Managerial Accounting - With Access
3rd Edition
ISBN: 9781259847424
Author: Whitecotton
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 12, Problem 4.1GAP
To determine
Concept introduction:
Cash Flow Statement:
A statement which defines changes occurring and their effects in the balance sheet and the income statement of the company and provides reasonable analysis with respect to it further breaking the analytical review into the categories of operational, investing and financing activities.
To prepare:
The cash flow statement for the current year ended on December
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Current Attempt in Progress Freida's Fashions Limited is an international clothing designer. The most recent statement of cash flows contained the following items. Classify each item as either a cash flow from operating activities, investing activities, or financing activities. 1. Cash received from customers 2. Cash received from issuing common shares 3. Cash paid to purchase equipment 4. Cash received from borrowing money from bank as a long-term loan 5. Cash paid to suppliers and employees Operating Activity Financing Activity Investing Activity Financing Activity Operating Activity V
The following transaction took place in ABC company for the month of January 2018
Transaction
a. the owner contributed cash of 80,000
b. purchased a new equipment for 75,000
c.sold old furniture for cash 6,000
d. repaid loan 1,500
e. owner withdrew cash 5,000 for personal use
Required
classify and prepare a statement of cash flow from the above transactions
This question has been answered
Question
1. Juana's sari-sari store had the following transactions during the year:
a. Purchase of goods. Paid cash Php 100,000
b. Sales of goods. Received cash Php 150,000
c. Paid utilities Php 30,000
d. Paid rent Php 10,000
e. Sold equipment for cash Php 100,000
f. Owner withdraws investment Php 10,000
1.Compute for the net cash flow generated by/used in operating activities.
2. Using the given above, compute for the net cash flow generated by/used in investing activities.
3. Using the given above,compute for the net cash flow generated by/used in financing activities.
Chapter 12 Solutions
Managerial Accounting - With Access
Ch. 12 - Compare the purposes of the income statement, the...Ch. 12 - What information does the statement of cash flows...Ch. 12 - Prob. 3QCh. 12 - What are the major categories of business...Ch. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - As a junior analyst, you are evaluating the...Ch. 12 - Prob. 12QCh. 12 - Prob. 13QCh. 12 - Prob. 14QCh. 12 - Prob. 15QCh. 12 - Prob. 1MCCh. 12 - Prob. 2MCCh. 12 - Prob. 3MCCh. 12 - Prob. 4MCCh. 12 - Prob. 5MCCh. 12 - Prob. 6MCCh. 12 - Prob. 7MCCh. 12 - Prob. 8MCCh. 12 - Prob. 9MCCh. 12 - Prob. 10MCCh. 12 - Prob. 1MECh. 12 - Prob. 2MECh. 12 - Prob. 3MECh. 12 - Prob. 4MECh. 12 - Prob. 5MECh. 12 - Prob. 6MECh. 12 - Prob. 7MECh. 12 - Prob. 8MECh. 12 - Prob. 9MECh. 12 - Interpreting Cash Flows from Operating, Investing,...Ch. 12 - Prob. 11MECh. 12 - Prob. 12MECh. 12 - Prob. 13MECh. 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 - Reporting and Interpreting Cash Flows from...Ch. 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. 21ECh. 12 - Prob. 22ECh. 12 - (Supplement 12B) Preparing a Statement of Cash...Ch. 12 - Prob. 1GAPCh. 12 - Prob. 2GAPCh. 12 - Prob. 3.1GAPCh. 12 - Prob. 3.2GAPCh. 12 - Prob. 4.1GAPCh. 12 - Prob. 4.2GAPCh. 12 - Prob. 5GAPCh. 12 - Preparing and Interpreting a Statement of Cash...Ch. 12 - Prob. 7.1GAPCh. 12 - Prob. 7.2GAPCh. 12 - Prob. 1GBPCh. 12 - Prob. 2GBPCh. 12 - Prob. 3.1GBPCh. 12 - Prob. 3.2GBPCh. 12 - Prob. 4.1GBPCh. 12 - Prob. 4.2GBPCh. 12 - Prob. 5GBPCh. 12 - Prob. 6GBP
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
