Concept explainers
Cash Flow Statement:
Cash Flow Statement is a fundamental financial statement that renders valuable information regarding the
In operating activities, cash affected transactions only recorded. In investing activities, investing transactions are recorded and in financial activities involve
To determine: The cash receipts from customers for M. Company.
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Managerial Accounting: Tools for Business Decision Making
- Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400arrow_forwardMahoney Company has the following financial statements for 2017 and 2018. Assume that the purchase of equipment and the withdrawals were in the form of cash. Required Prepare a statement of cash flows for the year ended December 31, 2018. Check Figure Net cash flows from operating activities, 76,800arrow_forwardThe comparative balance sheet of Sloan company reveal that accounts receivable (before deducting allowance) increased by $15,000 in 2016. During the same period, the allowance for uncollectible accounts increased by $2,100. If sales revenue was $120,000 in 2016nand bad debt expenses were 2% of sales, how much cash was collected from customers during the year? Please show the work.arrow_forward
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- MC Corporation manufactures large-scale, high-performance computer systems. In a recent annual report, the balance sheet included the following information ($ in millions): 2015 2014 Current assets: Receivables, less allowances of $90 in 2015 and $72 in 2014 $ 3,977 $ 4,413 In addition, the income statement reported sales revenue of $24,704 ($ in millions) for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the current year was $25,737 ($ in millions). Note that there could have been significant recoveries of accounts receivable previously written off. Required:1. Compute the following ($ in millions): The net amount of bad debts written off or reinstated by EMC during 2015. The amount of bad debt expense or reduction of bad debt expense that EMC included in its income statement for 2015. 2. Suppose that EMC had used the direct write-off method to account for bad…arrow_forwardEMC Corporation manufactures large-scale, high-performance computer systems. In a recent annual report, the balance sheet included the following information ($ in millions): 2015 2014 Current assets: Receivables, less allowances of $90 in 2015 and $72 in 2014 $ 3,977 $ 4,413 In addition, the income statement reported sales revenue of $24,704 ($ in millions) for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the current year was $25,737 ($ in millions). Note that there could have been significant recoveries of accounts receivable previously written off. Required:1. Compute the following ($ in millions): The net amount of bad debts written off or reinstated by EMC during 2015. The amount of bad debt expense or reduction of bad debt expense that EMC included in its income statement for 2015. 2. Suppose that EMC had used the direct write-off method to account for bad…arrow_forwardThe following information is related to sales of ABC company for the year 2016. Cash collected from customers during the year 400,000 Included in the above : Advance received from customers for orders not delivered 50,000 Amount received from customers related to previous year's sales 65,000 Amount not received from customers for current years sales 23,000 What is the amount of revenue reported in the income statement? (Remember the related concepts) $308000 $285000 $400,000 $335,000arrow_forward
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