Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 4.18E
To determine
Statement of Cash Flows:
Statement of cash flow is a financial statement reporting the inflow and outflow of cash and cash equivalents for a particular period.
Cash flow from operating activities:
Cash flow from operating activities is a part of cash flow statement which shows the inflow and outflow of cash in its regular business activities such as manufacturing and selling goods and providing services.
To determine: The cash flow from operating activities of Corporation C.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
PB12. LO 16.5 The following shows excerpts from financial infomation relating to Stanwell Company and Thodes Company.
Stanwell
Thodes
Net cash flows operating activities
138,000
115,000
total assets
272,000
35,0000
net income
35,000
32,000
sales revenue
385,000
250,000
capital expenditures
28,000
60,000
dividend payments
17,000
13,000
compute the following for both companies. compare your results.
A. free cash flow
B. Cash flows to sales ratio
C. Cash flows to assets ratio
Klp.6
Using the data in the table, calculate the operating cash flow for Cyberdyne. Round your answer to the nearest dollar (no decimals). Cyberdyne Systems Selected Financial Information Net Income $1,215 Depreciation 400 Interest 550 Tax Rate 0.30 Operating cash flow = $
Problem 11-4A Prepare a statement of cash flows—indirect method (LO11-2, 11-3, 11-4, 11-5)
The income statement, balance sheets, and additional information for Video Phones, Inc., are provided.
VIDEO PHONES, INC.
Income Statement
For the Year Ended December 31, 2021
Net sales
$
2,636,000
Expenses:
Cost of goods sold
$
1,600,000
Operating expenses
788,000
Depreciation expense
20,000
Loss on sale of land
7,300
Interest expense
11,500
Income tax expense
41,000
Total expenses
2,467,800
Net income
$
168,200
VIDEO PHONES, INC.
Balance Sheets
December 31
2021
2020
Assets
Current assets:
Cash
$
159,180
$
85,940
Accounts receivable
73,300
53,000
Inventory
105,000
128,000
Prepaid rent
9,120
4,560
Long-term assets:
Investments
98,000…
Chapter 4 Solutions
Intermediate Accounting
Ch. 4 - The income statement is a change statement....Ch. 4 - What transactions are included in income from...Ch. 4 - Prob. 4.3QCh. 4 - Prob. 4.4QCh. 4 - Prob. 4.5QCh. 4 - What are restructuring costs and where are they...Ch. 4 - Define intraperiod tax allocation. Why is the...Ch. 4 - How are discontinued operations reported in the...Ch. 4 - What is meant by a change in accounting principle?...Ch. 4 - Prob. 4.10Q
Ch. 4 - The correction of a material error discovered in a...Ch. 4 - Define earnings per share (EPS). For which income...Ch. 4 - Prob. 4.13QCh. 4 - Describe the purpose of the statement of cash...Ch. 4 - Prob. 4.15QCh. 4 - Explain what is meant by noncash investing and...Ch. 4 - Distinguish between the direct method and the...Ch. 4 - Prob. 4.18QCh. 4 - Prob. 4.19QCh. 4 - Show the calculation of the following...Ch. 4 - Show the DuPont frameworks calculation of the...Ch. 4 - Prob. 4.22QCh. 4 - Prob. 4.23QCh. 4 - Prob. 4.1BECh. 4 - Multiple -step income statement LO41, LO43 Refer...Ch. 4 - Prob. 4.3BECh. 4 - Multiple -step income statement LO41, LO43 The...Ch. 4 - Prob. 4.5BECh. 4 - Prob. 4.6BECh. 4 - Prob. 4.7BECh. 4 - Discontinued operations LO44 Refer to the...Ch. 4 - Discontinued operations LO44 Refer to the...Ch. 4 - Prob. 4.10BECh. 4 - Prob. 4.11BECh. 4 - Prob. 4.12BECh. 4 - Statement of cash flows; indirect method LO48 Net...Ch. 4 - Prob. 4.14BECh. 4 - Prob. 4.15BECh. 4 - Profitability ratios LO410 The 2018 income...Ch. 4 - Prob. 4.17BECh. 4 - Inventory turnover ratio LO410 During 2018, Rogue...Ch. 4 - Operating versus Nonoperating Income LO41 Pandora...Ch. 4 - Income statement format; single step and multiple...Ch. 4 - Income statement format; single step and multiple...Ch. 4 - Multiple-step continuous statement of...Ch. 4 - Income statement presentation LO41, LO45 The...Ch. 4 - Prob. 4.6ECh. 4 - Income statement presentation; discontinued...Ch. 4 - Discontinued operations; disposal in subsequent...Ch. 4 - Discontinued operations; disposal in subsequent...Ch. 4 - Earnings per share LO45 The Esposito Import...Ch. 4 - Comprehensive income LO46 The Massoud Consulting...Ch. 4 - Prob. 4.12ECh. 4 - Prob. 4.13ECh. 4 - IFRS; statement of cash flows LO48, LO49 Refer to...Ch. 4 - Prob. 4.15ECh. 4 - Prob. 4.16ECh. 4 - Statement of cash flows; indirect method LO48...Ch. 4 - Prob. 4.18ECh. 4 - Prob. 4.19ECh. 4 - Statement of cash flows; indirect method LO48...Ch. 4 - Statement of cash flows; direct method LO48 Refer...Ch. 4 - Prob. 4.22ECh. 4 - Prob. 4.23ECh. 4 - Concepts; terminology LO41, LO42, LO43, LO44,...Ch. 4 - Inventory turnover; calculation and evaluation ...Ch. 4 - Evaluating efficiency of asset management LO410...Ch. 4 - Profitability ratios LO410 The following...Ch. 4 - Prob. 4.28ECh. 4 - Prob. 4.29ECh. 4 - Prob. 4.30ECh. 4 - Prob. 4.31ECh. 4 - Prob. 4.32ECh. 4 - Comparative income statements; multiple-step...Ch. 4 - Discontinued operations LO44 The following...Ch. 4 - Income statement presentation; Discontinued...Ch. 4 - Restructuring costs; Discontinued operations;...Ch. 4 - Income statement presentation; Restructuring...Ch. 4 - Income statement presentation; Discontinued...Ch. 4 - Income statement presentation; statement of...Ch. 4 - Multiple-step statement of income and...Ch. 4 - Statement of cash flows LO48 The Diversified...Ch. 4 - Integration of financial statements; Chapters 3...Ch. 4 - Statement of cash flows; indirect method LO48...Ch. 4 - Calculating activity and profitability ratios ...Ch. 4 - Use of ratios to compare two companies in the same...Ch. 4 - Creating a balance sheet from ratios; Chapters 3...Ch. 4 - Prob. 4.15PCh. 4 - Interim financial reporting Appendix 4 Branson...Ch. 4 - Prob. 4.1BYPCh. 4 - Judgment Case 42 Restructuring costs LO43 The...Ch. 4 - Prob. 4.3BYPCh. 4 - Prob. 4.4BYPCh. 4 - Prob. 4.5BYPCh. 4 - Prob. 4.6BYPCh. 4 - Prob. 4.7BYPCh. 4 - IFRS Case 48 Statement of cash flows;...Ch. 4 - Judgment Case 49 Income statement presentation;...Ch. 4 - Prob. 4.10BYPCh. 4 - Integrating Case 412 Balance sheet and income...Ch. 4 - Prob. 4.13BYPCh. 4 - Prob. 4.17BYPCh. 4 - Prob. 4.18BYPCh. 4 - Continuing Cases Target Case LO43, LO44, LO46,...
Knowledge Booster
Similar questions
- Statement of cash flows direct method The comparative balance sheet of Martinez Inc. for December 31, 20Y4 and 20Y3, is as follows: Dec. 31, 20Y4 Dec. 31, 20Y3 Assets Cash 661,920 683,100 Accounts receivable (net) 992,640 914,400 Inventories 1,394,400 1,363,800 Investments 0 432,000 Land 960,000 0 Equipment 1,224,000 984,000 Accumulated depreciationequipment (481,500) (368,400) Total assets 4,751,460 4,008,900 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) 1,080,000 966,600 Accrued expenses payable (operating expenses) 67,800 79,200 Dividends payable 100,800 91,200 Common stock, 5 par 130,000 30,000 Paid in capital: Excess of issue price over parcommon stock 950,000 450,000 Retained earnings 2,422,860 2,391,900 Total liabilities and stockholders' equity 4,751,460 4,008,900 The income Statement for the year ended December 51. 20Y3. is as follows: Sales 4,512,000 Cost of goods sold 2,352,000 Gross profit 2,160,000 Operating expenses: Depredation expense 113,100 Other operating expenses 1,344,840 Total operating expenses 1,457,940 Operating income 702,060 Other income: Gain on sale of investments 156,000 Income before income tax 858,060 Income tax expense 299,100 Net income 558,960 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: A. Equipment and land were acquired for cash. B. There were no disposals of equipment during the year. C. The investments were sold for 588,000 cash. D. The common stock was issued for cash. E. There was a 528,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.arrow_forwardBreakdown 3/30/2022 3/30/2021 3/30/2020 Operating Cash Flow 90,480,000.00 91,630,000.00 76,230,000.00 Investing Cash Flow (17,280,000.00) (15,280,000.00) 17,910,000.00 Financing Cash Flow (80,150,000.00) (93,090,000.00) (68,190,000.00) End Cash Position 11,470,000.00 18,420,000.00 32,160,000.00 Changes in Cash (6,950,000.00) (16,740,000.00) 25,950,000.00 Beginning Cash Position 18,420,000.00 32,160,000.00 6,210,000.00 Other Cash Adjustment Outside Change in Cash - 3,000,000.00 - Capital Expenditure (12,280,000.00) (41,630,000.00) (8,620,000.00) Issuance of Capital Stock - - - Issuance of Debt - 1,880,000.00 - Repayment of Debt - (1,880,000.00) - Free Cash Flow 78,200,000.00 50,000,000.00 67,610,000.00 Can you make this indirect method of cash flow into a direct method of cash flow? Please donot provide solution in image format and it should be in step by step format and asaparrow_forwardE10.18 (LO 5), AN Suppose the following financial data were reported by 3M Company for 2021 and 2022 (dollars in millions). 3M CompanyBalance Sheets (partial) 2022 2021 Current assets Cash and cash equivalents $ 3,040 $1,849 Accounts receivable, net 3,250 3,195 Inventories 2,639 3,013 Other current assets 1,866 1,541 Total current assets $10,795 $9,598 Current liabilities $ 4,897 $5,839 Instructions Calculate the current ratio and working capital for 3M for 2021 and 2022. Suppose that at the end of 2022, 3M management used $300 million cash to pay off $300 million of accounts payable. How would its current ratio and working capital have changed?arrow_forward
- Ma4. 1. Cash reserves on the Tri-State Medical Equipment Corporation's balance sheet presently amount to $111,200. When Tri-State pays cash for 20% of the purchase price of a new delivery truck, the cash payment will: 1) increase the company's cash reserves. 2) decrease cash on the balance sheet. 3) require an entry on the Statement of Retained Earnings. 4) require an entry to the Reserve for Depreciation on the income statement. 2. If an organization has operating income of $120,000, net income of $150,000, total revenue of $2,000,000, total assets of $1,000,000, and a net worth of $500,000, return on assets is: 1) 6.0%. 2) 7.5%. 3) 12.0%. 4) 15.0%. 5) 30.0%.arrow_forwardProblem 11-4B Prepare a statement of cash flows—indirect method (LO11-2, 11-3, 11-4, 11-5) The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMSIncome StatementFor the year ended December 31, 2021 Net sales $ 2,400,000 Gain on sale of land 9,000 Total revenues 2,409,000 Expenses: Cost of goods sold $ 1,550,000 Operating expenses 595,000 Depreciation expense 13,000 Interest expense 14,000 Income tax expense 60,000 Total expenses 2,232,000 Net income $ 177,000 VIRTUAL GAMING SYSTEMSBalance SheetsDecember 31 2021 2020 Assets Current assets: Cash $ 107,300 $ 50,800 Accounts receivable 66,000 80,000 Inventory 130,000 125,000 Prepaid rent…arrow_forwardProblem 11-4B Prepare a statement of cash flows—indirect method (LO11-2, 11-3, 11-4, 11-5) The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMSIncome StatementFor the Year Ended December 31, 2021 Net sales $ 2,600,000 Gain on sale of land 7,000 Total revenues 2,607,000 Expenses: Cost of goods sold $ 1,650,000 Operating expenses 615,000 Depreciation expense 33,000 Interest expense 34,000 Income tax expense 80,000 Total expenses 2,412,000 Net income $ 195,000 VIRTUAL GAMING SYSTEMSBalance SheetsDecember 31 2021 2020 Assets Current assets: Cash $ 409,500 $ 343,800 Accounts receivable 64,000 80,000 Inventory 160,000 145,000 Prepaid rent 4,600…arrow_forward
