Concept explainers
Consolidated statement of cash flow:consolidated entities, as with individual companies, must present a statement of cash flow when they issue a complete set of financial statements. A consolidated statement of
consolidated cash balance for January 1, 20X2.
b.
Consolidated statement of cash flow: consolidated entities, as with individual companies, must present a statement of cash flow when they issue a complete set of financial statements. A consolidated statement of cash flows is similar to a statement of cash flows prepared for an individual corporate entity and is prepared in same manner. Consolidated statement of cash flow is prepared after consolidated financial statement. Consolidated cash flow statement is prepared from the information in the three consolidated statements. When an indirect approach is used, consolidated net income must be adjusted for all items that affect consolidated net income and the cash of consolidated entity effectively.
The amount of reported dividends paid in cash flow from financing activity.
c.
Consolidated statement of cash flow: consolidated entities, as with individual companies, must present a statement of cash flow when they issue a complete set of financial statements. A consolidated statement of cash flows is similar to a statement of cash flows prepared for an individual corporate entity and is prepared in same manner. Consolidated statement of cash flow is prepared after consolidated financial statement. Consolidated cash flow statement is prepared from the information in the three consolidated statements. When an indirect approach is used, consolidated net income must be adjusted for all items that affect consolidated net income and the cash of consolidated entity effectively.
The amount of net income reported if other adjustments to reconcile consolidated net income and cash provided by operations increases over net income.
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ADVANCED FINANCIAL ACCOUNTING IA
- Statement of Cash Flows A list of Fischer Companys cash flow activities is presented here: a. Patent amortization expense, 3,500 b. Machinery was purchased for 39,500 c. At year-end, bonds payable with a face value of 20,000 were issued for 17,000 d. Net income, 47,200 k. Inventories increased by 15,400 e. Dividends paid, 16,000 f. Depreciation expense, 12,900 g. Preferred stock was issued for 13,600 h. Investments were acquired for 21,000 i. Accounts receivable increased by 4,300 j. Land was sold at cost, 11,000 k. Inventories increased by 15,400 l. Accounts payable increased by 2,700 m. Beginning cash balance, 19,400 Required: Prepare Fischers statement of cash flows.arrow_forwardChasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectivelyarrow_forwardCommon stock transactions on the statement of cash flows Jones Industries received 600,000 from issuing shares of its common stock and 400,000 from issuing bonds. During the year, Jones Industries also paid dividends of 60,000. How are the effects of these transactions reported on the statement of cash flows?arrow_forward
- Tidwell Company experienced the following during 20X1: a. Sold preferred stock for 480,000. b. Declared dividends of 150,000 payable on March 1, 20X2. c. Borrowed 575,000 from a bank on a 2-year note. d. Purchased 80,000 of its own common stock to hold as treasury stock. e. Repaid 5-year bonds issued for 400,000 that mature and are due in December. Required: Prepare the net cash from financing activities section of the statement of cash flows.arrow_forwardIn preparing its cash flow statement for the year ended December 31, 2021, Green Co. gathered the following data: Gain on sale of land $ 12,200 21,300 Proceeds from sale of land Purchase of Black, Inc., bonds (face value $235,000) Amortization of bond discount 365,000 4,500 93,000 78,000 Cash dividends declared Cash dividends paid Proceeds from sales of Green Co. common stock 155,000 In its December 31, 2021, statement of cash flows, what amount should Green report as net cash from financing activities? Multiple Choice $15,000. $77,000. $62,000. $130,000.arrow_forwardSedona Corporation declared and paid a cash dividend of $6,800 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Year Previous Year Income Statement $ 120,000 56,000 64,000 38,000 4,200 21,800 6,540 $ 15,260 $ 107,000 52,000 55,000 34,600 4,200 16,200 4,860 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income $ 11,340 Balance Sheet Cash $ 72,110 19,000 27,000 97,000 $ 215,110 $ 44,000 1,050 42,000 87,050 91,200 36,860 Accounts Receivable, Net Inventory Property and Equipment, Net $ 36,000 14,000 40,000 107,000 $ 197,000 $ 34,800 600 42,000 77,400 91,200 28,400 Total Assets Accounts Payable Income Tax Payable Notes Payable (long-term) Total Liabilities Common Stock (par $10) Retained Earnings Total Liabilities and Stockholders' Equity $ 215,110 $ 197,000arrow_forward
