FINANCIAL ACCOUNTING: TOOLS FOR BUSINES
9th Edition
ISBN: 9781119595649
Author: Kimmel
Publisher: WILEY
expand_more
expand_more
format_list_bulleted
Question
error_outline
This textbook solution is under construction.
Students have asked these similar questions
(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?
Each of the items below must be considered in preparing a statement of cash flows for Baskerville Co. for the year ended December 31, 2020. For each item, state how it should be shown in the statement of cash flows for 2020 if the indirect method is used.
(a)
Issued bonds for $200,000 cash.
Cash Outflow from Operating ActivityCash Outflow from Financing ActivityCash Inflow from Financing ActivityCash Inflow from Operating ActivityCash Inflow From Investing ActivityCash Outflow from Investing Activity
(b)
Purchased equipment for $150,000 cash.
Cash Outflow from Investing ActivityCash Inflow from Operating ActivityCash Outflow from Operating ActivityCash Inflow from Financing ActivityCash Inflow From Investing ActivityCash Outflow from Financing Activity
(c)
Sold land costing $20,000 for $20,000 cash.
Cash Outflow from Investing ActivityCash Outflow from Financing ActivityCash Inflow from Operating ActivityCash Outflow from…
The following data are taken from the records of F.Shield Company for the year 2020. Prepare a
statement of cash flows then determine the following:
a. Net cash flow from operating activities
b. Net cash flow from investing activities
c. Net cash flow from financing activities
d. Net increase/decrease in cash
e. Cash balance on December 31, 2021
Cash balance on January 1, 2020 is P 308, 00
Pravision for bad debts
28, 000
Proceeds from sale of land
950,000
Receivable from customers
500, 000
Cash purchase of service vehicle
800, 00
900, 000
Additional investment of owner
Rent income received
32, 000
Principal long-term loan paid
600, 000
Cash receipt from customers
600, 000
Depreciation expense
40, 00
Payment of operating expenses
975, 000
Proceeds of BDO loan
350, 000
Dividends income received
23, 000
Asset withdrawal of owner
125, 000
Knowledge Booster
Similar questions
- Use a spreadsheet and the following financial information from Mineola Companys financial statements to build a template that automatically calculates the net operating cash flow. It should be suitable for use in preparing the operating section of the statement of cash flows (indirect method) for the year 2018.arrow_forwardUse the following excerpts from Swansea Companys financial information to prepare the operating section of the statement of cash flows (direct method) for the year 2018.arrow_forwardUse the following information from Birch Companys balance sheets to determine net cash flows from operating activities (indirect method), assuming net income for 2018 of $122,000.arrow_forward
- Use the following excerpts from OpenAir Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.arrow_forwardUse the following excerpts from Tungsten Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.arrow_forwardUse the following excerpts from Mountain Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.arrow_forward
- Use the following excerpts from Fromera Companys financial information to prepare the operating section of the statement of cash flows (direct method) for the year 2018.arrow_forwardUse the following excerpts from Bolognese Companys statement of cash flows and other financial records to determine the companys free cash flow for 2018 and 2017.arrow_forwardRatio Analysis Consider the following information taken from Chicago Water Slides (CWSs) financial statements: Also, CWSs operating cash flows were $25,658 and $29,748 in 2019 and 2018, respectively. Note: Round all answers to two decimal places. Required: 1. Calculate the current ratios for 2019 and 2018. 2. Calculate the quick ratios for 2019 and 2018. 3. Calculate the cash ratios for 2019 and 2018. 4. Calculate the operating cash flow ratios for 2019 and 2018. 5. CONCEPTUAL CONNECTION Provide some reasons why CWSs liquidity may be considered to be improving and some reasons why it may be worsening.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning