FINANCIAL ACCT-CONNECT
8th Edition
ISBN: 9781266627903
Author: Wild
Publisher: INTER MCG
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Textbook Question
Chapter 12, Problem 9QS
Computing financing cash flows P3
The following selected information is from Princeton Company’s comparative balance sheets.
The company’s net income for the year ended December 31, 2016, was $48,000.
- Compute the cash received from the sale of its common stock during 2016.
- Compute the cash paid for dividends during 2016.
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Comprehensive: Balance Sheet from Statement of Cash Flows
Mills Company prepared the following balance sheet at the beginning of 2016:
Balance SheetJanuary 1, 2016
Assets
Liabilities and Shareholders' Equity
Cash
$ 1,000
Accounts payable
$ 4,000
Accounts receivable (net)
3,900
Salaries payable
1,100
Inventory
4,700
Total Liabilities
$ 5,100
Land
9,800
Common stock, $10 par
13,500
Buildings and equipment
68,900
Additional paid-in capital
11,200
Less: Accumulated depreciation
(14,100)
Retained earnings
44,400
Total Assets
$ 74,200
Total Liabilities and Shareholders' Equity
$74,200
At the end of 2016, Mills prepared the following statement of cash flows:
Statement of Cash FlowsFor Year Ended December 31, 2016
Operating Activities:
Net income
$ 5,400
Adjustments for differences between income flowsand cash flows from operating activities:
Add: Depreciation expense
1,900
Decrease in…
Adjust the Cash BalanceWe obtain the following 2018 forecasts of selected financial statement line items for Journey Company.
$ millions
2017 Actual
2018 Est.
Net Sales
$747,442
$779,327
Marketable securities
67,096
62,096
Long-term debt
346,558
308,437
Treasury stock (deducted from equity)
51,174
51,174
Cash generated by operations
57,918
Cash used for investing
(15,130)
Cash used for financing
(54,438)
Total net change in cash
(11,650)
Cash at beginning of period
51,141
Cash at end of period
$39,491
a. Does forecasted cash deviate from the normal level for this company?Calculate the company's normal cash level as a percentage of sales.Round answer to one decimal place.Answer%
Using the rounded answer above, compute what should be the normal cash balance for FY2018.Round answer to the nearest million.
million
C. Complete the following statement of cash flows assuming long-term debt is used to adjust the forecasted cash balance.
Use…
Reading Apple Inc.’s Statement of Cash Flows
The following items appeared in the Investing Activities section of Apple Inc.’s statement of cash flows included in Form 10-K for the year ended September 26, 2015. (All amounts are in millions of dollars.)
2015
2014
2013
Purchases of marketable securities
$(166,402)
$(217,128)
$(148,489)
Proceeds from maturities of marketable securities
14,538
18,810
20,317
Proceeds from sales of marketable securities
107,447
189,301
104,130
Required:
1. What amount did Apple spend in 2015 to purchase marketable securities?$fill in the blank 1 million
How does this amount compare to the amounts spent in the two prior years?
This was $fill in the blank 2 million less than it spent in 2014.
This was $fill in the blank 4 million more than it spent in 2013.
2. What amount did Apple receive from marketable securities that matured in 2015?$fill in the blank 6 million
How does this amount compare to the amounts received in the…
Chapter 12 Solutions
FINANCIAL ACCT-CONNECT
Ch. 12 - What is the reporting purpose of the statement of...Ch. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Describe the direct method of reporting cash flows...Ch. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 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 - Computing financing cash flows P3 The following...Ch. 12 - Prob. 10QSCh. 12 - Prob. 11QSCh. 12 - Prob. 12QSCh. 12 - Prob. 13QSCh. 12 - Refer to the data in QS 12-11. How much cash is...Ch. 12 - Prob. 15QSCh. 12 - Prob. 16QSCh. 12 - Prob. 17QSCh. 12 - Prob. 18QSCh. 12 - Prob. 19QSCh. 12 - Prob. 20QSCh. 12 - The following transactions and events occurred...Ch. 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. 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 - Santana Rey, owner of Business Solutions, decides...Ch. 12 - Prob. 1BTNCh. 12 - Prob. 2BTNCh. 12 - Prob. 3BTNCh. 12 - Prob. 4BTNCh. 12 - Access the March 31, 2015, filing of the 10-K...Ch. 12 - Prob. 6BTNCh. 12 - Prob. 8BTNCh. 12 - Prob. 10BTN
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