Chapter 1, Problem 32E

The controller of Newstrom Software, Inc., provides the following information as the basis for a statement of cash flows: Cash collected from customers $785,400   Income taxes paid $58,300 Cash paid for interest 22,100   Payment of dividends 35,000 Cash paid to employees and other suppliers of goods and services 221,750   Principal payments on mortgage payable 60,000 Cash paid to suppliers of merchandise 395,540   Principal payments on long-term debt 22,000 Cash received from the issuance of long-term debt 40,000   Proceeds from the issuance of common stock 85,000 Cash received from disposal of equipment 42,500   Purchase of equipment 120,000 Cash received from sale of long-term investments 71,400   Purchase of long-term investments 75,800 I am having trouble classifying what goes into what category (Operating, Investing, or Financing) for the cash flows and so I wanted to ask about this question while I do it. Use a minus sign to indicate any cash outflows: 1.  Using…

The controller of Newstrom Software, Inc., provides the following information as the basis for a statement of cash flows: Cash collected from customers $785,400   Income taxes paid $58,300 Cash paid for interest 22,100   Payment of dividends 35,000 Cash paid to employees and other suppliers of goods and services 221,750   Principal payments on mortgage payable 60,000 Cash paid to suppliers of merchandise 395,540   Principal payments on long-term debt 22,000 Cash received from the issuance of long-term debt 40,000   Proceeds from the issuance of common stock 85,000 Cash received from disposal of equipment 42,500   Purchase of equipment 120,000 Cash received from sale of long-term investments 71,400   Purchase of long-term investments 75,800 Required: Use a minus sign to indicate any cash outflows: 1.  Using the information provided above, calculate the net cash provided (used) by operating activities. 2.  Using the information provided above, calculate the net cash…

The cash account balance of FDNACCT came from the following: From clients for service rendered, P361,000, From clients for services to be rendered, P23,000 From a bank loan, P102,000, and From additional investment of the owner, P174,000.    How much is the income of the business?

Suppose your company sells goods for $300, of which $200 is received in cash and $100 is onaccount. The goods cost your company $125 and were paid for in a previous period. Your companyalso recorded salaries and wages of $70, of which only $30 has been paid in cash.Required:1. Show the journal entries to record these transactions.2. Calculate the amount that should be reported as net cash flow from operating activities.3. Calculate the amount that should be reported as net income.4. Show how the indirect method would convert net income (requirement 3) to net cash flowfrom operating activities (requirement 2).5. What general rule about converting net income to operating cash flows is revealed by youranswer to requirement 4?

Analyze this transaction as an asset, liability, paid in capital or retained earnings(plus or a negative) collected $235,000 in cash from credit customers.

The Simplex Company reported cost of goods sold on its income statement of $10,000. The following account balances appeared on the company's comparative balance sheet for the same year: Data shows the ending and beginning balances of the accounts: Inventory $22,000 $20,000; Accounts Payable $14,000 $11,000 The company uses the indirect method to determine the net cash provided by operating activities. The cost of goods sold, adjusted to a cash basis, on the company's statement of cash flows for the year would be: a. $11,000 b. $10,000 c. $9,000 d. $5,000

Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATIONComparative Balance SheetsDecember 31 Current YearPrior YearAssets  Cash$ 180,000$ 124,600Accounts receivable107,00087,000Inventory625,000542,000Total current assets912,000753,600Equipment378,100315,000Accumulated depreciation—Equipment(166,000)(112,000)Total assets$ 1,124,100$ 956,600Liabilities and Equity  Accounts payable$ 119,000$ 87,000Income taxes payable44,00033,100Total current liabilities163,000120,100Equity  Common stock, $2 par value611,200584,000Paid-in capital in excess of par value, common…

Can you explain how you got the figure for purchase of equipment (215,000) and also please answer the below multiple choice:   The term cash as used on the statement of cash flows includes all the following EXCEPT: A) cash due from customers within 30 days. B) cash on hand. C) cash equivalents. D) cash in bank   Which of the following statements accurately describes the statement of cash flows? A) It shows the relative proportion of debt and assets. B) It shows the link between accrual-based income and the cash reported on the balance sheet. C) It indicates when long-term debt will mature. D) It shows the link between book income and earnings per share.   Which of the following is NOT a true statement about the statement of cash flows? A) It shows where cash came from and how it was spent. B) It reports why cash increased or decreased. C) It covers a specific span of time the same as the income statement. D) It shows how the profits or losses of the company were generated.…

The accounting records of Hampton Company provided the data below ($ in thousands).Net income $17,300Depreciation expense 7,800Increase in accounts receivable 4,000Decrease in inventory 5,500Decrease in prepaid insurance 1,200Decrease in salaries payable 2,700Increase in interest payable 800Required:Prepare a reconciliation of net income to net cash flows from operating activities.