GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
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Chapter 3, Problem 3.5P
To determine
Identify the operating, financing and investing activities and the direction of increase or decrease in the amount.
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Please help me prepare the statement kf cash flow using the direct method. Thank you
Required
Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for in
activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank.
every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.)
3.
Using the following answer keys, you are to identify in which activity each of the transactions is classified and its effect on cash flows.
Cash Flow Classification...using the capital letter only:
O...Operating Activity
I...Investing Activity
F...Financing Activity
OI...Operating and Investing Activity
N...Noncash Transaction
Effect on Cash Flows...using the capital letter only:
I...Increase
D...Decrease
N...No Effect
Transaction
Cash Flow Classification
Effect on Cash Flows
Declared and paid a cash dividend.
Sold short-term trading securities at a gain.
Retired fully depreciated equipment.
Sold a machine at a loss.
Purchased long-term available-for-sale securities.
Decreased accounts receivable.
Purchased 90-day Treasury bill.
Incurred a net loss.
Declared and issued a stock dividend.
Sold treasury stock.
Chapter 3 Solutions
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Write the income statement equation and define...Ch. 3 - Explain the difference between a. Revenues and...Ch. 3 - Define accrual accounting and contrast it with...Ch. 3 - Prob. 6QCh. 3 - Explain the expense recognition principle.Ch. 3 - Explain why stockholders equity is increased by...Ch. 3 - Explain why revenues are recorded as credits and...Ch. 3 - Complete the following matrix by entering either...
Ch. 3 - Complete the following matrix by entering either...Ch. 3 - Prob. 12QCh. 3 - State the equation for the net profit margin ratio...Ch. 3 - Which of the following is not a specific account...Ch. 3 - Which of the following is not one of the criteria...Ch. 3 - The expense recognition principle controls a....Ch. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Prob. 7MCQCh. 3 - Prob. 8MCQCh. 3 - Prob. 9MCQCh. 3 - Prob. 10MCQCh. 3 - Prob. 3.1MECh. 3 - Reporting Cash Basis versus Accrual Basis Income...Ch. 3 - Identifying Revenues The following transactions...Ch. 3 - Identifying Expenses The following transactions...Ch. 3 - Prob. 3.5MECh. 3 - Prob. 3.6MECh. 3 - Determining the Financial Statement Effects of...Ch. 3 - Prob. 3.8MECh. 3 - Prob. 3.9MECh. 3 - Identifying the Operating Activities in a...Ch. 3 - Prob. 3.11MECh. 3 - Prob. 3.1ECh. 3 - Reporting Cash Basis versus Accrual Basis Income...Ch. 3 - Identifying Revenues Revenues are normally...Ch. 3 - Identifying Expenses Revenues are normally...Ch. 3 - Prob. 3.5ECh. 3 - Determining Financial Statement Effects of Various...Ch. 3 - Recording Journal Entries Sysco, formed in 1969,...Ch. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Analyzing the Effects of Transactions in...Ch. 3 - Preparing an Income Statement Refer to E3-10....Ch. 3 - Prob. 3.12ECh. 3 - Analyzing the Effects of Transactions in...Ch. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19ECh. 3 - Prob. 3.20ECh. 3 - Prob. 3.1PCh. 3 - Recording Journal Entries (AP3-2) Ryan Terlecki...Ch. 3 - Prob. 3.3PCh. 3 - Prob. 3.4PCh. 3 - Prob. 3.5PCh. 3 - Prob. 3.6PCh. 3 - Prob. 3.7PCh. 3 - Recording Nonquantitative Journal Entries (P3-1)...Ch. 3 - Prob. 3.2APCh. 3 - Prob. 3.3APCh. 3 - Prob. 3.4APCh. 3 - Prob. 3.5APCh. 3 - Prob. 3.6APCh. 3 - Accounting for Operating Activities in a New...Ch. 3 - Finding Financial Information Refer to the...Ch. 3 - Finding Financial Information Refer to the...Ch. 3 - Comparing Companies within an Industry Refer to...Ch. 3 - Analyzing a Company over Time Refer to the annual...Ch. 3 - Prob. 3.6CPCh. 3 - Evaluating an Ethical Dilemma Mike Lynch is the...
