Gen Combo Ll Financial Accounting Fundamentals; Connect Access Card
7th Edition
ISBN: 9781260581256
Author: John Wild
Publisher: McGraw-Hill Education
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Question
Chapter 12, Problem 10QS
a.
To determine
Introduction: A company prepares a statement of cash flow for calculating the amount of net decrease or increase in the cash balance during the year. The outflow and inflow of cash from the financing, operating, and investing activities are used to calculate the amount of decrease or increase in the cash balance during the year.
To calculate: The amount of cash received by A from the sale of equipment.
b.
To determine
Introduction: A company prepares a statement of cash flow for calculating the amount of net decrease or increase in the cash balance during the year. The outflow and inflow of cash from the financing, operating, and investing activities are used to calculate the amount of decrease or increase in the cash balance during the year.
To calculate: The amount of
c.
To determine
Introduction: A company prepares a statement of cash flow for calculating the amount of net decrease or increase in the cash balance during the year. The outflow and inflow of cash from the financing, operating, and investing activities are used to calculate the amount of decrease or increase in the cash balance during the year.
To calculate: The cost of new equipment purchased by A during the year.
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Analyzing Cash Flow Effects of Equipment Sale
Frontier Company sold equipment on June 30, 2020, for $30,000. The equipment had been depreciated $1,500 for the first six months of 2020, contributing to an
accumulated depreciation balance of $10,000 on June 30, 2020. The original cost of the equipment was $50,000.
Assuming the indirect method in presenting cash flows from operating activities, indicate any adjustments to net income in the operating activities section and any additions
or subtractions in the investing and financing activities sections.
• Note: Indicate a subtraction in the cash flow statement with a negative sign in the Amount column.
• Note: If an item is not included in the cash flow statement, enter a zero in the Amount column and "N/A" in the Cash Flow Section column.
Item
Amount
Cash Flow Section
Depreciation of equipment
Loss on sale of equipment
Gain on sale of equipment
Proceeds from sale of equipment $
REQUIRED
Study the statement of cash flows of Mantis Limited for the year ended 31 December 2021 and answer the following questions:
Calculate the following for the year ended 31 December 2021:
DepreciationÂ
Dividends paidÂ
Of what significance is this statement of cash flows to the shareholders of Mantis Limited?Â
Comment on the following:
Cash flows from operating activities (R181 800)Â
1.3.2. Increase in inventory (R808 000)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
Increase in receivables (R606 000)Â
Interest paid (R80 800)Â
Cash flows from investing activities (R2 343 200)Â
Â
INFORMATION
Â
Â
MANTIS LIMITED
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021
Â
R
Cash flows from operating activities
(181 800)
Operating profit
979 700
Depreciation
?
Profit before working capital changes
?
Working capital changes
(808 000)
Increase in inventory
(808 000)
Increase in receivables…
Preparing a Cash Flow Statement—Indirect Method
Sketchers Corporation’s recent comparative balance sheet and income statement follow.
Â
Balance Sheets, December 31
2019
2020
Assets
Â
Â
Cash and cash equivalents
$12,800
$54,400
Accounts receivable (net)
16,000
28,800
Inventory
32,000
38,400
Investment, long-term
6,400
Â
Plant assets
96,000
150,400
Accumulated depreciation
(16,000)
(22,400)
Total assets
$147,200
$249,600
Liabilities and Stockholders’ Equity
Â
Â
Accounts payable
$9,600
$16,000
Notes payable, short-term (nontrade)
12,800
9,600
Notes payable, long-term
32,000
57,600
Common stock, no-par
80,000
128,000
Retained earnings
12,800
38,400
Total liabilities andstockholders’ equity
$147,200
$249,600
Income Statement,For Year Ended December 31
2020
Sales revenue
$480,000
Cost of goods sold
(288,000)
Gross margin
192,000
Depreciation expense
(6,400)
Other operating expenses
(104,400)
Net income
$83,200
Â
Additional…
Chapter 12 Solutions
Gen Combo Ll Financial Accounting Fundamentals; Connect Access Card
Ch. 12 - Prob. 1MCQCh. 12 - Prob. 2MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQ
Ch. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQCh. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 13DQCh. 12 - Prob. 14DQCh. 12 - Prob. 15DQCh. 12 - Prob. 1QSCh. 12 - Prob. 2QSCh. 12 - Prob. 3QSCh. 12 - Prob. 4QSCh. 12 - Prob. 5QSCh. 12 - Prob. 6QSCh. 12 - Prob. 7QSCh. 12 - Prob. 8QSCh. 12 - Prob. 9QSCh. 12 - Prob. 10QSCh. 12 - Prob. 11QSCh. 12 - Prob. 12QSCh. 12 - Prob. 13QSCh. 12 - Prob. 14QSCh. 12 - Prob. 15QSCh. 12 - Prob. 16QSCh. 12 - Prob. 17QSCh. 12 - Prob. 18QSCh. 12 - Prob. 19QSCh. 12 - Prob. 20QSCh. 12 - Prob. 21QSCh. 12 - Prob. 22QSCh. 12 - Prob. 23QSCh. 12 - Prob. 24QSCh. 12 - Prob. 25QSCh. 12 - Direct: Computing operating cash outflows P5 Refer...Ch. 12 - Prob. 27QSCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 1PSACh. 12 - Prob. 2PSACh. 12 - Prob. 3PSACh. 12 - Prob. 4PSACh. 12 - Prob. 5PSACh. 12 - Prob. 6PSACh. 12 - Prob. 7PSACh. 12 - Prob. 8PSACh. 12 - Prob. 1PSBCh. 12 - Prob. 2PSBCh. 12 - Prob. 3PSBCh. 12 - Prob. 4PSBCh. 12 - Prob. 5PSBCh. 12 - Prob. 6PSBCh. 12 - Prob. 7PSBCh. 12 - Prob. 8PSBCh. 12 - Prob. 12SPCh. 12 - Prob. 1GLPCh. 12 - Prob. 2GLPCh. 12 - Prob. 3GLPCh. 12 - Prob. 1AACh. 12 - Prob. 2AACh. 12 - Prob. 3AACh. 12 - Prob. 1BTNCh. 12 - Prob. 2BTNCh. 12 - Prob. 3BTNCh. 12 - Prob. 4BTNCh. 12 - Prob. 5BTNCh. 12 - Prob. 6BTNCh. 12 - Prob. 7BTN
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