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. 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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FUNDAMENTAL ACCT.PRIN.-CONNECT ACCESS
- Cashbalance,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_forwardEX. 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_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
- Chapter 16 Statement of Cash Flows 807 Problems: Series A PR 16-1A Statement of cash flows OBJ. 2, 3, 4, S Net cash flows from The comparative balance sbeet of lelesias Inc. for December 31, 20Y3 and 20Y, 15 shown eperating activities, $588,000 as follows: Dec. 31,20Y3 Dec. 31,20Y2 Assets SHOW ME HOW Cash... $ 186,000 $ 180,000 Accounts receivable (net). 540,000 480,000 Inventories... 924,000 900,000 Investments.... 120,000 Land.... 600,000 Equipment....... Accumulated depreciation-equipment......**** *. Total assets.... 1,680,000 1,440,000 (720,000) $3,210,000 (600,000) $2,520,000 Llabilities and Stockholders' Equity Accounts payable... 5 408,000 5 360,000 54,000 60,000 Accrued expenses payable...... Dividends payable...... Common stock, $4 par.... 36,000 30,000 840,000 720,000 240,000 210,000 Paid-in capital in excess of par.... 1,632,000 1,140,000 Retained earnings...... $3,210,000 $2.520,000 Total liabilities and stockholders' equity..... Additional data obtained from an…arrow_forwardWeek 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 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