MANAGERIAL ACCTING LL W/CNCT- UND CUSTOM
17th Edition
ISBN: 9781264343850
Author: Garrison
Publisher: MCG CUSTOM
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Textbook Question
Chapter 15.A, Problem 7P
PROBLEM 14A-7 Prepare and Interpret a Statement of Cash Flows LO14-1, LO14-4
Refer to the financial statement data for Joyner Company in Problem 14-10. Sam Conway, president of the company; considers $15,000 to be the minimum cash balance for operating purposes. As can be seen from the balance sheet data, only $4,000 in cash was available at the end of the current year. The sharp decline is puzzling to Mr. Conway, particularly because sales and profits are at a record high.
Required:
- Using the direct method, adjust the company s income statement to a cash basis for Year 2.
- Using the data from (1) above and other data from the problem as needed, prepare a statement of cash flows for Year 2.
- Explain why cash declined so sharply during the year.
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Problem 13-7 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2]
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[The following information applies to the questions displayed below.]
Comparative financial statements for Weaver Company follow:
Weaver CompanyComparative Balance Sheetat December 31
This Year
Last Year
Assets
Cash
$ 15
$ 11
Accounts receivable
291
228
Inventory
152
195
Prepaid expenses
8
5
Total current assets
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439
Property, plant, and equipment
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(83)
(71)
Net property, plant, and equipment
431
364
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25
32
Total assets
$ 922
$ 835
Liabilities and Stockholders' Equity
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
$ 922
$ 835…
my w
E12-7 Preparlng and Evaluating a Slimple Statement of Cash Flows (Indirect Method) [LO 12-1, LO
12-2, LO 12-5]
Suppose the income statement for Goggle Company reports $131 of net income, after deducting depreciation of $26. The
company bought equipment costing $105 and obtained a long-term bank loan for $106. The company's comparative balance
sheet, at December 31, is presented here.
Requlred:
1. Calculate the change in each balance sheet account and indicate whether each account relates to operating, investing, and.
financing activities (+ for increase and - for decrease).
2. Prepare a statement of cash flows using the indirect method.
6. Are the cash flows typical of a start-up, healthy, or troubled company?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 6
Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus
sign.)
GOGGLE COMPANY
Statement of Cash Flows
For the…
Required information
Problem 13-7 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2]
Skip to question
[The following information applies to the questions displayed below.]
Comparative financial statements for Weaver Company follow:
Weaver CompanyComparative Balance Sheetat December 31
This Year
Last Year
Assets
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
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 15 Solutions
MANAGERIAL ACCTING LL W/CNCT- UND CUSTOM
Ch. 15.A - Prob. 1ECh. 15.A - EXERCISE 14A-2 Net Cash Provided by Operating...Ch. 15.A - Prob. 3ECh. 15.A - Prob. 4ECh. 15.A -
PROBLEM 14A-5 Prepare and Interpret a Statement...Ch. 15.A - Prob. 6PCh. 15.A - PROBLEM 14A-7 Prepare and Interpret a Statement of...Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3Q
Ch. 15 - Prob. 4QCh. 15 - Prob. 5QCh. 15 - Prob. 6QCh. 15 - Prob. 7QCh. 15 - Prob. 8QCh. 15 - Prob. 9QCh. 15 -
14-10 If the Accounts Receivable balance...Ch. 15 - Prob. 11QCh. 15 - Prob. 12QCh. 15 - Prob. 1F15Ch. 15 - Ravenna Company is a merchandiser that uses the...Ch. 15 - Prob. 3F15Ch. 15 - Prob. 4F15Ch. 15 - Prob. 5F15Ch. 15 - Prob. 6F15Ch. 15 - Ravenna Company is a merchandiser that uses the...Ch. 15 - Prob. 8F15Ch. 15 - Prob. 9F15Ch. 15 - Prob. 10F15Ch. 15 - Prob. 11F15Ch. 15 - Prob. 12F15Ch. 15 - Prob. 13F15Ch. 15 - Prob. 14F15Ch. 15 - Prob. 15F15Ch. 15 - Prob. 1ECh. 15 - EXERCISE 14-2 Net Cash Provided by Operating...Ch. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Prob. 5ECh. 15 - Prob. 6ECh. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Prob. 9PCh. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14P
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