Chapter 3, Problem 4DQ

A) Stryker paid $300 million to repurchase its common stock in fiscal 2018 and, in addition, paid dividends of $703 million. Thus, it paid $1.003 million of cash to its stockholders during the year. How do we evaluate that use of cash relative to other possible uses for the company's cash? B) Provide an overall assessment of the company's cash flows for fiscal 2018. In the analysis, consider the sources and uses of cash.

Newman Consulting Company maintains its records on a cash basis. During 2021 the following cash flows were recorded: cash received for services rendered to clients, $420,000; and cash paid for salaries, utilities, and advertising, $240,000, $35,000, and $12,000, respectively. You also determine that customers owed the company $52,000 and $60,000 at the beginning and end of the year, respectively, and that the company owed the utility company $6,000 and $4,000 at the beginning and end of the year, respectively. Determine accrual net income for the year.

During 2018, ABC had the following cash flows: received cash of $5,000 billed to a customer in 2017; earned $20,000 of net income; paid interest of $6,000 on a corporate bond issued; paid dividends of $8,000 to its stockholders; borrowed $40,000 from a local bank; purchased its own shares of common stock for $10,000. What is ABC's net cash flows from financing activities for 2018?

Below are several transactions for Meyers Corporation for 2021.Required: 1. For each transaction, determine the amount of cash flows (indicate inflows with a “+” and outflows with a “−”). If cash is involved in the transaction, indicate whether Meyers should classify it as operating, investing, or financing in a statement of cash flows. Enter N/A if the question is not applicable to the statement. 2. Calculate net cash flows for the year. 3. Assuming the balance of cash on January 1, 2021, equals $5,400, calculate the balance of cash on December 31, 2021.

Your friend is in business and wants your advice on preparing and interpreting the statement of cash flows for 2016. Information regarding the business is as follows: Cash received from customers $ 175,000 Cash paid to vendors 75,000 Cash paid to employees 140,000 Cash paid for interest 35,000 Depreciation expense 40,000 Cash paid in acquiring equipment 375,000 Cash received from issuing bonds 250,000 Cash received from issued common stock 400,000 Beginning cash balance 95,000 ​ Required: a. Based upon the above information, prepare the statement of cash flows using the direct method. b. Explain what has happened during the year.

The following information in the table is available from Sand Corp’s accounting records for the year ended December 31, 2018. Net cash flow provided by operations for 2018 was: Cash received from customers $ 870,000 Rent received $ 10,000 Cash paid to suppliers and employers $ 510,000 Taxes Paid $ 110,000 Cash dividend paid $ 30,000 a. $220,000 b. $230,000 c. $350,000 d. $260,000

The cash account balance of FDNACCT came from the following: From clients for service rendered, P361,000, From clients for services to be rendered, P23,000 From a bank loan, P102,000, and From additional investment of the owner, P174,000.    How much is the income of the business?

Below are the financial data of Tulong Namin Company, a not-for-profit entity for month of June, 2017.Cash – P4,300,500Accounts Receivable – P250,500Long-Term Investment – P1,000,000Plant, Property and Equipment – P4,500,500Accounts Payable – P500,000Notes Payable – P1,500,000Transactions for the month of July, 2017 Receive a car worth – P600,000 but treated as temporary restricted net assets Partial payment of accounts payable – P250,000 Issued a promissory notes worth – P500,000 Paid the salary of employees – P25,250     5. Paid the repair of computer – P6,500Compute balance of total assets as of July, 2017 a. 10,869,740 b. 10,769,745 c. 10,869,750 d. 10,869,755   Compute the balance of unrestricted net assets as of July, 2017, if unrestricted net assets is 70% of total net as a. 5,604,300 b. 5,604,250 c. 5,604,350 d. 5,604,200   Compute the balance of total net assets as of July, 2017 a. 8,619,755 b. 8,619,750 c. 8,619,745 d.…

Newman Consulting Company maintains its records on a cash basis. During 2016 the following cash flows were recorded: cash received from customers, $420,000; and cash paid for salaries, utilities, and advertising, $240,000, $35,000, and $12,000, respectively. You also determine that customers owed the company $52,000 and $60,000 at the beginning and end of the year, respectively, and that the company owed the utility company $6,000 and $4,000 at the beginning and end of the year, respectively. Determine accrual net income for the year.