FINANCIAL ACCT-CONNECT
8th Edition
ISBN: 9781266627903
Author: Wild
Publisher: INTER MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
Prepare a schedule of net cash provided by operating activities.
- Prepare the Operating Activities Section of a Statement of Cash Flows using the Indirect. ?
FILE
HOME
INSERT
PAGE LAYOUT
FORMULAS
DATA
REVIEW
VIEW
Sig
Calibri
-11
A A
%
Alignment Number Conditional Format as Cell
Formatting Table Styles
Paste
BIU
Cells
Editing
Clipboard
Font
Styles
A1
fe
The following information is for FloorCo, Inc. for the year just ended:
A
B
D
E
G
1 The followng information is for FloorCo, Inc. for the year just ended:
3
Beginning of
4
End of year
year
5 Current assets:
Cash
75,000 $
90,000
7.
Accounts receivable
158,000
140,000
8
Inventory
285,000
246,000
9.
Prepaid expenses
11,000
16,000
10
11 Current liabilities
12
Accounts payable
284,000
302,000
13
Accrued liabiities
9,500
11,200
14
Income taxes payable
27,000
24,000
15
16
Net income
2$
94,500
17
18
Accumulated depreciation
19
total credits
45,000
20
21 Floor Company did not record any gains or losses during the year.
22
23 Prepare a schedule…
(1) During Year 1, Hardy Merchandising Company purchased $15,000 of inventory on account. (2) Hardy sold inventory on account that
cost $11,300 for $16,900. (3) Cash payments on accounts payable were $9,400. (4) There was $15,000 cash collected from accounts
receivable. (5) Hardy also paid $3,500 cash for operating expenses. Assume that Hardy started the accounting period with $24,500 in
both cash and common stock.
Required:
a. Identify the events described in the preceding paragraph and record them in a horizontal statements model like the following one.
Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing
activities (FA),
b. What is the balance of accounts receivable at the end of Year 1?
c. What is the balance of accounts payable at the end of Year 1?
d. What are the amounts of gross margin and net income for Year 1?
e. Determine the amount of net cash flow from operating activities.
Complete this…
PARNELL COMPANY
Income Statement
For the Year Ended December 31, 2021
($ in thousands)
Revenues and gains:
Sales
$890
11
$901
Gain on sale of building
Expenses and loss:
Cost of goods sold
Salaries
$ 345
129
53
Insurance
132
Depreciation
Interest expense
Loss on sale of equipment
59
13
731
170
Income before tax
85
Income tax expense
$ 85
Net income
PARNELL COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2021 and 2020
($ in thousands)
Year
Change
$ 61
2021
2020
Cash
152
91
Accounts receivable
Inventory
342
207
135
312
57
228
120
78
181
(131)
(49)
120
36
17
(37)
443
Prepaid insurance
Accounts payable
Salaries payable
Deferred tax liability
Bond discount
106
108
84
61
218
Chapter 12 Solutions
FINANCIAL ACCT-CONNECT
Ch. 12 - What is the reporting purpose of the statement of...Ch. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Describe the direct method of reporting cash flows...Ch. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 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 - Computing financing cash flows P3 The following...Ch. 12 - Prob. 10QSCh. 12 - Prob. 11QSCh. 12 - Prob. 12QSCh. 12 - Prob. 13QSCh. 12 - Refer to the data in QS 12-11. How much cash is...Ch. 12 - Prob. 15QSCh. 12 - Prob. 16QSCh. 12 - Prob. 17QSCh. 12 - Prob. 18QSCh. 12 - Prob. 19QSCh. 12 - Prob. 20QSCh. 12 - The following transactions and events occurred...Ch. 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. 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 - Santana Rey, owner of Business Solutions, decides...Ch. 12 - Prob. 1BTNCh. 12 - Prob. 2BTNCh. 12 - Prob. 3BTNCh. 12 - Prob. 4BTNCh. 12 - Access the March 31, 2015, filing of the 10-K...Ch. 12 - Prob. 6BTNCh. 12 - Prob. 8BTNCh. 12 - Prob. 10BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Spreadsheet and Statement of Cash Flows The following information was taken from Lambcrson Companys accounting records:arrow_forwardFinancial data for Otto Company follow: a. Compute the ratio of cash to monthly cash expenses. b. Interpret the results computed in (a).arrow_forwardThe income statement and the cash flows from operating activities section of the statement of cash flows are provided below for Syntric Company. The merchandise inventory account balance neither increased nor decreased during the reporting period. Syntric had no liability for insurance, deferred income taxes, or interest at any time during the period. Sales Cost of goods sold Gross margin Salaries expense Insurance expense Depreciation expense Depletion expense Interest expense Gains and losses: Gain on sale of equipment Loss on sale of land Income before tax Income tax expense SYNTRIC COMPANY Income Statement For the Year Ended December 31, 2024 ($ in thousands) Net income Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid to employees Cash paid for interest Cash paid for insurance Cash paid for income tax Net cash flows from operating activities $35.0 16.9 9.0 3.4 10.4 $ 271.7 (168.8) 102.9 (74.7) 19.0 (6.4) 40.8 (20.4) $ 20.4 $225.0…arrow_forward
