Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Chapter 11, Problem 60.1C
To determine
Concept introduction:
Cash flow statement is also known as statement of cash flows. It shows inflow and outflow of cash and it is divided into three categories, i.e., operating, investing and financing activities. The investing cash flow shows the expansion of company in terms of assets, i.e., sale and purchase of those assets which are not intended to be sold in near future.
Whether camera Shop had grown in terms of assets in past two years.
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Create a statement of cash flow from the following transactions from the books of Arts and Styles. The owner wants to see the result of its operation after a month of existence December, 2020.
December 1 Chon Loo invested 1,500,000 and equipment worth 500,000.
3 Paid Permits and licenses to operate 12,000.
5 Bought tables, chairs, on account from SM Malls, 250,000.
8 Rendered services for cash worth 50,000.
9 Rendered services on account with a promissory note from Aces worth 30,000.
10 Bought canvas and paints worth 20,000.
15 Paid salaries of artist for 6 months, worth 300,000.
20 The owner withdraw 10,000 for personal use.
25 Borrowed money from Metro Bank 1,000,000 giving a promissory payable in a year with
Interest of 8% per annum.
27 Collected from Aces…
Create a statement of cash flow from the following transactions from the books of Arts and Styles. The owner wants to see the result of its operation after a month of existence December, 2020.
December 1 Chon Loo invested 1,500,000 and equipment worth 500,000.
3 Paid Permits and licenses to operate 12,000.
5 Bought tables, chairs, on account from SM Malls, 250,000.
8 Rendered services for cash worth 50,000.
9 Rendered services on account with a promissory note from Aces worth 30,000.
10 Bought canvas and paints worth 20,000.
15 Paid salaries of artist for 6 months, worth 300,000.
20 The owner withdraw 10,000 for personal use.
25 Borrowed money from Metro Bank 1,000,000 giving a promissory payable in a year with
Interest of 8% per annum.
27 Collected from Aces…
Construct the statement of cash flow:
Hyrule Motors, a motorcycle repairs and maintenance services provider, had the following transaction during 2020, its first month of operations:
January 1. The owner, Link, invested P1,000,000 cash to start the business.
January 1. Hyrule Motors bought computer equipment totaling P240,000 using cash.
January 1. Bought furniture and fixtures using cash, P400,000.
January 1. Bought machineries totaling P500,000 on account.
January 3. Bought office supplies amounting 50,000 cash.
January 7. Rendered services amounting to P800,000, on account.
January 8. Rendered services amounting to P200,000 cash.
January 13. Paid 300,000 for the machineries bought on January 1.
January 27. Received P400,000 cash as payment for the services rendered on January 31.
January 31. Paid P100,000 for the month’s utilities.
Chapter 11 Solutions
Cornerstones of Financial Accounting
Ch. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - How is a statement of cash flows different from an...Ch. 11 - Prob. 4DQCh. 11 - What are the three categories into which inflows...Ch. 11 - Prob. 6DQCh. 11 - Why are direct exchanges of long-term debt for...Ch. 11 - Describe the relationship between changes in cash...Ch. 11 - What are two ways to report a companys net cash...Ch. 11 - Why are depreciation, depletion, and amortization...
Ch. 11 - Prob. 11DQCh. 11 - Prob. 12DQCh. 11 - What does an increase in inventory imply? How...Ch. 11 - Prob. 14DQCh. 11 - Prob. 15DQCh. 11 - Prob. 16DQCh. 11 - Prob. 17DQCh. 11 - What balance sheet account changes might you...Ch. 11 - Prob. 19DQCh. 11 - Prob. 20DQCh. 11 - Prob. 21DQCh. 11 - Prob. 22DQCh. 11 - Prob. 23DQCh. 11 - Prob. 24DQCh. 11 - Which of the following is not a use of the...Ch. 11 - Which of the following would be classified as a...Ch. 11 - Prob. 3MCQCh. 11 - Which of the following is an example of a cash...Ch. 11 - Prob. 5MCQCh. 11 - Which of the following statements is true? a. Net...Ch. 11 - Mullinix Inc. reported the following information:...Ch. 11 - Which item is added to net income when computing...Ch. 11 - Refer to the information for Cornett Company...Ch. 11 - Prob. 10MCQCh. 11 - Chasse Building Supply Inc. reported net cash...Ch. 11 - Smoltz Company reported the following information...Ch. 11 - Prob. 13MCQCh. 