- Provide journal entries to record each of the following transactions. For each, also identify *the appropriate section of the statement of cash flows, and s utility bill, $1,500arrow_forwardIn which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. borrowed from the bank for business loan B. declared dividends, to be paid next year C. purchased treasury stock D. purchased a two-year insurance policy E. purchased plant assetsarrow_forwardTo demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income. A. paid balance due for accounts payable $6,900 B. charged clients for legal services provided $5,200 C. purchased supplies on account $1,750 D. collected legal service fees from clients for current month $3,700 E. issued stock in exchange for a note payable $10,000arrow_forward
- Jarem Company showed 189,000 in prepaid rent on December 31, 20X1. On December 31, 20X2, the balance in the prepaid rent account was 226,800. Rent expense for 20X2 was 472,500. Required: 1. What amount of cash was paid for rent in 20X2? 2. CONCEPTUAL CONNECTION What adjustment in prepaid expenses is needed if the indirect method is used to prepare Jarems statement of cash flows?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_forwardWhich of the following transactions would affect operating cash flows reported in the statement of cash flows (all transactions involve cash) (may have more than one answer)? Check All That Apply Purchased $12,000 in supplies. Purchased a delivery truck for $12,000. Borrowed $50,000 from the bank. Paid the utility bill of $750. Provide services to customers for $27,000.arrow_forward
- Debit Credit Balance, December 31, prior year 13,800 Receipts from customers 82,800 Payments for inventory 42,400 Receipts from equipment sale 35,500 Payments for salaries 27,600 Receipts from issuing stock 55,200 Payments for land 69,000 Payments for a copyright 22,700 Payments for dividends 4,900 Balance, December 31, current year 20,700 Use the above Cash account to determine (a) cash flows used by investing activities and (b) cash flows provided by financing activities.arrow_forwardPlease no written by hand solutions Dr. Matthew Veterinary Services recorded the following cash transactions for the year: Paid $147000 for salaries. Paid $84700 to purchase equipment. Paid $48600 for utilities, supplies, insurance and : Paid $36300 for rent. Issued shares of stock for $59500. Paid $28100 in dividends. Collected $655000 from customers. Paid $4000 to purchase investments. What was the company's net cash provided (used) by investing activities? O $25200 • The amount cannot be determinedarrow_forwardCreate 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…arrow_forward
- 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…arrow_forwardUse the information in Exercise to prepare an October 31 statement of cash flows for Ernst Consulting. Assume the following additional information. a. The owner’s initial investment consists of $38,000 cash and $46,000 in land. b. The company’s $18,000 equipment purchase is paid in cash. c. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase and $5,250 in employee salaries yet to be paid. d. The company’s rent, telephone, and miscellaneous expenses are paid in cash. e. No cash has been collected on the $14,000 consulting fees earned.arrow_forwardKate has just completed her first year running Kate’s Cards. She has been preparing monthly income statements and balance sheets, so she knows that her company has been profitable and that there is cash in the bank. She has not, however, prepared a statement of cash flows. Kate provides you with the year-end income statement and balance sheet and asks that you prepare a statement of cash flows for Kate’s Cards. Additional information: 1. There were no disposals of equipment during the year. 2. Dividends in the amount of $1,300 were paid in cash during the year. 3. Prepaid expenses relate to operating expenses. Required a. Prepare a statement of cash flows for Kate’s Cards for the year ended August 31 using the in- direct method. Hint: Since this was Kate’s first year of operations, the beginning balance sheet account balances were zero. b. Prepare a statement of cash flows for Kate’s Cards for the year ended August 31 using the direct method. (Appendix 12A) KATE’S CARDS Income…arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License