1. What is the the difference between cashflow and net income? 2. Does "Depreciation & Amortization" expense affect cash (ignoring income taxes)? 3. The title of the Forbes news article stated "Carolina Hurricanes Owner Lost $1.3 Million Operating PNC Arena." Did the owner actually

1. What is the the difference between cashflow and net income? 2. Does "Depreciation & Amortization" expense affect cash (ignoring income taxes)? 3. The title of the Forbes news article stated "Carolina Hurricanes Owner Lost $1.3 Million Operating PNC Arena." Did the owner actually

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Benitez Co incurred the following transactions: 1. Introduction of motor car by owner £12,000 2. Repayment of a loan £17,000 3. Sale of inventories at cost £8,000 for cash 4. Purchase of computer equipment for cash £11,000 Which two of the above transactions will affect the total value of assets held? O A. 1 and 2 O B. 3 and 4 O C. 1 and 4 D. 2 and 3
1. Why does the company add back depreciation to compute net cash flows from operating activities? 2. Why are there changes in accounts receivable and inventories as adjustments to net earnings. Are accounts receivable and inventories balances increasing or decreasing during the year? 3. It is reported that the company invested $572 million in property, plant, and equipment. Is this an appropriate type of expenditure for the company to make? What relation should expenditures for PPE have with depreciation expense? 4. Stryker paid $300 million to repurchase its common stock in fiscal 2018 and, in addition, paid dividends of $703 million. Thus, it paid $1.003 million of cash to its stockholders during the year. How do we evaluate that use of cash relative to other possible uses for the company's cash? 5. Provide an overall assessment of the company's cash flows for fiscal 2018. In the analysis, consider the sources and uses of cash.
IZ Corporation purchased land for $425,000. Later in the year, the company sold a different piece of land with a book value of $225,000 for $270,000. How are the effects of these transactions reported on the statement of cash flows assuming the indirect method is used? Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank. Transactions Action Amount Gain on sale of land $fill in the blank 2 Cash received from sale of land $fill in the blank 4 Cash paid for purchase of land $fill in the blank 6
Saved Help Creative Sound Systems sold investments, land, and its own common stock for $34 million, $14.6 million, and $39.2 million, respectively. Creative Sound Systems also purchased treasury stock, equipment, and a patent for $20.6 million, $24.6 million, and $11.6 million, respectively. What amount should the company report as net cash flows from investing activities? (List cash outflows and any decrease in cash as negative amounts. Enter your answer in millions. (I.e., $10,000,000 should be entered as 10).) 31 CREATIVE SOUND SYSTEMS Statement of Cash Flows (partial) Cash flows from investing activities nces ols Net cash flows from investing activities 2$ 0.0 pse Hill dtv 14 FIC %23 24 & 2 3 5 6. 9 W E Y A S F G H K C V alt command command option V * 00 B
Prepare a statement of cash flows for December 31, 2015 using the indirect method. (Reconcile net income to net operating cash only for indirect method) No land was sold in 2018 cash was received through an issuance of bonds payable, 10,000. This cash was used later in 2018 to purchase land. A fixed asset was sold for $4,100. Fixed assets worth $12,200 were damaged in an accident in 2018. Insurance claims have been filed, but not paid as of 12/31/18. Total cash purchases of fixed assets $28,300. Cash dividends pain were $108,900 in 2018.
Write your explanation here on how to get your answer: The business was put up from a cash of ₱200,000, the initial capital of the owner. Then, ₱40,000 of the cash was used to purchase an equipment to be used in business. The purchase of equipment resulted in a liability of ₱20,000. How much are the total assets of the business? *
) If net income is $3,400 and owner withdrawals are $8,900, how much did the owner contribute (owner, capital)? Owner, Capital 5) If the owner contributes $16,200 and net income is $19,800, how much did the owner withdraw (owner, withdrawals)? Owner, Withdrawals 6) If the owner contributes $43,600 and the owner withdraws $1,900, how much is net income (loss)? Net Income (Loss)
XYZ Company bought land for $10,000 cash. What effect does this transaction have on the financial statements? Group of answer choices XYZ has a revenue of $10,000. XYZ has an expense of $10,000. XYZ decreases its assets by $10,000. No effect on total assets, liabilities, owners' equity, revenues or expenses.
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MIMI Indicate how each of the following transactions would affect Oriole Ltd's statement of income, statement of financial position, and statement of cash flows. If there would be no effect, then state that. b. C. a. b. b. Oriole sold a piece of equipment for $39,700. The equipment had originally cost $178,000 and had a carrying amount of $47.000 at the time it was sold. C. Oriole purchased a new piece of equipment to replace the equipment that had been sold. The new equipment had a cost of $224,000. Oriole recorded the annual depreciation on its equipment in the amount of $123,000. Increase in Net Income Ma Elfar Show Transcribed Text Statement of Income No Effect Increase in Net Income Statement of Income Decrease in Net Income Show Transcribed Text Statement of Financial Position $ V $ $ V $ $ $ $ Ć $ Statement of Cash Flows $ Statement of Financial Position $ Statement of Financial
A business has made a profit of £4,000 but its bank balance has fallen by £2,500. This could be due to A depreciation of £1,500 and an increase in stock of £5,000 B depreciation of £3,000 and the repayment of a loan of £3,500 C depreciation of £6,000 and the purchase of new fixed assets for £12,500 D the disposal of a fixed asset for £65,000 less than its book value
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