11 - Classification of Cash Flows Stanfield Inc....Ch. 11 - Classification of Cash Flows Patel Company...Ch. 11 - Prob. 16CECh. 11 - Analyzing Changes in Balance Sheet Accounts Refer...Ch. 11 - Prob. 18CECh. 11 - Prob. 19CECh. 11 - Determining Net Cash Flow from Investing...Ch. 11 - Prob. 21CECh. 11 - Prob. 22CECh. 11 - Cash Receipts from Customers Singleton Inc. had...Ch. 11 - Prob. 24CECh. 11 - Prob. 25CECh. 11 - Prob. 26BECh. 11 - Prob. 27BECh. 11 - Analyzing Balance Sheet Accounts A review of the...Ch. 11 - Prob. 29BECh. 11 - Prob. 30BECh. 11 - Prob. 31BECh. 11 - Prob. 32BECh. 11 - Prob. 33BECh. 11 - Classification of Cash Flows A review of the...Ch. 11 - Classification of Cash Flows The following are...Ch. 11 - Analyzing Changes in Balance Sheet Accounts A...Ch. 11 - Analyzing the Accounts Casey Company uses a...Ch. 11 - Analyzing the Accounts The controller for Summit...Ch. 11 - Reporting Net Cash Flow from Operating Activities...Ch. 11 - Prob. 40ECh. 11 - Determining Cash Flows from Investing Activities...Ch. 11 - Determining Cash Flows 1from Investing Activities...Ch. 11 - Determining Cash Flows from Financing Activities...Ch. 11 - Prob. 44ECh. 11 - Partial Statement of Cash Flows Service Company...Ch. 11 - Prob. 46ECh. 11 - Prob. 47ECh. 11 - Preparing Net Cash Flows from Operating...Ch. 11 - Preparing a Statement of Cash Flows-Direct Method...Ch. 11 - Preparing a Statement of Cash Flows-Direct Method...Ch. 11 - Prob. 51ECh. 11 - Prob. 52PSACh. 11 - Prob. 53PSACh. 11 - Classification of Cash Flows Rolling Meadows...Ch. 11 - Prob. 55PSACh. 11 - Preparing a Statement of Cash Flows Monon Cable...Ch. 11 - Prob. 57PSACh. 11 - Preparing Net Cash Flows from Operating...Ch. 11 - Using a Spreadsheet to Prepare a Statement of Cash...Ch. 11 - Prob. 52PSBCh. 11 - Prob. 53PSBCh. 11 - Prob. 54PSBCh. 11 - Preparing a Statement of Cash Flows Volusia...Ch. 11 - Prob. 56PSBCh. 11 - Prob. 57PSBCh. 11 - Prob. 58PSBCh. 11 - Using a Spreadsheet to Prepare a Statement of Cash...Ch. 11 - Prob. 60.1CCh. 11 - Prob. 60.2CCh. 11 - Prob. 60.3CCh. 11 - Prob. 61.1CCh. 11 - Profitability Declines and the Statement of Cash...Ch. 11 - Prob. 61.3CCh. 11 - Prob. 61.4CCh. 11 - Prob. 62.1CCh. 11 - Prob. 62.2CCh. 11 - Prob. 62.3CCh. 11 - Income, Cash Flow, and Future Losses On January L...Ch. 11 - Income, Cash Flow, and Future Losses On January L...Ch. 11 - Income, Cash Flow, and Future Losses On January L...Ch. 11 - Prob. 63.4CCh. 11 - Researching Accounting Standards: Dissenting Views...Ch. 11 - Prob. 64.2CCh. 11 - Prob. 65.1CCh. 11 - Prob. 65.2CCh. 11 - Prob. 65.3CCh. 11 - Prob. 65.4CCh. 11 - Prob. 65.5CCh. 11 - Prob. 65.6CCh. 11 - Prob. 65.7CCh. 11 - Prob. 65.8CCh. 11 - Prob. 66.1CCh. 11 - Prob. 66.2CCh. 11 - Prob. 66.3CCh. 11 - Prob. 66.4CCh. 11 - Comparative Analysis: Under Armour, Inc., versus...Ch. 11 - Prob. 67.1CCh. 11 - CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT The...
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- Determining Cash Flows from Investing Activities Burns Companys 2019 and 2018 balance sheets presented the following data for equipment: During 2019, equipment costing $41,000 with accumulated depreciation of $36,700 was sold for cash, producing a $3,200 gain. Required: 1. Calculate the amount of depreciation expense for 2019. 2. Calculate the amount of cash spent for equipment during 2019. 3. Calculate the amount that should be included as a cash inflow from the disposal of equipment.arrow_forwardCHALLENGE PROBLEM In this chapter, you learned about three important financial statements: the income statement, statement of owners equity, and balance sheet. As mentioned in the margin note on page 34, most firms also prepare a statement of cash flows. Part of this statement reports the cash received from customers and cash paid for goods and services. REQUIRED Take another look at the Demonstration Problem for Kenny Youngs Home and Away Inspections. Note that when revenues are measured based on the amount earned, and expenses are measured based on the amount incurred, net income for the period was 4,165. Now, compute the difference between cash received from customers and cash paid to suppliers of goods and services by completing the form provided below. Are these measures different? Which provides a better measure of profitability?arrow_forwardUsing a Spreadsheet to Prepare a Statement of Cash Flows Fleet Limousine Service Inc. began operations in late March 2019. At the end of 2019, the following balance sheet was prepared for Fleet. Required: 1. Using a spreadsheet, prepare a statement of cash flows for 2019. Assume Fleet Limousine uses the indirect method. 2. CONCEPTUAL CONNECTION Discuss whether Fleet Limousine appeals to have matched the timing of inflows and outflows of cash.arrow_forward
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