Pina Colada Corp.'s comparative balance sheets are presented below.CashAccounts receivableLandBuildingsAccumulated depreciation-buildingsTotalAccounts payableCommon stockRetained earningsTotalPina Colada Corp.Comparative Balance SheetsDecember 31Additional information:1.2.3.2022Free cash flow$ 14,20021,50019,60070,100(15,400)$110,000$ 11,90075,9002021$ 11,00023,50025,80070,100(10,500)$119,900$30,70070,60022,200$110,000 $119,90018,600Net income was $22,500. Dividends declared and paid were $18,900.No noncash investing and financing activities occurred during 2022.The land was sold for cash of $4,900.Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

The cash flow from operating activities include the cash flow from day to day regular activities of…

Pina Colada Corp.'s comparative balance sheets are presented below. Cash Accounts receivable Land Buildings Accumulated depreciation-buildings Total Accounts payable Common stock Retained earnings Total Pina Colada Corp. Comparative Balance Sheets December 31 Additional information: 1. 2. 3. 2022 Free cash flow $ $14,200 21,500 19,600 70,100 (15,400) $110,000 $ 11,900 75,900 22,200 $110,000 2021 $11,000 23,500 25,800 70,100 (10,500) $119,900 $30,700 70,600 18,600 $119,900 Net income was $22,500. Dividends declared and paid were $18,900. No noncash investing and financing activities occurred during 2022. The land was sold for cash of $4,900. Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Pina Colada Corp.'s comparative balance sheets are presented below. Cash Accounts receivable Land Buildings Accumulated depreciation-buildings Total Accounts payable Common stock Retained earnings Total Pina Colada Corp. Comparative Balance Sheets December 31 Additional information: 1. 2. 3. 2022 Free cash flow $ $14,200 21,500 19,600 70,100 (15,400) $110,000 $ 11,900 75,900 22,200 $110,000 2021 $11,000 23,500 25,800 70,100 (10,500) $119,900 $30,700 70,600 18,600 $119,900 Net income was $22,500. Dividends declared and paid were $18,900. No noncash investing and financing activities occurred during 2022. The land was sold for cash of $4,900. Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 35E: Classification of Cash Flows The following are several items that might be disclosed on a companys...

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1919m2LSFAJxzbwov4D68iWUmoFzSg/formResponse?pli=1 1. The following item would be classified as an investing activity on the statement of cash flows: * O A) Payments for inventory. O B) Acquisitions of equipment. O C) Proceeds from borrowing. O D) Payments on loans. O E) None of the above. 2. Common-size income statement prepared when: O A) Each income statement item is expressed as a percentage of total assets. O B) Each income statement item is expressed as a percentage of net sales. O C) Each income statement item is expressed as a percentage of net income. D) Each income statement item is expressed as a percentage of cash flow O E) None of the above 9:59 AM eD 40 ENG 22-Dec-2021 M TOSHIR O O O OO
Common-size Balance Sheet. Explain what it is and why it is used inbusiness. Prepare common-size balance sheet for Target with the infoprovided below. Assets CashAccounts receivableInventoryOther current assetsTotal current assetsGross plant and equipmentAccumulated depreciationNet plant and equipmentLong-term investmentsGoodwill, trademarks, andother intangible assetsTotal assets $ Dec 31, 2022$20,2684,8733.2772,886$31,304$25,032-10,065$14,96711,512 32,272 $90,055
Classifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. AnswerOperatingInvestingFinancing AnswerAddSubtract 2. Repurchases of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 3. Purchases of property and equipment. AnswerOperatingInvestingFinancing AnswerAddSubtract 4. Sale of investments classified as long-term. AnswerOperatingInvestingFinancing AnswerAddSubtract 5. Proceeds from the issuance of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 6. Increase in prepaid expenses and other current assets. AnswerOperatingInvestingFinancing AnswerAddSubtract 7. Acquisition for cash of a competitor.…
Question 3. Use the following information for Tesconi. Draw up a balance sheet, income statement, cash flow statement for this company in 2023. Account 2023 2022 Sales 366996 32220 253122 14300 24255 15235 Depreciation Cost of good sold Interest Cash A/R N/P L-T Debt Other CL Common stock and paid-in surplus Accumulated retained earnings Net FA A/P Inventory Taxe rate Dividend 10800 95000 15553 40000 365734 27420 27155 20000 35% 24046 12448 12000 80000 11571 40000 219826 324695 23184 25392
III. The following changes in the statement of financial position accounts of BC were gathered for preparation of Statement on Cash Flow: Cash Short-term investment Accounts receivable Inventory Noncurrent investment Equipment Accumulated depreciation - increase Accounts payable Dividends payable Short-term notes, non-trade Long-term debts Ordinary share, P10 par Share premium (APIC) Accumulated profits Increase (Decrease) 270,000 200,000 (20,000) 100,000 (100,000) 700,000 50,000 (5,000) 160,000 300,000 130,000 150,000 75,000 290,000 The following additional information relates to the same year: a. Net income was P1,090,000. b. Cash dividend declared was P800,000. c. Equipment costing P600,000 and having carrying cost of P350,000 was sold for P350,000. Required: Determine the following: 1. Total net cash flow 2. Net cash flow from operating 3. Net cash flow from investing 4. Net cash flow from financing
REQUIRED Study the statement of cash flows of Mantis Limited for the year ended 31 December 2021 and answer the following questions: Calculate the following for the year ended 31 December 2021: Depreciation Dividends paid Of what significance is this statement of cash flows to the shareholders of Mantis Limited? Comment on the following: Cash flows from operating activities (R181 800) 1.3.2. Increase in inventory (R808 000) Increase in receivables (R606 000) Interest paid (R80 800) Cash flows from investing activities (R2 343 200) INFORMATION MANTIS LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021 R Cash flows from operating activities (181 800) Operating profit 979 700 Depreciation ? Profit before working capital changes ? Working capital changes (808 000) Increase in inventory (808 000) Increase in receivables…
11 Compute Cash Flow from Operating Activities from the following details: Particulars Trade Receivables: Debtors CA Bills Receivable CA Trade Payables: Creditors CL Bills Payable CL L Expenses Outstanding Accrued Income CAT Depreciation on Fixed Assets No + Surplus, i.e., Balance in Statement of Profit & Loss 31st March, 2023 (R) 50,000 23,000 28,000 22,000 4,500 9,000 5,000 90,000 31st March 2022 ) 60,000 25,000 32,000 35,000 3,500 8,000 4,000 80,000
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Classification of Cash Flows The following are several items that might be disclosed on a companys statement of cash flows presented using the indirect method. a. Net income b. Depreciation expense c. Issuance of common stock d. Loss on disposal of equipment e. Purchase of a building f. Decrease in accounts payable g. Converted bonds into common stock h. Sale of long-term investment i. Payment of interest j. Increase in inventory Required: 1. Indicate whether each item should be classified as a cash flow from operating activities, cash flow from investing activities, cash flow from financing activities, or noncash investing and financing activity. 2. CONCEPTUAL CONNECTION Why is the proper classification of cash flows important?
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8. Compute the acid-test (quick ratio) ratio using the following data: highly liquid assets cash, AR, ST investment A) B) C) D) 1.15 1.24 1.33 1.86 Answer: B Cash Inventory Accounts Receivable Current ratio $115,000 105,000 55,000 2.00