Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 1.16S
To determine
Prepare P’s statement of
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Calculate free cash flow for 2017 for Monarch Textiles, Inc., based on the financial information that follows. Assume that
all current liabilities are non-interest-bearing liabilities and that no fixed assets were sold or disposed of during 2017.
(Round your answer to 1 decimal places.)
Sales
Cost of sales
Income statement
Operating expenses
Depreciation
Interest expense
Earnings before taxes
Tax
Net income
Free cash flow
Monarch Textiles, Inc. ($ thousands)
2017
1,280
760
130
62
50
278.00
111.20
166.80
X Answer is complete but not entirely correct.
$ 140.9
Selected balance sheet items
Current assets
Net fixed assets
Current liabilities
2016
360
124
230
2017
490
248
310
Use the following excerpts from Franklin Company's statement of cash flows and other financial records.
2018
2017
Cash flows from operating activities
$250,000
$227,000
Cash flows from investing activities
(36,000)
(37,000)
Cash flows from financing activities
71,000
71,000
Capital expenditures were 50%
of investing activities, both years
Cash dividends paid were $20,000, both years
Determine the company's free cash flow for 2018 and 2017.
2018
2017
コ
Free Cash Flow
Accounting numeric field
%24
%24
Direction: Study the given data below and compute for (1) the cash generated/used in financing activities, (2) the net change in cash for the year, and (3) prepare the CFS for the year.
Learning is Fun Company has presented the following in order to aid the account in preparing CFS during the month.
Net income: P200, 000
Depreciation expense: P25, 000
Gain on sale on property and equipment: P100. 000
Decrease in trade and other receivables: P 70, 000
Purchase of property and equipment: P200, 000
Payment of loan from bank: P150, 000
Compute for the cash generated/used in financing activities.
Based on the given above, compute for the net change in cash for the year.
Chapter 1 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 1 - Financial statements can be used by which of the...Ch. 1 - Prob. 2QCCh. 1 - Hoot Enterprises buys a warehouse for 590,000 to...Ch. 1 - Prob. 4QCCh. 1 - Prob. 5QCCh. 1 - The accounting equation can be expressed as a....Ch. 1 - Prob. 7QCCh. 1 - Alliance Corporation holds cash of 8,000 and owes...Ch. 1 - During the year, ChemClean Corporation has 280,000...Ch. 1 - Prob. 10QC
Ch. 1 - Dynasty Company has current assets of 50,000 and...Ch. 1 - Which financial statement would show how well a...Ch. 1 - On which financial statement would the ending...Ch. 1 - What item flows from the income statement to the...Ch. 1 - What item flows from the income statement to the...Ch. 1 - Prob. 16QCCh. 1 - LO 5 (Learning Objective 5: Identify ethical...Ch. 1 - Prob. 1.1SCh. 1 - Prob. 1.2SCh. 1 - Prob. 1.3SCh. 1 - LO 3 (Learning Objective 3: Apply the accounting...Ch. 1 - LO 3 (Learning Objective 3: Apply the accounting...Ch. 1 - LO 3 (Learning Objective 3: Identify assets,...Ch. 1 - LO 3 (Learning Objective 3: Accounting equation)...Ch. 1 - LO 4 (Learning Objective 4: Identify income...Ch. 1 - LO 4 (Learning Objective 4: Identify appropriate...Ch. 1 - LO 4 (Learning Objective 4: Explain aspects of...Ch. 1 - Prob. 1.11SCh. 1 - LO 4 (Learning Objective 4: Construct an income...Ch. 1 - (Learning Objective 4: Construct a statement of...Ch. 1 - (Learning Objective 4: Construct a balance sheet)...Ch. 1 - LO 4 (Learning Objective 4: Solve for retained...Ch. 1 - Prob. 1.16SCh. 1 - Prob. 1.17SCh. 1 - Prob. 1.18SCh. 1 - LO 1.2, 3, 4. 5 (Learning Objectives 1, 2, 3, 4,...Ch. 1 - Group A LO 3, 4 (Learning Objectives 3, 4: Apply...Ch. 1 - Which company appears to have the strongest...Ch. 1 - LO 3, 4 (Learning Objectives 3, 4: Apply the...Ch. 1 - LO 4 (Learning Objective 4: Identify financial...Ch. 1 - LO 4 (Learning Objective 4: Construct a balance...Ch. 1 - LO 3,4 (Learning Objectives 3, 4: Apply the...Ch. 1 - LO 4 (Learning Objective 4: Construct an income...Ch. 1 - LO 4 (Learning Objective 4: Construct an income...Ch. 1 - LO 4 (Learning Objective 4: Construct a balance...Ch. 1 - Prob. 1.29AECh. 1 - Prob. 1.30AECh. 1 - Prob. 1.31AECh. 1 - Prob. 1.32BECh. 1 - Which company appears to have the strongest...Ch. 1 - LO 3,4 (Learning Objectives 3, 4: Apply the...Ch. 1 - LO 4 (Learning Objective 4: Identify financial...Ch. 1 - LO 4 (Learning Objective 4: Construct a balance...Ch. 1 - (Learning Objectives 3, 4: Apply the accounting...Ch. 1 - Prob. 1.38BECh. 1 - LO 4 (Learning Objective 4: Construct an income...Ch. 1 - LO 4 (Learning Objective 4: Construct a balance...Ch. 1 - LO 4 (Learning Objective 4: Construct a statement...Ch. 1 - Prob. 1.42BECh. 1 - LO 4 (Learning Objective 4: Construct an income...Ch. 1 - An organizations investors and creditors will...Ch. 1 - Prob. 1.45QCh. 1 - Prob. 1.46QCh. 1 - Assets are usually reported at their a. appraised...Ch. 1 - Prob. 1.48QCh. 1 - Prob. 1.49QCh. 1 - Prob. 1.50QCh. 1 - Prob. 1.51QCh. 1 - All of the following are current assets except a....Ch. 1 - Prob. 1.53QCh. 1 - Prob. 1.54QCh. 1 - Prob. 1.55QCh. 1 - Prob. 1.56QCh. 1 - Net income appears on which financial...Ch. 1 - Cash paid to purchase a building appears on the...Ch. 1 - The stockholders equity of Kowalski Company at the...Ch. 1 - Prob. 1.60QCh. 1 - Which of the following factors should influence...Ch. 1 - LO 3, 4 (Learning Objectives 3, 4: Apply the...Ch. 1 - Prob. 1.63APCh. 1 - LO 2, 3, 4 (Learning Objectives 2, 3, 4: Apply...Ch. 1 - LO 3,4 (Learning Objectives 3, 4: Evaluate...Ch. 1 - LO 3, 4 (Learning Objectives 3,4: Evaluate...Ch. 1 - LO 4 (Learning Objective 4: Construct financial...Ch. 1 - Group B LO 3, 4 (Learning Objectives 3, 4: Apply...Ch. 1 - LO 3,4 (Learning Objectives 3, 4: Apply the...Ch. 1 - Prob. 1.70BPCh. 1 - LO 3,4 (Learning Objectives 3, 4: Evaluate...Ch. 1 - LO 3, 4 (Learning Objectives 3,4: Evaluate...Ch. 1 - Prob. 1.73BPCh. 1 - Prob. 1.74SCCh. 1 - Decision Cases LO 1, 4 (Learning Objectives 1, 4:...Ch. 1 - LO 3, 4 (Learning Objectives 3, 4: Evaluate...Ch. 1 - Prob. 1.77EIC
Knowledge Booster
Similar questions
- Cash flow identity. Use the data from the following financial statements in the popup window, . The company paid interest expense of $17,100 for 2017 and had an overall tax rate of 40% for 2017. Verify the cash flow identity: cash flow from assets = cash flow to creditors + cash flow to owners The cash flow from assets is $ 24,380. (Round to the nearest dollar.) The cash flow to creditors is $ 45000. (Round to the nearest dollar.) The cash flow to owners is $ (Round to the nearest dollar.)arrow_forwardCash flow identity. Use the data from the following financial statements the popup window,. The company paid interest expense of $17,700 for 2017 and had an overall tax rate of 40% for 2017. Verify the cash flow identity: cash flow from assets = cash flow to creditors + cash flow to owners The cash flow from assets is $ (Round to the nearest dollar.)arrow_forwardCash flow identity. Use the data from the following financial statements in the popup window, . The company paid interest expense of $17,100 for 2017 and had an overall tax rate of 40% for 2017. Verify the cash flow identity: cash flow from assets = cash flow to creditors + cash flow to owners The cash flow from assets is $ 24,380. (Round to the nearest dollar.) The cash flow to creditors is $ (Round to the nearest dollar.)arrow_forward
- Calculate the Cash Flows in the Statement of Cash Flows below from the provided Balance sheet and Income Statement BALANCE SHEET (in millions of dollars) INCOME STATEMENT (in millions of dollars) 2015 2014 2015 2014 Assets Net sales $3,000.0 $2,850.0 Cash and equivalents 10 $ 80 Operating costs except depreciation and amortizatio 2,616.2 2,497.0 90.0 100.0 Accounts receiva ble 375 315 Depreciation and amortization $ 283.8 $ 263.0 Inventories 615 415 Earnings before interest and taxes (EBIT) Total current asse ts $ 1,000 $ 810 Less interest 88.0 60.0 $ 195.8 $ 203.0 Net plant and equipment 1,000 870 Earnings before taxes (EBT) $ 2,000 1,680 Total assets Taxes 78.3 81.2 117.5 $ 121.8 Net income Liabilities and Equity Common dividends 57.5 53.0 Addition to re tained earnings Accounts payable $ $ 60 $ 30 60.0 $ 68.8 Accruals 140 130 Notes payable 110 60 Tax rate 40% 40% 310 $ Total current liabilities 220 Long-term bonds 750 580 $ 1,060 $ Total liabilities 800 Common stock (50,000,000…arrow_forward(AACSB) AnalysisYou review a company’s statement of cash flows and find that cash inflows from operations are $150,000,net outflows from investing are $80,000, and net inflows from financing are $60,000. Did the company’scash balance increase or decrease for the year? By what amount? What types of activities would you findunder the category investing activities? Under financing activities? If you had access to the company’sincome statement and balance sheet, why would you be interested in reviewing its statement of cash flows?What additional information can you gather from the statement of cash flows?arrow_forwardanswer these 4 questions please: Slater Company prepares its statement of cash flows using the indirect method and provided the following information for the year 2018. • Net cash flows from operating activities: $32,000 positive • Net cash flows used for investing activities: $38,000 negative • Net cash flows used for financing activities: $9,000 negative How much was the net change in cash during the year based on the information given? Question 17Answer a. $79,000 positive. b. $3,000 negative. c. $15,000 negative. d. $3,000 positive. Supper Company Ltd., reported the following stockholders’ equity on its balance sheet at June 30, 2021: Supper Company Ltd. Stockholders’ Equity June 30,2021 Paid-in Capital Preferred stock, 10%,? par, 650,000 shares authorized, 280,000 shares issued $ 1,400,000 Common stock, par value $? per share, 5,000,000…arrow_forward
- Calculate free cash flow for 2017 for Monarch Textiles, Inc., based on the financial information that follows. Assume that all current liabilities and that no fixed assets were sold or disposed of during 2017. (Round your answer to 1 liabilities are non-interest-bearing decimal places.) Sales Cost of sales Operating expenses Depreciation Income statement Interest expense Earnings before taxes Tax Net income Free cash flow Monarch Textiles, Inc. ($ thousands) 2017 1,250 750 125 60 50 265.00 106.00 159.00 Selected balance sheet items Current assets Net fixed assets Current liabilities 2016 350 120 225 2017 475 240 305arrow_forwardComputing free cash flow Julie Lopez Company expects the following for 2018: Net cash provided by operating activities of $148,000. Net cash provided by financing activities of $56,000. Net cash used for investing activities of $77,000 (no sales of long-term assets). Cash dividends paid to stockholders of $7,000. How much free cash flow does Lopez expect for 2018?arrow_forwardPreparing a statement of cash flows using the direct method Jelly Bean, Inc. began 2018 with cash of $58,000. During the year, Jelly Bean earned revenue of $595,000 and collected $614,000 from customers. Expenses for the year totaled $427,000, of which Jelly Bean paid $212,000 in cash to suppliers and $205,000 in cash to employees. Jelly Bean also paid $148,000 to purchase equipment and a cash dividend of $57,000 to its stockholders during 2018. Prepare the company’s statement of cash flows for the year ended December 31, 2018. Format operating activities by the direct method.arrow_forward
- Using the information below, complete the operating cash flow section of the Statement of Cash Flows for Peter Ltd using direct method. Your presentation must be consistent with the requirements of AASB107. Ignore tax. Reporting date is 30 June. The balances of selected accounts of Peter Ltd at 30 June 2021 and 30 June 2022 were ($000): 2021 2022 Cash 3850 1200 Inventory 3750 4250 Accounts receivable 2800 3500 Allowance for doubtful debts 320 260 Land 5000 5000 Plant 2750 2800 Accumulated depreciation 490 450 Accounts payable 3200 3500 Rent payable 100 130 Salaries payable 120 190 Share capital 1000 1000 Sales (on credit) 7750 6550 Cost of goods sold 1250 1100 Doubtful debts expense 280 300 Rent expense 540 450 Salaries expense 800 750 Depreciation expense 260 180 Required: Peter Ltd’s operating cash flow section extracted from the Statement of Cash Flows for year ended 30 June 2022 (Direct Method)arrow_forwardE12-13 Preparing and Evaluating a Statement of Cash Flows (Indirect Method) from Comparative Balance Sheets and Income Statements [LO 12-1, LO 12-2, LO 12-3, LO 12-4, LO 12-5] Consultex, Inc., was founded in 2015 as a small financial consulting business. The company had done reasonably well in 2015- 2017 but started noticing its cash dwindle early in 2018. In January 2018, Consultex had paid $15.000 to purchase land and repaid $3.000 principal on an existing promissory note. In March, the company paid $1.800 cash for dividends and $1,000 to repurchase and eliminate Consultex stock that had previously been issued for $1.000. To improve its cash position, Consultex borrowed $4.800 by signing a new promissory note in May and also issued stock to a new private investor for $1,800 cash. Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INC. Balance Sheet October 31 2018 2017 Assets Cash $18,330 $13,600 13,600 Accounts Receivable Prepaid Rent Land…arrow_forwardrect method. Carlson Software Corp. has assembled the following data for the years ending December 31, P12-60A (Learning Objectives 2, 3: Prepare the statement of cash flows-indirect method) 2016 and 2015 3. Prepal cash flows from opl 4 5 6 7 8 $ 10 11 12 13 Current Accounts: Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses Current liabilities: Accounts payable Income tax payable Accrued liabilities Transaction Data for 2016: Acquisition of land by issuing long-term note payable..... Stock dividends Collection of loan. Depreciation expense. Purchase of building with cash. Retirement of honds payable by issuing common stock.... Purchase of long-term investment with cash........ $202,000 34,900 12,400 19,000 159,000 80,000 45,300 31, 2016 Format December 31, 2016 $ 105,800 18,000 8,600 2,900 equipment Amortization expense $ 9,300 28,600 15,000 Purchase of treasury stock. Loss on sale of equipment...... Payment of cash dividends Issuance of…arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Fundamentals of Financial Management, Concise Edi...FinanceISBN:9781305635937Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Fundamentals of Financial Management, Concise Edi...
Finance
ISBN:9781305635937
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning