FUND. OF CORPORATE FIN. 18MNTH ACCESS
15th Edition
ISBN: 9781259811913
Author: Ross
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 9QP
Summary Introduction
To find: The increase or decrease in cash of Company D and categorize the given events as a use or source of cash.
Introduction:
The activity that brings in cash or cash equivalent is called as the sources of cash. The activity of the firm that involves spending of cash is the uses or application of cash.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
2)Calculate the net impact on cash given the following information: decrease in accounts receivable= $30; decrease in inventory= $45; net fixed asset Disposals= $75; decrease in accounts payable= $27; increase in notes payable= $30; increase in long-term debt= $105; decrease in retained earnings= $18; decrease in common stock= $600.
You are given the following information for Ortiz Corporation:
Decrease in inventory
$ 610
Decrease in accounts payable
255
Increase in notes payable
240
Increase in accounts receivable
270
1. Did cash go up or down and by how much?
2. Classifyy each event as a source of cash.
73.
Which of the following situation will decrease both receipts and disbursement in the book proof of cash?I. Collection of customers account was recorded higher by P10,000 and corrected in the same period.II. Disbursements of check payment to supplier was recorded higher by P5,000 and corrected in the same period.III. Disbursements of check payment to supplier was recorded lower by P5,000 and corrected in the same period.
Group of answer choices
III only
Both I and III
Both I and II
II only
Both II and III
I only
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....
Knowledge Booster
Similar questions
- 47. Which of the following item do not affect the Cash account? a. Purchases of P10,000 b. Sales of P5,000 c. Received cash for service rendered P2,000 d. Credit sales of P22,000arrow_forwardWhat is the adjusted cash in bank on December 31? 8,200,000 9,050,000 8,970,000 9,150,000 What is the cash in bank per ledger on December 31? 8,990,000 8,270,000 8,560,000 8,660,000 for fc479f51-46ab-41af-b134-12bc9f4c0777.png How much from the list above should be presented as part of noncurrent assets 4,000,000 1,000,000 4,900,000 5,500,000arrow_forwardP9. The following information is available for Delta Company as of April 30, 2014 GENERAL LEDGER ADJUSTED BOOK BALANCE APRIL 30: $149,473.28 Cash on books as of April 30 amounted to $114,175.28. Cash on the Bank statement for the same date was $141,717.08. A deposit of $14,249, representing cash receipts of April 30, did not appear on the bank statement. Outstanding checks totaled $7,293.64. A check for $2,420.00 returned with the statement was recorded as $2,024.00. The check was for advertising. The bank service charge for April amounted to $26.00 The bank collected $36,400.00 for Delta Company on a note. The face value of the note was $36,000.00. An NSF check for $1,140.00 from a customer, Hasan Ali, was returned with the statement. The bank mistakenly deducted a check for $800.00 that was drawn by Alpha Corporation The bank reported a credit of $460.00 for interest on the average balance. REQUIRED Prepare a bank reconciliation for Delta as of April 30, 2014 Prepare the necessary…arrow_forward
- You are given the following information for Ortiz Corporation: Decrease in inventory $ 610 Decrease in accounts payable 255 Increase in notes payable 240 Increase in accounts receivable 270 Did cash go up or down? By how much?arrow_forward1. What is the adjusted cash balance as of February 28, 2022? A. 156,950 B. 157,950 C. 82,800 D. None of the options 2. What is the adjusted cash amount of cash receipts during February? A. 779,650 B. 780,650 C. 761,650 D. 760,650 3. What is the adjusted amount of disbursements per bank during February? A.624,700 B. 625,700 C. 606,700 D. 605,700 4. What is the adjusted cash balance as of January 31, 2022? A. 2,000 B. 3,000 C. 13,500 D. None of the options 5. What is the unadjusted amount of cash receipts per bank during February A. 790,450 B. 768,850 C. 779,650 D. None of the options 6. What is the unadjusted amount of cash disbursements per book during February? A. 630,300 B. 647,700 C. 624,700 D. None of the optionsarrow_forward10) DEF Company has the following data