FINANCIAL ACCOUNTING FUNDAMENTALS W/ CO
7th Edition
ISBN: 9781264017478
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 13E
To determine
Cash Flow Statement:
Cash flow statement is that statement in which, transaction related to cash are recorded. It is mandatory report and included in the financial statement of the company. It is divided into three parts operating activities, investing activity, and financial activity
To Prepare: Cash flow statement
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Cash Flows from Operating Activities-Direct Method
The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following:
a. If sales for the current year were $607,300 and accounts receivable decreased by $38,900 during the year, what was the amount of
cash received from customers?
b. If income tax expense for the current year was $57,900 and income tax payable decreased by $7,500 during the year, what was the
amount of cash payments for income taxes?
c. Briefly explain why the cash received from customers in part (a) is different from sales.
Because the customers paid
than the amount of sales for the period, cash received from customers
sales made on account by $38,900 during the current year.
Cash Flows from Operating Activities—Direct Method
The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following:
a. If sales for the current year were $753,500 and accounts receivable decreased by $48,400 during the year, what was the amount of cash received from customers?$
b. If income tax expense for the current year was $50,600 and income tax payable decreased by $5,500 during the year, what was the amount of cash payments for income taxes?
Accounting
Suppose that a company's cash flow statement showed the following:
o Net Income: $19,917.48
o Depreciation: $3,109.46
o Accounts receivable: $-996.63
o Inventory: $489.61
o Accounts payable: $984.18
What is this company's net cash from operating activities?
$22,519.92
$23,014.49
$23,516.55
$20,394.64
$23,504.10
Chapter 12 Solutions
FINANCIAL ACCOUNTING FUNDAMENTALS W/ CO
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
Knowledge Booster
Similar questions
- A company reports the amounts below in its financial statements. Net cash flow from operating activities $37,570 Total net cash flow 73,440 Current liabilities beginning of year 42,240 Current liabilities end of year 47,520 What is the company's operating cash flows to current liabilities ratio at the end of the year? Select one: a. 1.64 b. None of these are correct c. 0.79 d. 1.55 e. 0.84arrow_forwardQUESTION 9 Rudy Company reported net income of $13,110 for the current year. During the year, Inventory decreased by $1,836, Wages Payable decreased by $2,270, Accounts Receivable increased by $4,196, and Depreciation Expense was $2,827. If the indirect method is used, what is the net cash provided by operating activities?arrow_forwardCalculator The following information is available from the current period financial statements: $103,184 Net income Depreciation expense 29,117 Increase in accounts receivable 16,270 Decrease in accounts payable 15,506 Determine the net cash flow from operating activities using the indirect method. Select the correct answer. $100,525 $164,077 $42,291 $103,184 4:10 PMarrow_forward
- A company reported average total assets of $1,240,000 in Year 1 and $1,510,000 in Year 2. Its net operating cash flow was $102,920 in Year 1 and $138,920 in Year 2. (1) Calculate its cash flow on total assets ratio for both years. (2) Did its cash flow on total assets improve in Year 2 versus Year 1?arrow_forwardCash Flows from (Used for) Operating Activities-Direct Method The cash flows from (used for) operating activities are reported by the direct method on the statement of cash flows. Determine the following: a. If sales for the current year were $668,000 and accounts receivable decreased by $37,400 during the year, what was the amount of cash received from customers? b. If income tax expense for the current year was $54,900 and income tax payable decreased by $6,600 during the year, what was the amount of cash paid for income taxes? c. Briefly explain why the cash received from customers in part (a) is different from sales. Because the customers paid exceeded is less than than the amount of sales for the period, cash received from customers sales made on account by $37,400 during the current year. Previous Next >arrow_forwardThe following information is available from the current period financial statements: Net income $116,183 Depreciation expense 22,347 Increase in accounts receivable 16,987 Decrease in accounts payable (18,309) The net cash flows from operating activities using the indirect method is a.$58,540 b.$173,826 c.$116,183 d.$103,234arrow_forward
- The following information is available from the current period financial statements: Net income $136,519 Depreciation expense 20,671 Increase in accounts receivable 17,801 Decrease in accounts payable 29,314 The net cash flow from operating activities using the indirect method is a.$204,305 b.$110,075 c.$136,519 d.$68,733arrow_forwardQuestion Content Area The following information is available from the current period financial statements: Net income $102,978 Depreciation expense 26,870 Increase in accounts receivable 15,293 Decrease in accounts payable (29,031) The net cash flows from operating activities using the indirect method isarrow_forwardAnswer in 20 minutes The following information is available from the current period financial statements: Net income $126,307 Depreciation expense 23,648 Increase in accounts receivable 16,473 Decrease in accounts payable (19,595)The net cash flows from operating activities using the indirect method is a.$126,307b.$113,887c.$66,591d.$186,023arrow_forward
- View Policies Current Attempt in Progress Accounts receivable arising from sales to customers amounted to $88000 and $71000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $293000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is O $276000. O $222000. O $293000. O $310000. Attempts: 0 of 1 used Submit Answer Save for Laterarrow_forwardIf a company's net cash flows from operating activities is $1,500,000 for a year and its end of the year cash and cash equivalents balance is $750,000, determine the company's ratio of cash to monthly cash expenses. a.6:1 b.2:1 c.5:1 d.9:1arrow_forwardView Policies Current Attempt in Progress A Accounts receivable arising from sales to customers amounted to $77000 and $76000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $281000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is O $205000. O $279000. O $282000. O $281000. N Save for Later @ 2 W S #3 FS X E $ 4 888 R C 5 LL F FR MacBook Air T 6 V FO G & Y 7 H B Attempts: 0 of 1 used +00 8 U 9 Submit Answer O N Marrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub