FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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3.2 - Articulation of the Statement of
3.8 - Computing Cash Collections from Customers. Caterpillar manufactures heavy machinery and equipment and provides financing for purchases by its customers. Caterpillar reported sales and interest revenues of $51,324 million for Year 1. The balance sheet showed current and noncurrent receivables of $15,752 million at the beginning of Year 1 and $18,448 million at the end of Year 1. Compute the amount of cash collected from customers during Year 1.
3.9. Computing Cash Payments to Suppliers. Lowe’s companies, a retailer of home improvement products, reported cost of goods sold of $31,729 million for Year 1. Its ported merchandise inventories of $7,611 million at the beginning of Year 1 and $8,209 million at the end of Year 1. It reported accounts payable to suppliers of $3,713 million at the beginning of Year 1 and $4,109 million at the end of Year 1. Compute the amount of cash paid to merchandise suppliers during Year 1.
Refer to the Sunbeam Corporation Statement of Cash Flows (Exhibit 3.23 on page 205) and review the change in one item for each of the key parts of the statement (Operations, Investing, Financing). Very briefly explain what may have occurred in one items from each of the key activities (Operating, Investing, and Financing) during Year 7.
For instance:
Operations / Increase (Decrease) in accounts payable- $(1.6)
Sunbeam paid off some outstanding obligation other than short term debt. For instance, it may have paid some outstanding utility bill.
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- Hought Office Machines, Inc.'s accountants assembled the following selected data for the year ended December 31, 2018: E (Click the icon to view the current accounts.) E (Click the icon to view the transaction data.) Requirement 1. Prepare Hought Office Machines, Inc.'s statement of cash flows using the indirect method to report operating activities. List noncash investing and financing activities on an accompanying schedule. Complete the statement one section at a time, beginning with the cash flows from operating activities. (Use parentheses or a minus sign for numbers to be subtracted.) Hought Office Machines, Inc. Data Table Statement of Cash Flows Year Ended December 31, 2018 Cash flows from operating activities: Transaction Data for 2018: Net income Net income..... $ 60,000 Adjustments to reconcile net income to net cash Purchase of treasury stock. 14,300 provided by (used for) operating activities: Issuance of common stock for cash. 36,600 Loss on sale of equipment. 6,000…arrow_forward(1) Use the information below to compute the days in the cash conversion cycle for each company. (2) Which company is more effective at managing cash based on this measure? Days' sales in accounts receivable Days' sales in inventory Days' payable outstanding Required 1 Required 2 Sparta Company 36 22 29 Complete this question by entering your answers in the tabs below. Cash conversion cycle Athens Company 49 26 34 Use the information below to compute the number of days in the cash conversion cycle for each company. Sparta Athens Company Companyarrow_forwardPrepare Morganson's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities. P16-34A Preparing the statement of cash flows-indire ct method with The 2018 income statement and comparative balance shect of Rolling Hills, Inc. non-cash transactions follow ROLLING HILLS, INC. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 440,000 Cost of Goods Sold 209,200 Gross Profit 230,800 Operating Expenses: Salaries Expense $ 77,400 Depreciation Expense-Plant Assets 14,400 Other Operating Expenses 10,200 Total Operating Expenses 102,000 Operating Income 128,800 Other Income and (Expenses): Interest Revenue 8,700 Interest Expense (21,100) Total Other Income and (Expenses) (12,400) Net Income Before Income Taxes 116,400 Income Tax Expense 20,000 $ 96,400 Net Incomearrow_forward
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