relating to accounts receivable for the year ended December 31, 2022: Accounts receivable, January 1, 2022 P 480,000 Allowance for doubtful accounts, 1/1/22 28,600 Cash sales 300,000 Sales on account, terms: 2/10, 1/15, n/30 2,560,000 Cash received from customers during the year 2,400,000 Accounts written off during the year 17,600 Cash refunds given to cash customers for sales returns and allowances 15,000 Credit memoranda issued to credit customers for sales returns and allowances 25,000 The P2,400,000 collection is composed of the following: Collection from customers availing the 10-day discount period: Gross selling price P 1,440,000 Discount taken (1,440,000 x 2%) (28,000) P 1,411,200 Collection from customers availing the 15-day discount period: Gross selling price 800,000 Discount taken (800,000 x 1%) ( 8,000) 792,000 Collection from customers paying beyond the discount period: 192,000 Collection of accounts previously written…arrow_forward
- Could you please explain to me how the cash balances are calculated???? Pro Forma Cash Flow Cash Received Cash from Operations Cash Sales $24,198 $100,099 $122,460 Cash from Receivables $46,108 $217,218 $342,905 Subtotal Cash from Operations $70,306 $317,317 $465,366 Additional Cash Received Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $40,000 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $70,306 $357,317 $465,366 Expenditures Year 1 Year 2 Year 3 Expenditures from Operations Cash Spending $167,000 $225,200 $229,200 Bill Payments $75,294 $124,114 $152,785 Subtotal Spent on Operations $242,294 $349,314 $381,985 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0…arrow_forward7. How much is the cash shortage or overage as of December 31, 2021? Indicate whether shortage or overage. A. no shortage B. shortage of P500 C. overage of P500 D. shoratge of P4,500 8. How much petty cash fund shall be shown as part of the Cash balance as of December 31, 2021? * A. 35,000.00 B. 45,000.00 C. 53,500.00 D. 38,500.00arrow_forward1. A company has P2,320,000 cash balance per bank statement, P456,000 deposit in transit, P320,000 NSF check and P278,000 outstanding check. What is the adjusted cash balance? A. P2,142,000 B. P2,178,000 C. P2,456,000 D. P2,498,000arrow_forward
- MCQS 1 AS Inc. made a €40,000 sale on account with the following terms: 2/15, n/30. If the company uses the net method to record sales made on credit, how much should be recorded as sales revenue?a. € 38,400b. € 40,800c. €40,000d. €39,200MCQ 2Which of the following is not considered cash for financial reporting purposes?a. Petty cash funds and change fundsb. Dividends receivablec. Coin, currency, and available fundsd. Money orders, certified checks, and personal checksMCQ 3Travel advances should be reported asa. supplies.b. cash because they represent the equivalent of money.c. investments.d. None of these answer choices are correct. no need of explanationarrow_forwardGreen Company uses the Baumol model tomanage its disbursement account. Monthlycash disbursement is P1,200,000. Cash in thisaccount could have earned 5% on moneymarketable securities. Green incurs P576every time cash is transferred to this account.The optimum cash balance is A. 576,000.00B. 166,276.88C. 124,707.66D. 432,000.00arrow_forwardE7.16 (LO 2, 3, 5) (Journalizing Various Receivable Transactions) The trial balance before adjustment for Phil Collins Company shows the following balances. Dr. Cr. Accounts Receivable $82,000 Allowance for Doubtful Accounts 2,120 Sales Revenue $430,000 Instructions Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.) 1. To obtain additional cash, Collins factors without recourse $25,000 of accounts receivable with Stills Finance. The finance charge is 10% of the amount factored. 2. To obtain a 1-year loan of $55,000, Collins pledges $65,000 of specific receivable accounts to Crosby Financial. The finance charge is 8% of the loan; the cash is received and the accounts turned over to Crosby Financial. 3. The company wants to maintain the Allowance for Doubtful Accounts at 5% of gross accounts receivable. 4. Based on an aging analysis, an allowance of $5,800 should be…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
- Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningCorporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education