cable Television Company reported the following financial statements for 20l9: Required: 1. Prepare a statement of cash flows using the indirect method to compute net cash flow from operating activities. 2. CONCEPTUAL CONNECTION Explain what has been responsible for the decrease in cash.
Classification of Cash Flows Patel Company reported the following items in its statement of cash flows presented using the indirect method. a. Issuance of common stock b. Cash paid for interest c. Sold equipment for cash d. Receipt of cash dividend on investment e. Repayment of principal on long-term debt f. Loss on disposal of equipment. Required: Indicate whether each item should be classified as a cash flow from operating activities, a cash flow from investing activities, a cash flow from financing activities. Use the following information for Cornerstone Exercises 11-16 and 11-17: A review of the balance sheet of Peterson Inc. revealed the following changes in the account balances: a. Increase in long-term investment b Increase in accounts receivable c. Increase in common stock d. Increase in long-term debt e. Decrease in accounts payable f. Decrease in supplies inventory g. Increase in prepaid insurance h. Decrease in retained earnings
Tifton Co. had the following cash transactions during the current year: Refer to the information in RE21-6. Prepare the financing activities section of Tifton Co.s statement of cash flows.
Which item is added to net income when computing cash flows from operating activities? a. Gain on the disposal of property, plant, and equipment b. Increase in wages payable c. Increase in inventory d. Increase in prepaid rent Use the following information for Multiple-Choice Questions 11-9 and 11-10: Cornett Company reported the following information: cash received from the issuance of common stock, $150,000; cash received from the sale of equipment, $14,800; cash paid to purchase an investment, $20,000; cash paid to retire a note payable, $50,000; and cash collected from sales to customers, $225,000.
Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400
List the three operating cash inflows that a company reports under the direct method.
Statement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income, 68,000 b. Increase in accounts receivable, 4,400 c. Receipt from sale of common stock, 12,300 d. Depreciation expense, 11,300 e. Dividends paid, 24,500 f. Payment for purchase of building, 65,000 g. Bond discount amortization, 2,700 h. Receipt from sale of long-term investments at cost, 10,600 i. Payment for purchase of equipment, 8,000 j. Receipt from sale of preferred stock, 20,000 k. Increase in income taxes payable, 3,500 l. Payment for purchase of land, 9,700 m. Decrease in accounts payable, 2,900 n. Increase in inventories, 10,300 o. Beginning cash balance, 18,000 Required: Prepare Mueller Company's statement of cash flows.
Roberts Company provided the following partial comparative balance sheets and the income statement for 20X2. Required: Compute operating cash flows using the indirect method.