Managerial Accounting: Tools for Business Decision Making 7e + WileyPLUS Registration Card
7th Edition
ISBN: 9781119036432
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: Wiley (WileyPLUS Products)
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Question
Chapter 13, Problem 13.8AP
(a)
To determine
Statement of cash flows
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
To prepare: The statement of cash flows using the direct method.
(b)
To determine
To determine: The amount of free cash flow.
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create a statement of cash flows with the given information:
Scruggs, Inc.
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Balance Sheet
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December 31,
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2017
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2016
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Cash
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$17,000
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$12,000
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Account receivable
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        60,000
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        40,000
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Inventory
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        84,000
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        70,000
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Prepaid expenses
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          6,000
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          4,000
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Property, Plant & Equipment
      250,000
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      210,000
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Accumulated depreciation
      (60,000)
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      (48,000)
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$357,000
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$288,000
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Accounts payable
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$35,000
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$40,000
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Interest payable
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          3,000
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Income taxes payable
        22,000
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        12,000
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Bonds payable (due in 2020)
        90,000
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Common Stock $5 par
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Retained Earnings
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Statement of Cash Flows—Indirect Method
The following balances are available for Chrisman Company:
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 December 31
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2017
Â
2016
Cash
$12,200
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$15,300
Accounts receivable
30,500
Â
22,900
Inventory
24,200
Â
40,400
Prepaid rent
13,700
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9,200
Land
114,400
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114,400
Plant and equipment
610,000
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457,500
Accumulated depreciation
(99,100)
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(45,800)
   Totals
$705,900
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$613,900
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Accounts payable
$18,300
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$15,300
Income taxes payable
4,600
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7,600
Short-term notes payable
53,400
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38,100
Bonds payable
114,000
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153,000
Common stock
305,000
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228,800
Retained earnings
210,600
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171,100
   Totals
$705,900
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$613,900
Bonds were retired during 2017 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. The depreciation expense for the year was $53,300. Net income was reported at $39,500.
Required:
1.  Prepare a statement of cash flows for 2017 using the indirect method in the Operating…
Required information
Problem 13-7 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2]
Skip to question
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[The following information applies to the questions displayed below.]
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Comparative financial statements for Weaver Company follow:
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Weaver CompanyComparative Balance Sheetat December 31
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This Year
Last Year
Assets
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Cash
$ 15
$ 11
Accounts receivable
291
228
Inventory
152
195
Prepaid expenses
8
5
Total current assets
466
439
Property, plant, and equipment
514
435
Less accumulated depreciation
(83)
(71)
Net property, plant, and equipment
431
364
Long-term investments
25
32
Total assets
$ 922
$ 835
Liabilities and Stockholders' Equity
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Accounts payable
$ 302
$ 225
Accrued liabilities
70
79
Income taxes payable
75
63
Total current liabilities
447
367
Bonds payable
199
171
Total liabilities
646
538
Common stock
162
202
Retained earnings
114
95
Total stockholders’ equity
276
297
Total liabilities and stockholders' equity
$…
Chapter 13 Solutions
Managerial Accounting: Tools for Business Decision Making 7e + WileyPLUS Registration Card
Ch. 13 - (a) What is a statement of cash flows? (b) Mark...Ch. 13 - Prob. 2QCh. 13 - Prob. 3QCh. 13 - Prob. 4QCh. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - Contrast the advantages and disadvantages of the...Ch. 13 - Prob. 9QCh. 13 - Prob. 10Q
Ch. 13 - Prob. 11QCh. 13 - Prob. 12QCh. 13 - Prob. 13QCh. 13 - Prob. 14QCh. 13 - Prob. 15QCh. 13 - During 2017. Doubleday Company converted 1,700.000...Ch. 13 - Prob. 17QCh. 13 - Prob. 18QCh. 13 - Prob. 19QCh. 13 - Prob. 20QCh. 13 - Prob. 21QCh. 13 - Prob. 13.1BECh. 13 - Classify items by activities. (LO 1), C Classify...Ch. 13 - Prob. 13.3BECh. 13 - Prob. 13.4BECh. 13 - Prob. 13.5BECh. 13 - Prob. 13.6BECh. 13 - Prob. 13.7BECh. 13 - Prob. 13.8BECh. 13 - Prob. 13.9BECh. 13 - Prob. 13.10BECh. 13 - The management of Morrow Inc. is trying to decide...Ch. 13 - Prob. 13.12BECh. 13 - Prob. 13.13BECh. 13 - Prob. 13.14BECh. 13 - Prob. 13.1DICh. 13 - Prob. 13.2DICh. 13 - Prob. 13.3DICh. 13 - Tabares Corporation had these transactions during...Ch. 13 - An analysis of comparative balance sheets, the...Ch. 13 - Cushenberry Corporation had the following...Ch. 13 - Prob. 13.4ECh. 13 - The current sections of Scoggin Inc.s balance...Ch. 13 - Prob. 13.6ECh. 13 - Rojas Corporations comparative balance sheets are...Ch. 13 - Here are comparative balance sheets for Velo...Ch. 13 - Prob. 13.9ECh. 13 - Compute net cash provided by operating...Ch. 13 - Suppose a recent income statement for McDonalds...Ch. 13 - Compute cash flow from operating activitiesdirect...Ch. 13 - The following information is taken from the 2017...Ch. 13 - You are provided with the following transactions...Ch. 13 - The following account balances relate to the...Ch. 13 - The income statement of Whitlock Company is...Ch. 13 - Prob. 13.4APCh. 13 - Prob. 13.5APCh. 13 - Prob. 13.6APCh. 13 - Prob. 13.7APCh. 13 - Prob. 13.8APCh. 13 - Prob. 13.9APCh. 13 - Prob. 13.10APCh. 13 - Prob. 13.11APCh. 13 - Prob. 13.1BYPCh. 13 - Prob. 13.2BYPCh. 13 - Comparative Analysis Problem: Amazon.com, Inc. vs....Ch. 13 - Prob. 13.4BYPCh. 13 - Prob. 13.5BYPCh. 13 - Prob. 13.7BYPCh. 13 - Ethics Case Wesley Corp. is a medium-sized...Ch. 13 - Prob. 13.9BYP
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