Financial Accounting, Student Value Edition (5th Edition)
Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Chapter 11, Problem 24BE

Preparing a statement of cash flows—indirect method (Learning Objective 3) 20-25 min.

The income statement and additional data of Amalgamated Services, Inc., follow:

Amalgamated Services, Inc.

Income Statement

Year Ended June 30, 2018

Revenues
Sales Revenue $281,000
Dividend Revenue 10,000
Total Revenues $291,000
Expenses:
Cost of Goods Sold $101,000
Salaries Expense 60,000
Depreciation Expense 17,000
Advertising Expense 15,000
Interest Expense 3,000
income Tax Expense 14,000
Total Expenses 210,000
Net Income $ 81,000

Additional data:

  1. a. Acquisition of fixed assets totaled $115,000. Of this amount, $85,000 was paid in cash; a $30,000 note payable was signed for the remainder.
  2. b. Proceeds from the sale of land totaled $21,000. No gain or loss was recognized on the sale.
  3. c. Proceeds from issuance of common stock total $34,000.
  4. d. Payment of a long-term note payable was $17,000.
  5. e. Payment of dividends was $11,000.
  6. f. Data from the comparative balance sheet follow:
June 30 2018 2017
Current Assets:
Cash.............................................................................. $61,000 $28,000
Accounts Receivable................................................... 26,000 35,000
Inventory................................................................... 39,000 25,000
Current Liabilities:
Accounts Payable........................................................ $28,000 $17,000
Accrued Liabilities....................................................... 15,000 28,000

Requirements

  1. 1. Prepare Amalgamated Services’ statement of cash flows for the year ended June 30, 2018, using the indirect method.
  2. 2. Calculate Amalgamated Services free cash flow for the year ended June 30, 2018.
  3. 3. Evaluate Amalgamated Services’ cash flows for the year. In your evaluation, mention all three categories of cash flows as well as free cash flow and give the reason for your evaluation.
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Subject - account  Please help me.  Thankyou.
ccClassify each cash transaction between Operating (O), Investing (I), or Financing (F) activities  using the following data: __Cash at the beginning of the year: $650,000     Cash Receipts from:     __Bank (Interest on CD) $6,000     __Customers Sales $872,000     __Interest $33,000     __Dividends $3,600   Cash payments for:     __Dividends $2,500     __Raw Materials $ 3,800     __Wages Expense $4,000     __Land $10,000     __Interest $4,000
Sales CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 332,400 213,900 118,500 60,700 25,600 32,200 11,800 $ 20,400 Required: Use the indirect method to prepare the operating activities section of Cruz's statement of cash flows. Navigation: 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect. ☑ Open Excel in new tab Activate

Chapter 11 Solutions

Financial Accounting, Student Value Edition (5th Edition)

Ch. 11 - Prob. 1SCCh. 11 - Operating activities are most closely related to:...Ch. 11 - Prob. 3SCCh. 11 - Prob. 4SCCh. 11 - Finlay, Inc., earned net income of 63,000 after...Ch. 11 - Prob. 6SCCh. 11 - Prob. 7SCCh. 11 - Prob. 8SCCh. 11 - Prob. 9SCCh. 11 - Elliot Enterprises had operating expenses of...Ch. 11 - Prob. 11SCCh. 11 - Prob. 12SCCh. 11 - Prob. 1SECh. 11 - Prob. 2SECh. 11 - Prob. 3SECh. 11 - Prob. 4SECh. 11 - Prob. 5SECh. 11 - Prob. 6SECh. 11 - Operating activitiesindirect method (Learning...Ch. 11 - Prob. 8SECh. 11 - Operating activitiesdirect method (Learning...Ch. 11 - Prob. 10SECh. 11 - Prob. 11SECh. 11 - Prob. 12SECh. 11 - Prob. 13AECh. 11 - Prob. 14AECh. 11 - Prob. 15AECh. 11 - Preparing a statement of cash flowsindirect method...Ch. 11 - Prob. 17AECh. 11 - Prob. 18AECh. 11 - Prob. 19AECh. 11 - Prob. 20AECh. 11 - Prob. 21AECh. 11 - Prob. 22BECh. 11 - Prob. 23BECh. 11 - Preparing a statement of cash flowsindirect method...Ch. 11 - Prob. 25BECh. 11 - Prob. 26BECh. 11 - Prob. 27BECh. 11 - Prob. 28BECh. 11 - Prob. 29BECh. 11 - Calculating certain information using the direct...Ch. 11 - Prob. 31APCh. 11 - Prob. 32APCh. 11 - Prob. 33APCh. 11 - Prob. 34APCh. 11 - Prob. 35APCh. 11 - Prob. 36APCh. 11 - Prob. 37BPCh. 11 - Prob. 38BPCh. 11 - Prob. 39BPCh. 11 - Prob. 40BPCh. 11 - Prob. 41BPCh. 11 - Prob. 42BPCh. 11 - Prob. 1CECh. 11 - Prob. 1CPCh. 11 - Apply Your Knowledge Ethics In Action Case 1....Ch. 11 - Case 2. Kevin Sailors, the CEO of Candle...Ch. 11 - Financial Analysis Purpose: To help to familiarize...Ch. 11 - Prob. 1IACh. 11 - Small Business Analysis Purpose: To help you...Ch. 11 - Written Communication Prepare a paper outlining...Ch. 11 - Comprehensive Problem The Accounting Cycle and...
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