- Green Brands, Inc. (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBI's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 $52,000 72,000 32,000 28,000 Accounts receivable $48,000 78,000 24,000 31,000 Merchandise inventory Prepaid insurance Accounts payable Salaries payable 8,200 7,800 Unearned service revenue 2,400 3,600 The Year 2 income statement is shown below: Income Statement $ 720,000 (398,000) 322,000 6,000 (36,000) (195,000) (12,000) 85,000 4,500 Sales Cost of goods sold Gross margin Service revenue Insurance expense Salaries expense Depreciation expense Operating income Gain on sale of equipment Net income 89,500 Required a. Prepare the operating activities section of the statement of cash flows using the direct method. b. Prepare the operating activities section of the statement of cash flows using the indirect method.arrow_forwardCOMPLETE THE STATEMENT OF CASH FLOWS BY REFERENCING TO THE CELLS. DETERMINE THE ANSWERS BY FALLOWING THIS FORMULA SAMPLE: ='BALANCE SHEET'!C15-'BALANCE SHEET'!B15arrow_forwardWhat is the IRR of the following set of cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Year 0123 Cash Flow -$ 16,100 6,800 8,100 6,600 IRR %arrow_forward
- Using a spreadsheet to complete the statement of cash flows—indirect method Companies can use a spreadsheet to complete the statement of cash flows. Each item that follows is recorded in the transaction analysis columns of the spreadsheet. a. Net income b. Increases in current assets (other than Cash) c. Decreases in current liabilities d. Cash payment for acquisition of plant assets e. Cash receipt from issuance of common stock f. Depreciation expense Identify each as being recorded by a Debit or Credit in the statement of cash flows section of the spreadsheet.arrow_forwardA company uses a spreadsheet to prepare its statement of cash flows. Indicate whether each of the followingitems would be recorded in the Debit column or Credit column of the spreadsheet’s statement of cashflows section. Increase in interest payablearrow_forwardBased on the cash flow diagram, match the time period with its appropriate cash flow type. $2,500 $1,000 (+) 1 3 4 (-) Time $2,000 а. The cash flow in time period O. Receipt b. The cash flow in time period 1. Expenditure С. The cash flow in time period 4.arrow_forward
- What is the IRR of the following set of cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Year 0 -~3 1 2 IRR Cash Flow -$ 16,900 7,600 8,900 7,400 %arrow_forwardMatch (by letter) the following items with the description or example that best fits. Each letter is used only once.Terms1. Operating activities.2. Investing activities.3. Financing activities.4. Noncash activities.5. Indirect method.6. Direct method.7. Depreciation expense.8. Cash return on assets.Descriptionsa. Begins with net income and then lists adjustments to net income in order to arrive at operating cash flows.b. Item included in net income, but excluded from net operating cash flows.c. Net cash flows from operating activities divided by average total assets.d. Cash transactions involving lenders and investors.e. Cash transactions involving net income.f. Cash transactions for the purchase and sale of long-term assets.g. Purchase of long-term assets by issuing stock to seller.h. Shows the cash inflows and outflows from operations such as cash received from customers and cash paid for inventory, salaries, rent, interest, and taxes.arrow_forwardStep 2 of the visual inspection method of preparing the statement of cash flows reads: For each ________________ item, determine the increase or decrease and whether it caused an inflow or outflow of cash. If so, report it in the appropriate category. balance sheet income statement shareholders' equity or retained earnings statement trial balancearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305654174/9781305654174_smallCoverImage.gif)
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License