Concept explainers
Ethic Issue
K.M wants to prepare cash flow statement for getting financial help in future from bank. He has worked in the organization for four years. From the last three years, his cash flow is negative, positive, and positive with respect to the 1st, 2nd and 3rd year. But in the fourth year, the inventory cost increased and cash flow from operations went down by 25%. He wants to determine whether the bank will help him in future. He wants to make some changes in the cash flow statement for the last four years. He knows that his cash flow from operations is better from the last four year. He wants a new project to work. He understands the business action so that he can turn the negative cash flow to the positive cash flow from operating activities.
1.
To identify: Two major actions to improve the cash flow from operation.
2.
To identify: Ethics and possible consequences of M’s decision to pursue these actions,
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Chapter 12 Solutions
FINANCIAL ACCOUNTING FUNDAMENTALS W/ CO
- Use the following information from Eiffel Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.arrow_forwardUse the following information from Coconut Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.arrow_forwardUse the following information from Birch Companys balance sheets to determine net cash flows from operating activities (indirect method), assuming net income for 2018 of $122,000.arrow_forward
- Use the following excerpts from Indigo Companys balance sheets to determine net cash flows from operating activities (indirect method), assuming net income for 2018 of $225,000.arrow_forwardUse the following excerpts from Unigen Companys financial information to prepare the operating section of the statement of cash flows (indirect method) for the year 2018.arrow_forwardUse the following excerpts from Swansea Companys financial information to prepare the operating section of the statement of cash flows (direct method) for the year 2018.arrow_forward
- Preparing a Statement of Cash Flows Volusia Company reported the following comparative balance sheets for 2019: Required: Prepare a statement of cash flows for Volusia using the indirect method to compute net cash flow from operating activities.arrow_forwardUse the following excerpts from Fromera Companys financial information to prepare the operating section of the statement of cash flows (direct method) for the year 2018.arrow_forwardUse the following excerpts from Tungsten Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.arrow_forward
- Mahoney Company has the following financial statements for 2017 and 2018. Assume that the purchase of equipment and the withdrawals were in the form of cash. Required Prepare a statement of cash flows for the year ended December 31, 2018. Check Figure Net cash flows from operating activities, 76,800arrow_forwardUse the following excerpts from Mountain Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.arrow_forward
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