Connect Access Card for Financial Accounting: Information and Decisions
Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 12, Problem 6PSA
Summary Introduction

Cash Flow Statement:

Cash flow statement are refer as the statement which shows inflow and outflow of the cash in the business organization. Cash flow from operating activities can be made by two methods.

  1. Direct Method
  2. Indirect Method
  3. To determine:Computation of Cash Flow from operating activities of G’s Corporation for the year 2016.

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Preparing the direct method statement of cash flows Red Toy Company reported the following comparative balance sheet: Requirements Compute the collections from customers during 2018 for Red Toy Company. Sales Revenue totaled $134,000. Compute the payments for inventory during 2018. Cost of Goods Sold was $79,000.
Requirement: Prepare the statement of cash flows. Use the direct method of presenting cash flows from operating activities.  I. Problem 1: Aling Dorry's cash balance on January 1, 2017 was P20,000. The following were the transactions that affected cash during the period: a. Collections from customers for the sale of goods, P580,000 b. Cash receipt from loan obtained from a bank, P180,000 c. Cash receipt from additional investment by owner, P20,000 d. Payments to suppliers for the purchase of inventory, P120,000 e. Payments for employees salaries, P140,000 f. Payments for rent expense, P70,000 g. Payments for utilities expense, P20,000 h. Payments for the acquisition of equipment, P200,000 i. Cash disbursements for drawings by owner, P60,000   II. State whether the following accounts is used added or deducted on the accrual basis profit. a. Depreciation expense _________________________ b. Losses on sale of PPE ________________________ c. Increase in inventory ________________________…
Preparing the Statement of Cash Flows: Indirect Method E8A. Keeper Corporation's income statement for the year ended June 30, 2014, and its comparative balance sheets for June 30, 2014 and 2013 follow. Keeper Corporation Income Statement For the Year Ended June 30, 2014 Sales Cost of goods sold Gross margin Operating expenses Operating income Interest expense Income before income taxes Income taxes expense Net income Assets Keeper Corporation Comparative Balance Sheets June 30, 2014 and 2013 Cash Accounts receivable (net) Inventory Prepaid expenses Furniture Accumulated depreciation-furniture Total assets Liabilities and Stockholders' Equity Accounts payable Income taxes payable Notes payable (long-term) Common stock, $10 par value Retained earnings Total liabilities and stockholders' equity 2014 $ 69,900 21,000 43,400 3,200 55,000 (9,000) $183,500 $ 13,000 1,200 37,000 115,000 17,300 $183,500 $234,000 156,000 $ 78,000 45,000 $ 33,000 2,800 $ 30,200 12,300 $ 17,900 2013 $ 12,500 26,000…

Chapter 12 Solutions

Connect Access Card for Financial Accounting: Information and Decisions

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