NEW MyLab Accounting with Pearson eText -- Access Card -- for Managerial Accounting
4th Edition
ISBN: 9780133451481
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Question
Chapter 13, Problem 13.44ACT
1.
To determine
To provide: The answer to the following questions using the statement of cash flows of the company S:
a. Is Company S generating cash from its operations?
b. What investing activities the company has been involved in over the past three years. Are investing activities an overall source or use of funds for the company?
c. What financing activities has the company been undertaking in the past three years? Has it been paying dividends to its common stockholders?
d. How will the closure of the Kmart and S stores impact the 2016 statement of cash flows?
2.
To determine
To provide: The answer to the following questions using the statement of cash flows of the company W:
a. Is Company W generating cash from its operations?
b. What investing activities the company has been involved in over the past three years. Are investing activities an overall source or use of funds for the company?
c. What financing activities has the company been undertaking in the past three years? Has it been paying dividends to its common stockholders?
d. How will the closure of the W stores impact the 2016 statement of cash flows?
3.
To determine
To identify: The Company which is healthier by using the statement of cash flows.
4.
To determine
The reason for using fiscal year-ends around January 31 rather than using a calendar year-end of December 31 by the companies S and W.
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(Learning Objectives 1, 7: Show how to speed up cash flow from receivables;evaluate liquidity through ratios) Norfolk Co., Inc., an electronics and appliance chain,reported these figures in millions of dollars:Net sales .........................................Receivables at end of year...............2019$398,5003,8602018$418,5004,110Requirements1. Compute Norfolk’s days’ sales in receivables or days’ sales outstanding (DSO) during 2019.(For this exercise, use “net sales” for “net credit sales” when calculating ratios.)2. Is Norfolk’s DSO long or short? Nico Networks takes 39 days to collect its average levelof receivables. Divencenzo, the overnight shipper, takes 33 days. What causes Norfolk’scollection period to be so different?
A 13-44 Analyzing statements of cash flows (Learning Objectives 1, 2, & 3) Sears Holding Corporation (SHLD) announced in April 2016 that it would be closing 68 Kmart and 10 Sears stores during the second half of 2016. The stores it is closing have not been profitable for Sears, and it is looking to improve profitability with the closures. Similarly, Wal-Mart Stores, Inc. (WMT) announced in January 2016 that it would be closing 269 stores worldwide. Again, this move is an effort to increase profitability for Wal-Mart. Sears' fiscal year-end is the Saturday closest to January 31. Following are its statements of cash flows for the most recent three years.
Sears Holding Corporation Statements of Cash Flows (in millions)
Year Ended
Jan.30,2016
Jan.31,2015
Feb. 1,2014
Operating activities:
Net income (loss)
$(1,128)
$(1,810)
$(1,116)
Adjustments to convert to cash basis
(1,039)
423
7
Net cash used by operations
(2,167)…
A 13-44 Analyzing statements of cash flows (Learning Objectives 1, 2, & 3) Sears Holding Corporation (SHLD) announced in April 2016 that it would be closing 68 Kmart and 10 Sears stores during the second half of 2016. The stores it is closing have not been profitable for Sears, and it is looking to improve profitability with the closures. Similarly, Wal-Mart Stores, Inc. (WMT) announced in January 2016 that it would be closing 269 stores worldwide. Again, this move is an effort to increase profitability for Wal-Mart. Sears' fiscal year-end is the Saturday closest to January 31. Following are its statements of cash flows for the most recent three years.
Sears Holding Corporation Statements of Cash Flows (in millions)
Year Ended
Jan.30,2016
Jan.31,2015
Feb. 1,2014
Operating activities:
Net income (loss)
$(1,128)
$(1,810)
$(1,116)
Adjustments to convert to cash basis
(1,039)
423
7
Net cash used by operations
(2,167)…
Chapter 13 Solutions
NEW MyLab Accounting with Pearson eText -- Access Card -- for Managerial Accounting
Ch. 13 - (Learning Objective 1) Which of the following is...Ch. 13 - Prob. 2QCCh. 13 - Prob. 3QCCh. 13 - Prob. 4QCCh. 13 - Prob. 5QCCh. 13 - Prob. 6QCCh. 13 - Prob. 7QCCh. 13 - Prob. 8QCCh. 13 - Prob. 9QCCh. 13 - (Learning Objective 3) Which one of the following...
Ch. 13 - Prob. 13.1SECh. 13 - Prob. 13.2SECh. 13 - Prob. 13.3SECh. 13 - Prob. 13.4SECh. 13 - Prob. 13.5SECh. 13 - Calculate financing cash flows (Learning...Ch. 13 - Prob. 13.7SECh. 13 - Prob. 13.8SECh. 13 - Prob. 13.9SECh. 13 - Prob. 13.10SECh. 13 - Prob. 13.11SECh. 13 - Prob. 13.12AECh. 13 - Prob. 13.13AECh. 13 - Prob. 13.14AECh. 13 - Calculate operating cash flows (indirect method)...Ch. 13 - Prob. 13.16AECh. 13 - Prob. 13.17AECh. 13 - Prob. 13.18AECh. 13 - Prob. 13.19AECh. 13 - Prob. 13.20AECh. 13 - Classify sustainable activities effect on cash...Ch. 13 - Prob. 13.22BECh. 13 - Prob. 13.23BECh. 13 - Prob. 13.24BECh. 13 - Calculate operating cash flows (indirect method)...Ch. 13 - Prob. 13.26BECh. 13 - Prob. 13.27BECh. 13 - Prob. 13.28BECh. 13 - Prob. 13.29BECh. 13 - Prob. 13.30BECh. 13 - Classify sustainable activities effect on cash...Ch. 13 - Prob. 13.32APCh. 13 - Prepare statement of cash flows (indirect method)...Ch. 13 - Prob. 13.34APCh. 13 - Prob. 13.35APCh. 13 - Prob. 13.36BPCh. 13 - Prepare statement of cash flows (indirect method)...Ch. 13 - Prob. 13.38BPCh. 13 - Prob. 13.39BPCh. 13 - Prob. 13.40SCCh. 13 - Discussion Analysis A13-41 Discussion Questions...Ch. 13 - Prob. 13.42ACTCh. 13 - Ethics involved with statement of cash flows...Ch. 13 - Prob. 13.44ACTCh. 13 - Prob. 13.45ACT
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