Managerial Accounting
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ISBN: 9781260195408
Author: Whitecotton
Publisher: MCG
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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
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Grey Company earned $5,000 of revenue on account during Year 1, but collected the cash associated with the receivables in Year 2. Based on this information
alone, under accrual accounting, the company will report revenue of.
$5,000 and cash inflow from operations of zero in Year 2
$5,000 and cash inflow from operations of zero in Year 1
zero and cash inflow from operations of $5,000 in Year 2
zero and cash inflow from operations of $5,000 in Year 1
Which 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.
planning entity owned by Elnora Adalem. The entity had the following transactions
The following transactions pertain to the operations of Party Consultants, an events
Problem #15
Classification of Events on Statement of Cash Flows
during the month:
1. Received a P180,000 cash investment from the owner.
2. Provided P400,000 services on account.
3. Incurred P220,000 of operating expenses on account.
4. Collected P320,000 cash from accounts receivable.
5. Allowed a P30,000 cash withdrawal to the owner of the business.
6. Paid P160,000 cash on accounts payable.
7. Performed services for P30,000 cash.
8. Paid P12,000 cash for expenses.
Required:
1. Classify each of these transactions as a cash flow from operating activities (OA),
investing activities (IA), or financing activities (FA). Transactions that do not affect
the statement of cash flows should be identified as "n/a".
2. Prepare a statement of cash flows.
Chapter 12 Solutions
Managerial Accounting
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
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- ! Required information [The following information applies to the questions displayed below.] As of December 31 of the current year, Armani Company's records show the following. Hint. The owner invested $2,600 cash during the year. $ 11,600 10,600 7,600 6,600 14,200 17,600 22,200 14,600 36,200 25,200 21,600 13,600 9,600 Cash Accounts receivable Supplies Equipment Accounts payable Armani, Capital, December 31, prior year Armani, Capital, December 31, current year Armani, Withdrawals Consulting revenue Rental revenue Salaries expense Rent expense Selling and administrative expenses Required: Prepare the statement of owner's equity for Armani Company for the current year ended December 31. ARMANI COMPANY Statement of Owner's Equity For Current Year Ended December 31 Armani, Capital, December 31, prior year Armani, Capital, December 31, current year $arrow_forward! Required information [The following information applies to the questions displayed below.] As of December 31 of the current year, Armani Company's records show the following. Hint. The owner invested $2,600 cash during the year. $ 11,600 10,600 7,600 6,600 14,200 17,600 22,200 14,600 36,200 25,200 21,600 13,600 9,600 Cash Accounts receivable Supplies Equipment Accounts payable Armani, Capital, December 31, prior year Armani, Capital, December 31, current year Armani, Withdrawals Consulting revenue Rental revenue Salaries expense Rent expense Selling and administrative expenses Required: Prepare the current year-end balance sheet for Armani Company. ARMANI COMPANY Balance Sheet December 31 Assets Liabilities Total liabilities Equity Total assets Total liabilities and equityarrow_forwardCan you explain how you got the figure for purchase of equipment (215,000) and also please answer the below multiple choice: The term cash as used on the statement of cash flows includes all the following EXCEPT: A) cash due from customers within 30 days. B) cash on hand. C) cash equivalents. D) cash in bank Which of the following statements accurately describes the statement of cash flows? A) It shows the relative proportion of debt and assets. B) It shows the link between accrual-based income and the cash reported on the balance sheet. C) It indicates when long-term debt will mature. D) It shows the link between book income and earnings per share. Which of the following is NOT a true statement about the statement of cash flows? A) It shows where cash came from and how it was spent. B) It reports why cash increased or decreased. C) It covers a specific span of time the same as the income statement. D) It shows how the profits or losses of the company were generated.…arrow_forward
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