BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

Solutions

Chapter
Section
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
1 views

(Appendix 21.1) Statement of Cash Flows The following is a list of items to be included in Estes Company’s 2019 statement of cash flows:

  1. a. payments to suppliers, $31,500
  2. b. other operating receipts, $1,200
  3. c. payments of dividends, $4,000
  4. d. payments of income taxes, $5,000
  5. e. collections from customers, $68,400
  6. f. payment for purchase of equipment, $18,500
  7. g. payments to employees, $19,300
  8. h. interest and dividends collected, $7,100
  9. i. other operating payments, $900
  10. j. proceeds from issuance of bonds, $11,300
  11. k. payments of interest, $8,400
  12. l. proceeds from sale of investments, $6,000
  13. m. beginning cash balance, $28,400

Required:

  1. 1. Prepare the statement of cash flows using the direct method for operating cash flows.
  2. 2. Next Level Under IFRS, which items may be classified differently than under U.S. GAAP?

1.

To determine

Prepare the statement of cash flows under direct method of E Company for the year 2019.

Explanation

Statement of cash flows: Statement of cash flow reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Direct method: Under direct method, cash receipts from customers (cash inflows) and cash payments to suppliers (cash outflows) are reported under the operating activities.

Prepare the statement of cash flows under direct method of E Company for the year 2019.

E Company
Statement of cash flows for the year, 2019
ParticularsAmount($)Amount($)
Operating Activities:  
Cash inflows: 
Collection from customers68,400 
Interest and dividends collected7,100 
Other operating receipts1,200 
Cash inflows from operating activities 76,700
Cash outflows: 

2.

To determine

Determine the items that are classified differently under IFRS and GAAP.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

In what ways is economics a science?

Principles of Microeconomics (MindTap Course List)

PRESENT AND FUTURE VALUES Of A CASH FLOW STREAM An investment will pay 100 at the end of each of the next 3 sta...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)