a.
To identify: The given statement is source or use of cash, and also explains the effect on firms cash balance.
Source of cash:
The company needs funds to fulfill the present as well as the future financial needs of the company. The company needs cash to satisfy these financial needs. All the options available to company for procurement of funds are considered as the sources of cash.
Uses of cash:
All the payments made by a company to outsiders are the use of cash. In business cycle one pay to another and this cycle continue till the business ends. The use of cash will reduce the cash balance of the company.
b.
To identify: The given statement is source or use of cash, and also explains the effect on firms cash balance.
Source of cash:
The company needs funds to fulfill the present as well as the future financial needs of the company. The company needs cash to satisfy these financial needs. All the options available to company for procurement of funds are considered as the sources of cash.
Uses of cash:
All the payments made by a company to outsiders are the use of cash. In business cycle one pay to another and this cycle continue till the business ends. The use of cash will reduce the cash balance of the company.
c.
To identify: The given statement is source or use of cash, and also explains the effect on firms cash balance.
Source of cash:
The company needs funds to fulfill the present as well as the future financial needs of the company. The company needs cash to satisfy these financial needs. All the options available to company for procurement of funds are considered as the sources of cash.
Uses of cash:
All the payments made by a company to outsiders are the use of cash. In business cycle one pay to another and this cycle continue till the business ends. The use of cash will reduce the cash balance of the company.
d.
To identify: The given statement is source or use of cash, and also explains the effect on firms cash balance.
Source of cash:
The company needs funds to fulfill the present as well as the future financial needs of the company. The company needs cash to satisfy these financial needs. All the options available to company for procurement of funds are considered as the sources of cash.
Uses of cash:
All the payments made by a company to outsiders are the use of cash. In business cycle one pay to another and this cycle continue till the business ends. The use of cash will reduce the cash balance of the company.
e.
To identify: The given statement is source or use of cash, and also explains the effect on firms cash balance.
Source of cash:
The company needs funds to fulfill the present as well as the future financial needs of the company. The company needs cash to satisfy these financial needs. All the options available to company for procurement of funds are considered as the sources of cash.
Uses of cash:
All the payments made by a company to outsiders are the use of cash. In business cycle one pay to another and this cycle continue till the business ends. The use of cash will reduce the cash balance of the company.
Want to see the full answer?
Check out a sample textbook solutionChapter 26 Solutions
Loose Leaf for Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
- Statement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income, 68,000 b. Increase in accounts receivable, 4,400 c. Receipt from sale of common stock, 12,300 d. Depreciation expense, 11,300 e. Dividends paid, 24,500 f. Payment for purchase of building, 65,000 g. Bond discount amortization, 2,700 h. Receipt from sale of long-term investments at cost, 10,600 i. Payment for purchase of equipment, 8,000 j. Receipt from sale of preferred stock, 20,000 k. Increase in income taxes payable, 3,500 l. Payment for purchase of land, 9,700 m. Decrease in accounts payable, 2,900 n. Increase in inventories, 10,300 o. Beginning cash balance, 18,000 Required: Prepare Mueller Company's statement of cash flows.arrow_forwardSolpoder Corporation has the following comparative financial statements: Dividends of 17,100 were paid. No equipment was purchased or retired during the current year. Required: Prepare a statement of cash flows using the direct method.arrow_forward
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning