Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN: 9781285595047
Author: Weil
Publisher: Cengage
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Capstone Turbine Corporation produces and sells turbine generators for such applications as charging electric, hybrid vehicles. Capstone Turbine reported the following financial data for a recent year (in thousands):
Net cash flows from operating activities $(23,018) Cash and cash equivalents 32,221
a. Determine the monthly cash expenses. Round to one decimal place.b. Determine the ratio of cash to monthly cash expenses. Round to one decimal place.c. Based on your analysis, do you believe that Capstone Turbine will remainin business?
Directions: Read and analyze the problem below then do the following requirements.
Assuming, you owned a sari-sari store and had a beginning cash amounting of P50, 000 and the following transactions occurred during the month.
Purchase of goods. Paid in cash. 100, 000
Sales of goods. Received cash. 150,000
Paid utilities 30,000
Paid rent 10,000
Sold equipment for cash 100, 000
Owner withdraws investment 10, 000
Required:
Compute for your net cash flow generated/used in operating activities.
Compute for your net cash flow generated/used in investing activities.
Compute for your net cash flow used in financing activities.
Prepare a cash flows statement using direct method.
Can you explain how you got the figure for purchase of equipment (215,000) and also please answer the below multiple choice:
The term cash as used on the statement of cash flows includes all the following EXCEPT:
A) cash due from customers within 30 days.
B) cash on hand.
C) cash equivalents.
D) cash in bank
Which of the following statements accurately describes the statement of cash flows?
A) It shows the relative proportion of debt and assets.
B) It shows the link between accrual-based income and the cash reported on the balance sheet.
C) It indicates when long-term debt will mature.
D) It shows the link between book income and earnings per share.
Which of the following is NOT a true statement about the statement of cash flows?
A) It shows where cash came from and how it was spent.
B) It reports why cash increased or decreased.
C) It covers a specific span of time the same as the income statement.
D) It shows how the profits or losses of the company were generated.…
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Similar questions
- In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. borrowed from the bank for business loan B. declared dividends, to be paid next year C. purchased treasury stock D. purchased a two-year insurance policy E. purchased plant assetsarrow_forwardWhich item is added to net income when computing cash flows from operating activities? a. Gain on the disposal of property, plant, and equipment b. Increase in wages payable c. Increase in inventory d. Increase in prepaid rent Use the following information for Multiple-Choice Questions 11-9 and 11-10: Cornett Company reported the following information: cash received from the issuance of common stock, $150,000; cash received from the sale of equipment, $14,800; cash paid to purchase an investment, $20,000; cash paid to retire a note payable, $50,000; and cash collected from sales to customers, $225,000.arrow_forwardThe following is cash flow data for Rocket Transport: Cash dividend $91,000 Purchase of bus $29,000 Interest paid on debt $25,000 Sales of old equipment $55,500 Repurchase of stock $92,000 Cash payments to suppliers $125,000 Cash collections from customers $410,000 a. Find the net cash provided by investing activities: Net cash provided $? b. Find the net cash used in financing activities: Net cash used $? c. Find the net increase in cash for the year: Net increase in cash $?arrow_forward
- The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following: a. If sales for the current year were $375,000 and accounts receivable increased by $29,000 during the year, what was the amount of cash received from customers?$fill in the blank 1 b. If income tax expense for the current year was $39,000 and income tax payable decreased by $21,000 during the year, what was the amount of cash payments for income tax?$fill in the blank 2arrow_forwardSantana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue $ 24,707 Net sales 18,393 Total revenue 43,100 Cost of goods sold $ 14,552 Depreciation expense—Office equipment 350 Depreciation expense—Computer equipment 1,230 Wages expense 3,050 Insurance expense 515 Rent expense 1,775 Computer supplies expense 1,235 Advertising expense 530 Mileage expense 260 Repairs expense—Computer 910 Total expenses 24,407 Net income $ 18,693 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Dec. 31, 2019 Assets Cash $ 75,427 $ 56,252…arrow_forwardKulutz Hair Salon had net income of $93,000 for the year just ended. Frizz collected the following additional information to prepare its statement of cash flows for the year: Increase in accounts receivable $10,000 Decrease in accounts payable $2,000 Increase in retained earnings $31,000 Cash received from sale of equipment $18,000 Loss on sale of equipment $5,000 Depreciation expense $16,000 Frizz uses the indirect method to prepare its statement of cash flows. What is Frizz's net cash provided (used) by operating activities? a. $102,000 b. $120,000 c. $126,000 d. $92,000arrow_forward
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