FUND. OF CORPORATE FIN. 18MNTH ACCESS
15th Edition
ISBN: 9781259811913
Author: Ross
Publisher: MCG CUSTOM
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Question
Chapter 3, Problem 16QP
Summary Introduction
To find: The source and uses of cash, with the help of the changes in the balance sheet account of Company JD in 2015
Introduction:
The activity that brings in cash or cash equivalent is called as the sources of cash. The firm gets cash through the investment by the owners, borrowings, converting the other resources into cash, and the management operations. The activity of the firm in which the cash is spent is the uses of cash and it is termed as the application of cash.
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Solve this question with steps please. The subject is financial management.
A. For each account balance sheet, show the change in the account during 2015 and note whether this change was a source or use of cash?
I'm able to do the cash flow, but I am confused about the cash received from customers part of this. I am also confused about the right side of the attached spreadsheet with supporting calculations:
North Company’s income statement and comparative balance sheets as of December 31 of 2019 and 2018 follow:
NORTH COMPANYIncome StatementFor the Year Ended December 31, 2019
Sales Revenue
$770,000
Cost of Goods Sold
$550,000
Wages Expense
195,000
Advertising Expense
31,000
Depreciation Expense
24,000
Interest Expense
20,000
Gain on Sale of Land
(25,000)
795,000
Net Loss
$(25,000)
NORTH COMPANYBalance Sheets
Dec. 31, 2019
Dec. 31, 2018
Assets
Cash
$80,000
$32,000
Accounts Receivable
42,000
49,000
Inventory
107,000
115,000
Prepaid Advertising
10,000
14,000
Plant Assets
360,000
210,000
Accumulated Depreciation
(80,000)
(56,000)
Total Assets
$519,000
$364,000
Liabilities and Stockholders’ Equity
Accounts Payable…
I'm able to do the cash flow, but I am confused about the cash received from customers part of this. I am also confused about the right side of the attached spreadsheet with supporting calculations:
North Company’s income statement and comparative balance sheets as of December 31 of 2019 and 2018 follow:
NORTH COMPANYIncome StatementFor the Year Ended December 31, 2019
Sales Revenue
$770,000
Cost of Goods Sold
$550,000
Wages Expense
195,000
Advertising Expense
31,000
Depreciation Expense
24,000
Interest Expense
20,000
Gain on Sale of Land
(25,000)
795,000
Net Loss
$(25,000)
NORTH COMPANYBalance Sheets
Dec. 31, 2019
Dec. 31, 2018
Assets
Cash
$80,000
$32,000
Accounts Receivable
42,000
49,000
Inventory
107,000
115,000
Prepaid Advertising
10,000
14,000
Plant Assets
360,000
210,000
Accumulated Depreciation
(80,000)
(56,000)
Total Assets
$519,000
$364,000
Liabilities and Stockholders’ Equity
Accounts Payable…
Chapter 3 Solutions
FUND. OF CORPORATE FIN. 18MNTH ACCESS
Ch. 3.1 - Prob. 3.1ACQCh. 3.1 - Prob. 3.1BCQCh. 3.2 - Prob. 3.2ACQCh. 3.2 - Name two types of standardized statements and...Ch. 3.3 - What are the five groups of ratios? Give two or...Ch. 3.3 - Given the total debt ratio, what other two ratios...Ch. 3.3 - Turnover ratios all have one of two figures as the...Ch. 3.3 - Profitability ratios all have the same figure in...Ch. 3.4 - Return on assets, or ROA, can be expressed as the...Ch. 3.4 - Return on equity, or ROE, can be expressed as the...
Ch. 3.5 - Prob. 3.5ACQCh. 3.5 - Prob. 3.5BCQCh. 3.5 - Prob. 3.5CCQCh. 3.5 - Prob. 3.5DCQCh. 3 - Prob. 3.1CTFCh. 3 - Prob. 3.2CTFCh. 3 - What is the correct formula for computing the...Ch. 3 - Prob. 3.5CTFCh. 3 - Current Ratio [LO2] What effect would the...Ch. 3 - Current Ratio and Quick Ratio [LO2] In recent...Ch. 3 - Prob. 3CRCTCh. 3 - Prob. 4CRCTCh. 3 - Prob. 5CRCTCh. 3 - Prob. 6CRCTCh. 3 - Prob. 7CRCTCh. 3 - Prob. 8CRCTCh. 3 - Prob. 9CRCTCh. 3 - Industry-Specific Ratios [LO2] There are many ways...Ch. 3 - Prob. 11CRCTCh. 3 - Prob. 12CRCTCh. 3 - Calculating Liquidity Ratios [LO2] SDJ, Inc., has...Ch. 3 - Calculating Profitability Ratios [LO2] Shelton,...Ch. 3 - Calculating the Average Collection Period [LO2]...Ch. 3 - Calculating Inventory Turnover [LO2] The Green...Ch. 3 - Calculating Leverage Ratios [LO2] Levine, Inc.,...Ch. 3 - Calculating Market Value Ratios [LO2] Makers Corp....Ch. 3 - DuPont Identity [LO4] If Roten Rooters, Inc., has...Ch. 3 - DuPont Identity [LO4] Zombie Corp. has a profit...Ch. 3 - Prob. 9QPCh. 3 - Prob. 10QPCh. 3 - Prob. 11QPCh. 3 - Equity Multiplier and Return on Equity [LO3] SME...Ch. 3 - Just Dew It Corporation reports the following...Ch. 3 - Prob. 14QPCh. 3 - Prob. 15QPCh. 3 - Prob. 16QPCh. 3 - Calculating Financial Ratios [LO2] Based on the...Ch. 3 - Using the DuPont Identity [LO3] Y3K, Inc., has...Ch. 3 - Days Sales in Receivables [LO2] A company has net...Ch. 3 - Ratios and Fixed Assets [LO2] The Caughlin Company...Ch. 3 - Profit Margin [LO4] In response to complaints...Ch. 3 - Return on Equity [LO2] Firm A and Firm B have...Ch. 3 - Calculating the Cash Coverage Ratio [LO2] Ugh...Ch. 3 - Cost of Goods Sold [LO2] W B Corp. has current...Ch. 3 - Prob. 25QPCh. 3 - Some recent financial statements for Smolira Golf...Ch. 3 - DuPont Identity [LO3] Construct the DuPont...Ch. 3 - Prob. 28QPCh. 3 - Market Value Ratios [LO2] Smolira Golf Corp. has...Ch. 3 - Tobins Q [LO2] What is Tobins Q for Smolira Golf?...Ch. 3 - Using the financial statements provided for SS...Ch. 3 - Mark and Todd agree that a ratio analysis can...Ch. 3 - Compare the performance of SS Air to the industry....
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