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Similar questions
- For each independent situation below, place an (X) by the transactions that would be included in the statement of cash flows. Table 2.3arrow_forwardPrepare a Cash Flow Statement with imaginary figures as per AS-3.arrow_forward2. Using the following answer keys, you are to identify in which activity each of the transactions is classified and its effect on cash flows. Cash Flow Classification...using the capital letter only: O...Operating Activity I...Investing Activity F...Financing Activity OI...Operating and Investing Activity N...Noncash Transaction Effect on Cash Flows...using the capital letter only: I...Increase D...Decrease N...No Effect Transaction Cash Flow Classification Effect on Cash Flows Increased accounts payable. Decreased inventory. Increased prepaid insurance. Earned a net income. Issued stock for cash. Retired long-term debt by issuing stock. Purchased a long-term investment with cash. Decreased interest payable. Decreased dividends receivable. Converted bonds to common stock.arrow_forward
- Cash Flow Statement is related to a. AS-1 b. AS-6 c. AS-3 d. AS-12arrow_forward5. Using the following answer keys, you are to identify in which activity each of the transactions is classified and its effect on cash flows. Cash Flow Classification...using the capital letter only: O...Operating Activity I...Investing Activity F...Financing Activity OI...Operating and Investing Activity N...Noncash Transaction Effect on Cash Flows...using the capital letter only: I...Increase D...Decrease N...No Effect Transaction Cash Flow Classification Effect on Cash Flows Paid a cash dividend. Decreased accounts receivable. Increased inventory. Retired long-term debt with cash. Sold long-term securities at a loss. Issued stock for equipment. Decreased prepaid insurance. Purchased treasury stock with cash. Retired a fully depreciated truck (no gain or loss). Transferred cash to money market account.arrow_forwardWhich one of the following shows the sections of a cash flow statement correctly?Select one:a. Operating, Investing, Financingb. Investing, Financing, Leasingc. Operating, Financing, IFRS Reportingd. Operating, Investing, Factoringarrow_forward
- I need help with just question d (1-3) at the bottom of the picture. Operating cash flow to current liabilities ratioarrow_forwarda. explain the information found on the statement of cash flow. b. how do the direct and indirect methods of preparing the statement of cash flow different?arrow_forwardhow to create the statement of cash flow from the given? show the solution.arrow_forward
- pls tabulate the cashflow, tqarrow_forwardb. Record each event in a statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.) REDD COMPANY Horizontal Statements Model - 2018 Balance Sheet Income Statement Statement of Cash Flows Event Assets = Liabilities + Stockholders' Equity Retained Revenue - Earnings Net Income Expenses Accounts Receivable Merchandise Accounts Common Stock Cash Inventory Payable Bal. 7,700 + 1,700 7,200 + 2,200 1a 5,200 = 5,200 + + 1b. (470) 470 OA + + 2. (400)=| + 3. (4,704) + (96) = 96 OA + + + 4а. 8,700 + 8,700 + 4b. (5,700) 5,700 = (5,700) 5а. (770) + (770) OA + 5b. 470 (470)|= 470 + + (570) + 570 = (570) OA (174) OA 6. + + = 7. 8,526 + (8,700) + + +…arrow_forwardb. Record each event in a statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.) Event Bal. 1a. 1b. 2. 3. 4a. 4b. 5a. 5b. 6. 7. 8. Bal. Cash Assets Accounts + Receivable 8,100+ + (510)+ + + + + (810) + + + + + $ 6,780 + + + + + + 9,100+ + + + + + Balance Sheet Merchandise Inventory = Liabilities + Stockholders' Equity Accounts Common Payable Stock Retained Earnings 2,600 = 2,100 = 5,600 = 510= 300 = 6,100 = = REDD COMPANY Horizontal Statements Model - Year 2 $ 9,100+ $ 14,610 = $ + + + + + + 0+ + 7,600 + + + + + + + + + $7,600 + Revenue $ 2,600 $ Income Statement Expenses = 0-$ = = 0= $ Net Income 0 $ Statement of Cash Flows 0arrow_forward
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