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Exercise 16-16BDirect: Computing cash flows P5
For each of the following separate cases, compute the required cash flow information.
Case X: Compute cash received from customers
Sales................................ $515,000
Accounts receivable, Beginning balance____ 27.200
Accounts receivable. Ending balance..... 33,500
Case Y: Compute cash paid for rent
Rent expense......................... $139.3.00
Rent payable. Beginning balance......... 7.S00
Rent payable. Ending balance........... £.200
Case Z: Compute cash paid for inventory
Cost of goods sold.................. $525,000
Inventory, Beginning balance......... 15B.&00
Accounts payable, Beginning balance ... 56,700
Inventory, Ending balance............ 130,400
Accounts payable, Ending balance..... 32,000
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Chapter 16 Solutions
Fundamental Accounting Principles
- EX. 16-2 Effect of Trasactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a.Retired $400,000 of bonds, on which there was $3,000 of unamortized discount, for $411,000.arrow_forwardCashbalance,beginning.....................P9 P ? P ? P? P?Add collectionsfromcustomers..... ? ? 125 ? 391Totalcash available................... 85 ? ? ? ?Less disbursements:Purchaseofinventory..................... 40 58 ? 32 ?Operatingexpenses............... ? 42 54 ? 180Equipmentpurchases................... 10 8 8 ? 36Dividends.......................... 2 2 2 2 ?Totaldisbursement.................... ? 110 ? ? ?Excess (deficiency) of cash availableOrdisbursements... ...................... (3) ? 30 ? ? Financing:Borrowings......................... ? 20 - - ?Repayments (including interest)*.. - - (?) (7) (?)Total financing......................... ? ? (?) (?) ?Cash balance, ending................... P ? P ? P ? P ? P ? *Interest will total P4, 000 for the year.arrow_forward5 Required information Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Investment securities Machinery Land Year 2 $ 103,400 521,300 145, 100 Year 1 $ 114,400 425, 100 91,800 Other information drawn from the accounting records: 1. Delsey incurred a $1,330 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,130 (cost of $25,010 minus accumulated depreciation of $20,880) was sold. The income statement showed a gain on the sale of machinery of $4,980, 3. Delsey did not sell land during the year.arrow_forward
- Week 14 Discussion: Comparing the Primary Sources and Uses of Cash A+ The statement of Cash Flows is divided into three major sections: Operating, Investing, and Financing. Of the three, which do you think is most important and why? Respond to at least two of your peers and identify a time or situation in which one of the other sections may prove to be more important or beneficial. Initial posts due on Thursday b 11.50 FCTarrow_forwardExercise 12-5A (Algo) Use the direct method to determine cash flows from operating activities LO 12-2 The following accounts and corresponding balances were drawn from Marinelli Company's Year 2 and Year 1 year-end balance sheets. Year 2 Year 1 $48,200 $39,600 Account Title Accounts receivable Interest receivable Other operating expenses payable Salaries payable The Year 2 income statement is shown next. Income Statement Sales Salary expense. Other operating expenses Operating income Nonoperating items: Interest revenue Net income 4,800 29,900 11,850 a. Cash inflows from operating activities b. Cash outflows from operating activities 6,850 20,900 16,150 $760,000. (169,500) (268,500) 322,000 23,500 $345,500 Required a. Use the direct method to compute the amount of cash inflows from operating activities. b. Use the direct method to compute the amount of cash outflows from operating activities.arrow_forwardExercise 16-21B (Algo) Direct: Preparing statement of cash flows and supporting note LO P5 Cash and cash equivalents, December 31 prior year-end Cash and cash equivalents, December 31 current year-end Cash received as interest Cash paid for salaries Bonds payable retired by Issuing common stock (no gain or loss on retirement) Cash paid to retire long-term notes payable Cash received from sale of equipment Land purchased by issuing long-term notes payable Cash paid for store equipment Cash dividends paid Cash paid for other expenses Cash received from customers Cash paid for inventory $ 10,000 28,120 1,000 29,000 115,000 50,000 24, 500 66, 700 9,500 6,000 16,000 194,000 100,880 Use the above information about Ferron Company to prepare a complete statement of cash flows (direct method) for the current year ended December 31. Use a note disclosure for any noncash investing and financing activities. (Amounts to be deducted should be indicated with o minus sign.) FERRON COMPANY Statement of…arrow_forward
- Accounting (Text Only)AccountingISBN:9781285743615Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
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