Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781119034681
Author: Weygandt
Publisher: WILEY
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Chapter 13, Problem 13.9E
(a)
To determine
Cash Flow Statement:
Cash Flow Statement is a fundamental financial statement that renders valuable information regarding the
The cash flow statement also provides information regarding the net cash change that occurred during a period, classifying the activities into three categories those are cash from operating activities, investing, and financing activities.
In operating activities, cash affected transactions only recorded. In investing activities, investing transactions are recorded and in financial activities involve cash flows result from changes in long-term liabilities and shareholder’s equity.
To prepare: The statement of cash flows for 2017 using the indirect method.
(b)
To determine
Free cash flow describes the net cash provided from operating activities after making required adjustments for dividends and capital expenditures. In other words, it is the cash flow arrived after making payment for capital expenditures and dividend payments.
To determine: The free cash flow.
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Students have asked these similar questions
Gwynett Corporation comparative balance sheets at December 31:
Liabilities & Equity
Accounts payable
Taxes payable
Other short-term
payables
Bonds payable
Assets
2016
2016
2017
192,000
359,000
683,000
2017
Cash
Accounts receivable
Inventories
175,000
248,000
465,000
156,000
149,000
325,000
259,000
124,000
417,000
Land
Building &
machinery
Less: accumulated
depreciation
126,000
3,746,000
842,000
138,000
3,885,000
825,000
(916,000) (1,131,000) Common stock
846,000
863,000
Retained earnings
1,526,000
1,638,000
Total assets
3.844.000
4.126.000 Total liabilities &
3.844.000
4.126,000
equity
Supplementary information:
1. Dividends declared and paid in year 2017 were 74,000
2. Depreciation expense for year 2017 was 246,000
3. Machinery originally costing 61,000 was sold for 34,000 in 2017.
Using information in the balance sheet above and the supplementary disclosures, prepare a statement of
cash flows for Gwynett Corporation (Indirect Method) for the year ended December 31, 2017.
Wiemers Corporation’s comparative balance sheets are presented below.
WIEMERS CORPORATIONBalance SheetsDecember 31
2017
2016
Cash
$ 3,400
$ 4,000
Accounts receivable (net)
21,700
23,400
Inventory
10,200
7,500
Land
20,100
25,600
Buildings
69,700
69,700
Accumulated depreciation—buildings
(15,500
)
(10,700
)
Total
$109,600
$119,500
Accounts payable
$ 12,000
$ 31,400
Common stock
75,600
69,200
Retained earnings
22,000
18,900
Total
$109,600
$119,500
Wiemers’s 2017 income statement included net sales of $107,000, cost of goods sold of $59,700, and net income of $15,100.Compute the following ratios for 2017. (Round Debt to assets ratio to 1 decimal place, e.g. 1.6, or 1.6% and all other answers to 2 decimal places, e.g. 1.64, or 1.64% .)
(a)
Current ratio
enter your answer rounded to 2 decimal places
:1
(b)
Acid-test ratio…
Delta Designs, Inc.
Comparative Balance Sheet
December 31, 2018 and 2017
2018
2017
Assets
Total Current Assets
$32,250
$66,600
Property, Plant, and Equipment, Net
180,750
168,720
Other Assets
37,000
60,680
Total Assets
$250,000
$296,000
Liabilities
Total Current Liabilities
$30,500
$45,880
Long-term Debt
80,750
204,536
Total Liabilities
111,250
250,416
Stockholders' Equity
Total Stockholders' Equity
138,750
45,584
Total Liabilities and Stockholders' Equity
$250,000
$296,000
Perform a vertical analysis of
DeltaDelta
Designs' balance sheet for each year.
(Round the percent of total amounts to one decimal place, X.X%.)
Delta Designs, Inc.
Balance Sheet
December 31, 2018 and 2017
2018
Percent of Total…
Chapter 13 Solutions
Managerial Accounting: Tools for Business Decision Making
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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