INTERMEDIATE ACCT.-MYLAB COMBO ACCESS
3rd Edition
ISBN: 9780137391707
Author: GORDON
Publisher: PEARSON
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Question
Chapter 22, Problem 22.2E
To determine
Cash flow from operating activities of HAP under indirect method as per IFRS format.
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Required information
[The following information applies to the questions displayed below.]
The following information pertains to the inventory of Parvin Company during Year 2.
January 1
April 1
700 units @ $31
2,600 units @ $36
900 units @ $39
October 1
Beginning Inventory
Purchased
Purchased
During Year 2, Parvin sold 3,900 units of inventory at $85 per unit and incurred $44,500 of operating expenses.
Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions.
Assume a 40 percent income tax rate. Parvin started the period with cash of $81,000, inventory of $21,700, common
stock of $56,000, and retained earnings of $46,700.
d. Determine the cash flow from operating activities under FIFO and LIFO. (Amounts to be deducted should be indicated with minus
sign.)
Prepare Morganson's statement of cash flows using the indirect method. Include an
accompanying schedule of non-cash investing and financing activities.
P16-34A Preparing the statement of cash flows-indire ct method with
The 2018 income statement and comparative balance shect of Rolling Hills, Inc.
non-cash transactions
follow
ROLLING HILLS, INC.
Income Statement
Year Ended December 31, 2018
Net Sales Revenue
$ 440,000
Cost of Goods Sold
209,200
Gross Profit
230,800
Operating Expenses:
Salaries Expense
$ 77,400
Depreciation Expense-Plant Assets
14,400
Other Operating Expenses
10,200
Total Operating Expenses
102,000
Operating Income
128,800
Other Income and (Expenses):
Interest Revenue
8,700
Interest Expense
(21,100)
Total Other Income and (Expenses)
(12,400)
Net Income Before Income Taxes
116,400
Income Tax Expense
20,000
$ 96,400
Net Income
The following are excerpts from Hamburg Company’s statement of cash flows and other financial records.
From Statement of Cash Flows:
Cash flows from operating activities
$220,309
Cash flows from investing activities
-32,336
Cash flows from financing activities
-23,618
From other records:
Capital expenditure costs
12,310
Cash dividend payments
11,146
Sales revenue
559,818
Total assets
337,149
Compute cash flows to sales ratio
Chapter 22 Solutions
INTERMEDIATE ACCT.-MYLAB COMBO ACCESS
Ch. 22 - Prob. 22.1QCh. 22 - Prob. 22.2QCh. 22 - Prob. 22.3QCh. 22 - Prob. 22.4QCh. 22 - Prob. 22.5QCh. 22 - How do firms reclassify gains and losses on the...Ch. 22 - Prob. 22.7QCh. 22 - Prob. 22.8QCh. 22 - Prob. 22.9QCh. 22 - Prob. 22.10Q
Ch. 22 - Prob. 22.11QCh. 22 - What approach is used in preparing the operating...Ch. 22 - Under the indirect method, do firms subtract bond...Ch. 22 - Do firms subtract pension expense from net income...Ch. 22 - Prob. 22.15QCh. 22 - Prob. 22.16QCh. 22 - Prob. 22.1MCCh. 22 - Prob. 22.2MCCh. 22 - Big Dollars Corporation's comparative financial...Ch. 22 - Prob. 22.4MCCh. 22 - Prob. 22.5MCCh. 22 - Sykes Corporation's comparative balance sheets at...Ch. 22 - Prob. 22.7MCCh. 22 - Prob. 22.8MCCh. 22 - Prob. 22.1BECh. 22 - Prob. 22.2BECh. 22 - Prob. 22.3BECh. 22 - Prob. 22.4BECh. 22 - Prob. 22.5BECh. 22 - Prob. 22.6BECh. 22 - Prob. 22.7BECh. 22 - Operating Activities Section, Indirect Method,...Ch. 22 - Prob. 22.9BECh. 22 - Prob. 22.10BECh. 22 - Prob. 22.11BECh. 22 - Prob. 22.12BECh. 22 - Prob. 22.13BECh. 22 - Operating Activities Section, Indirect Method,...Ch. 22 - Prob. 22.15BECh. 22 - Prob. 22.16BECh. 22 - Prob. 22.17BECh. 22 - Prob. 22.18BECh. 22 - Prob. 22.19BECh. 22 - Prob. 22.20BECh. 22 - Prob. 22.21BECh. 22 - Prob. 22.22BECh. 22 - Complex Transactions, Acquisitions and...Ch. 22 - Prob. 22.24BECh. 22 - Prob. 22.25BECh. 22 - Complex Transactions, Change in Accounts...Ch. 22 - Prob. 22.27BECh. 22 - Prob. 22.28BECh. 22 - Prob. 22.1ECh. 22 - Prob. 22.2ECh. 22 - Prob. 22.3ECh. 22 - Prob. 22.4ECh. 22 - Prob. 22.5ECh. 22 - Prob. 22.6ECh. 22 - Prob. 22.7ECh. 22 - Prob. 22.8ECh. 22 - Prob. 22.9ECh. 22 - Prob. 22.10ECh. 22 - Statement of Cash Flows, Indirect Method....Ch. 22 - Prob. 22.12ECh. 22 - Prob. 22.13ECh. 22 - Prob. 22.14ECh. 22 - Prob. 22.15ECh. 22 - Prob. 22.16ECh. 22 - Prepare Statement of Cash Flows, Direct Method....Ch. 22 - Prob. 22.2PCh. 22 - Prob. 22.3PCh. 22 - Prob. 22.4PCh. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Prob. 22.11PCh. 22 - Prob. 22.12PCh. 22 - Prob. 22.13PCh. 22 - Statement of Cash Flows, Direct Method, Complex...Ch. 22 - Prob. 1JCCh. 22 - Prob. 1FSCCh. 22 - Prob. 1SSCCh. 22 - Surfing the Standards Case 2: Cash Flow per Share...Ch. 22 - Basis for Conclusions Cases Basis for Conclusions...Ch. 22 - Basis for Conclusions Case 2: Indirect versus...
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