Bundle: Financial Accounting: Tools for Business Decision Making 8e Binder Ready Version + WileyPLUS Registration Code
8th Edition
ISBN: 9781119221647
Author: Paul D. Kimmel
Publisher: Wiley (WileyPLUS Products)
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Chapter 1, Problem 1.13E
a.
To determine
Introduction:
Financial statements are a complete record of the financial transactions that takes place in a company at a particular point of time. It provides important financial information like assets, liabilities, revenues and expenses of the company to its internal and external users. It helps them to know the exact financial position of the company. There are four basic financial statements as shown in the figure below:
Basic Financial Statements
Figure (1)
To Prepare: Statement of cash flows for the year ended 31 December, 2017.
b.
To determine
Whether net cash provided by the operating activities was sufficient to finance the company’s investing activities.
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Suppose the following data are derived from the 2022 financial statements of Southwest Airlines. (All dollars are in millions.) Southwest has a December 31 year-end.
Cash balance, January 1, 2022
$1,370
Cash paid for repayment of debt
123
Cash received from issuance of common stock
130
Cash received from issuance of long-term debt
490
Cash received from customers
9,860
Cash paid for property and equipment
1,540
Cash paid for dividends
15
Cash paid for repurchase of common stock
1,050
Cash paid for goods and services
6,920
(a)After analyzing the data, prepare a statement of cash flows for Southwest Airlines for the year ended December 31, 2022. (Show amounts that decrease cash flow either with a negative sign preceding the number e.g. -15,000 or in parentheses e.g. (15,000). Enter amounts in millions, e.g. 45,000,000 would be entered as 45.)
Suppose the following data are derived from the 2022 financial statements of Southwest Airlines. (All dollars are in millions.) Southwest has a December 31 year-end.
Cash balance, January 1, 2022
$1,310
Cash paid for repayment of debt
129
Cash received from issuance of common stock
140
Cash received from issuance of long-term debt
480
Cash received from customers
9,630
Cash paid for property and equipment
1,450
Cash paid for dividends
15
Cash paid for repurchase of common stock
1,040
Cash paid for goods and services
6,570
After analyzing the data, prepare a statement of cash flows for Southwest Airlines for the year ended December 31, 2022. (Show amounts that decrease cash flow either with a negative sign preceding the number e.g. -15,000 or in parentheses e.g. (15,000). Enter amounts in millions, e.g. 45,000,000 would be entered as 45.)
Accountants for Johnson, Inc. have assembled the following data for the year ended December 31, 2018:
2018 2017
Current Assets
Cash $124,700 $26,000
Accounts Receivable 64,500 69,400
Merchandise Inventory 82,000 79,000
Current Liabilities
Accounts Payable 57,700 55,500
Income Tax Payable 14,300 17,100
Transaction Data for 2018:
Issuance of common stock for cash $43,000 Payment of notes payable $44,100
Depreciation expense 26,000 Payment of cash dividends 51,000
Purchase of equipment with cash 69,000 Issuance of notes payable to borrow cash 66,000
Acquisition of land by issuing long-term notes payable 115,000 Gain on sale of building 6,500
Book value of building sold 56,000 Net income 70,500
Prepare Johnson's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities.
Chapter 1 Solutions
Bundle: Financial Accounting: Tools for Business Decision Making 8e Binder Ready Version + WileyPLUS Registration Code
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Accounting is ingrained in our society and is...Ch. 1 - Prob. 5QCh. 1 - Prob. 6QCh. 1 - What are the three main types of business...Ch. 1 - Prob. 8QCh. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - What are the three main categories of the...Ch. 1 - Prob. 13QCh. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Which of these items are liabilities of White...Ch. 1 - How are each of the following financial statements...Ch. 1 - What is the purpose of the management discussion...Ch. 1 - Prob. 19QCh. 1 - Prob. 20QCh. 1 - Prob. 21QCh. 1 - Prob. 1.1BECh. 1 - Match each of the following types of evaluation...Ch. 1 - Indicate in which part of the statement of cash...Ch. 1 - Prob. 1.4BECh. 1 - Prob. 1.5BECh. 1 - Prob. 1.6BECh. 1 - Indicate which statement you would examine to find...Ch. 1 - Prob. 1.8BECh. 1 - Prob. 1.9BECh. 1 - Prob. 1.10BECh. 1 - Prob. 1.11BECh. 1 - Prob. 1.1DIECh. 1 - Prob. 1.2DIECh. 1 - Prob. 1.3ADIECh. 1 - Prob. 1.3BDIECh. 1 - Here is a list of words or phi uses discussed in...Ch. 1 - Prob. 1.3ECh. 1 - Prob. 1.4ECh. 1 - Prob. 1.5ECh. 1 - Prob. 1.6ECh. 1 - Prob. 1.7ECh. 1 - Prob. 1.8ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.10ECh. 1 - Prob. 1.11ECh. 1 - Prob. 1.12ECh. 1 - Prob. 1.13ECh. 1 - Prob. 1.14ECh. 1 - Prob. 1.15ECh. 1 - Prob. 1.16ECh. 1 - Prob. 1.17ECh. 1 - Prob. 1.1APCh. 1 - Financial decisions often place heavier emphasis...Ch. 1 - Prob. 1.3APCh. 1 - Prob. 1.4APCh. 1 - Prob. 1.5APCh. 1 - Prob. 1.1EYCTCh. 1 - Prob. 1.2EYCTCh. 1 - Prob. 1.3EYCTCh. 1 - INTERPRETING FINANCIAL STATEMENTS Xerox was not...Ch. 1 - Prob. 1.5EYCTCh. 1 - Prob. 1.6EYCTCh. 1 - Prob. 1.7EYCTCh. 1 - Prob. 1.8EYCTCh. 1 - Prob. 1.9EYCTCh. 1 - Prob. 1.10EYCTCh. 1 - Prob. 1.1IFRSCh. 1 - Prob. 1.2IFRSCh. 1 - Prob. 1.3IFRS
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