- STATEMENT OF CASH FLOWS An entity provided the following increases (decreases) in the statement of financial position accounts. Cash and cash equivalents 120,000 Available for sale securities 300,000 Accounts receivable, net - Inventory 80,000 Long-term investments (100,000) Plant assets 700,000 Accumulated depreciation - Accounts payable ( 5,000) Dividend payable 160,000 Short-term bank debt 325,000 Long-term debt 110,000 Share capital, P10 par 100,000 Share premium 120,000 Retained earnings 290,000 Net income for the current year was P790,000. Cash dividend of P500,000 was declared. Building costing P600,000 and with carrying amount of P350,000 was sold for P350,000. Equipment costing P110,000 was acquired through issuance of long-term debt. A long-term investment was sold for P135,000. There were no…arrow_forwardDenna Company’s working capital accounts at the beginning of the year follow: Cash $ 69,000 Marketable securities $ 25,900 Accounts receivable, net $ 347,600 Inventory $ 457,400 Prepaid expenses $ 7,800 Accounts payable $ 198,200 Notes due within one year $ 98,000 Accrued liabilities $ 59,100 During the year, Denna Company completed the following transactions: Paid a cash dividend previously declared, $29,000. Issued additional shares of common stock for cash, $198,000. Sold inventory costing $69,200 for $99,000, on account. Wrote off uncollectible accounts in the amount of $9,600, reducing the accounts receivable balance accordingly. Declared a cash dividend, $29,000. Paid accounts payable, $98,400. Borrowed cash on a short-term note with the bank, $58,500. Sold inventory costing $19,800 for $13,200 cash. Purchased inventory on account, $49,250. Paid off all short-term notes due, $156,500. Purchased equipment for cash, $74,200. Sold marketable securities…arrow_forwardDenna Company’s working capital accounts at the beginning of the year follow: Cash $ 69,000 Marketable securities $ 25,900 Accounts receivable, net $ 347,600 Inventory $ 457,400 Prepaid expenses $ 7,800 Accounts payable $ 198,200 Notes due within one year $ 98,000 Accrued liabilities $ 59,100 During the year, Denna Company completed the following transactions: Paid a cash dividend previously declared, $29,000. Issued additional shares of common stock for cash, $198,000. Sold inventory costing $69,200 for $99,000, on account. Wrote off uncollectible accounts in the amount of $9,600, reducing the accounts receivable balance accordingly. Declared a cash dividend, $29,000. Paid accounts payable, $98,400. Borrowed cash on a short-term note with the bank, $58,500. Sold inventory costing $19,800 for $13,200 cash. Purchased inventory on account, $49,250. Paid off all short-term notes due, $156,500. Purchased equipment for cash, $74,200. Sold marketable securities…arrow_forward
- Columbia Associates declared and paid a cash dividend of $7,500 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30 %) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Paya Notes Payable (long-term) Total Liabilities Common Stock (par $10) Retained Earnings Total Liabilities and Stockholders' Equity Current Year Previous Year $ 155,000 70,000 85,000 45,000 4,900 35,100 10,530 $ 24,570 $ 81,245 26,000 34,000 104,000 $ 245,245 $ 51,000 1,225 49,000 101,225 95,400 48,620 $ 245,245 $ 135,000 66,000 69,000 40,200 4,900 23,900 7,170 $ 16,730 $ 29,000 21,000 47,000 114,000 $ 211,000 $ 34,100 950 49,000 84,050 95,400 31,550 $ 211,000 Required: 1. Compute the gross profit…arrow_forwardThe Financing Activities section of a recent statement of cash flows for Bay Area Corporation reported a $75,000 payment of shareholder dividends and an issuance of common stock at par for $533,000, resulting in net cash flows of a.$458,000. b.$533,000. c.$(75,000). d.$608,000.arrow_forwardDawson Corp. reports the following information: Net cash provided by operating activities: $285,000 Average current liabilities: $150,000 Average non-current liabilities: $100,000 Dividends declared: $60,000 Capital expenditures: $110,000 Payment of long-term debt: $35,000 What is Dawson's cash debt coverage ratio? Question 11 options: 1.14 1.90 2.28 2.85arrow_forward
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