- Q. No 1 (B) Consider the following data, From the above data, compute the following: 4. Net increase (decrease) in cash during the year. 5. The cash balance at the end of the year.arrow_forward6.26 in Financial Accounting 14th ed. Prepare a statement of cash flows from changes in balance sheet accounts. The comparitive balance sheet for Incloud Airlines show the following information for a recent year (amt is thousands, US$) Change Amt Direction Cash 40,308* Increase A/R 15,351 Decrease Inventories 15,117 Increase Prepayments 16,776 Increase PPE (at cost) 1,134,644** Increase Accumulated Depreciation 264,088 Increase Other non operating assets 8,711 Increase A/P 660 Decrease Longterm debt 244,285 Increase other non operating liabilities 140,026 Increase Common Stock 96,911 Increase Other current liabilities 114,596 Increase Retained Earnings 340,879 Increase *Cash was 378,511 at beginning of year and 418,819 at end of year. **Incloud did not sell any PPE for the year Net Income was 474,378 Prepare statement of cash flows and treat changes in non-operating assets as investing transactions and changes in non-operating liabilities as…arrow_forwardInitial Outlay Cash Flow in Period 1 2 3 4 $4,000,000 $1,546,170 $1,546,170 $1,546,170 $1,546,170 The Internal Rate of Return (IRR) =? A) 10%. B) 18%. C) 20%. D) 24%.arrow_forward
- Question 5So Long, Inc, has sales of $334,000, costs of $145,400, depreciation expense of $63,200 andinterest expense of $22,300. If the tax rate is 35%, (a) What is the operating cash flow or OCF?(b) Explain why interest paid is not a component of operating cash flow.arrow_forwardStatement of cash flowsdirect method The comparative balance sheet of Martinez Inc. for December 31, 20Y4 and 20Y3, is as follows: Dec 31, 20Y4 Dec. 31,20Y3 Assets Cash.................................. 661,920 683,100 Accounts receivable (net).................................. 992,640 0 914,400 Inventories............................................... 1,394,40 1,363,800 Investments.............................................. 0 432,000 Land..................................................... 960,000 0 Equipment................................................ 1,224,000 984,000 Accumulated depreciationequipment.................... (481,500) (368,400) Total assets............................................ 4,751,460 4,008,900 Liabilities and Stockholders' Equity Accounts payable......................................... 1,080,000 966,600 Accrued expenses payable................................ 67,800 79,200 Dividends payable.................................. 100,800 91,200 Common stock. S par .................................... 130,000 30,000 Paid in capital: Excess of issue price over parcommon stock...... 950,000 450,000 Retained earnings......................................... 2,422,860 2,391,900 Total liabilities and stockholders' equity.................. 4,751,460 4,008,900 The income statement for the year ended December 31, 20Y4, is as follows: Sales.......................................... 4,512,000 Cost of merchandise sold....................... 2,352,000 Gross profit.................................... 2,160,000 Operating expenses: Depreciation expense....................... 113,100 Other operating expenses................... 1,344,840 Total operating expenses................. 1,457,940 Operating income.............................. 702,060 Other income: Gain on sale of investments.................. 156,000 Income before income tax...................... 858,060 Income tax expense............................ 299,100 Net income.................................... 558,960 Additional data obtained from an examination of the accounts in the ledger for 20Y4 are as follows: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for 588,000 cash. d. The common stock was issued for cash. e. There was a 528,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.arrow_forwardStatement of cash flowsindirect method The comparative balance sheet of Coulson, Inc. it December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash 300,600 337,800 Accounts receivable (net) 704,400 609,600 Inventories 918,600 865,800 Prepaid expenses 18,600 26,400 Land 990,000 1,386,000 Buildings 1,980,000 990,000 Accumulated depreciationbuildings (397,200) (366,000) Equipment 660,600 529,800 Accumulated depreciationequipment (133,200) (162,000) Total assets 5,042,400 4,217,400 Liabilities and Stockholders' Equity Accounts payable 594,000 631,200 Income taxes payable 26,400 21,600 Bonds payable 330,000 0 Common stock, 20 par 320,000 180,000 Paid in capital: Excess of issue price over parcommon stock 950,000 810,000 Retained earnings 2,822,000 2,574,600 Total liabilities and stockholders' equity 5,042,400 4,217,400 The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Corporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial & Managerial AccountingAccountingISBN:9781337119207Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Corporate Financial AccountingAccountingISBN:9781337398169Author:Carl Warren, Jeff JonesPublisher:Cengage Learning
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Corporate Financial Accounting
Accounting
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:9781337398169
Author:Carl Warren, Jeff Jones
Publisher:Cengage Learning