FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

Q: Which calculation
A: A pro forma balance sheet is similar to a historical balance sheet, but it represents…
Q: . What is the amount of gross cash outflows reported in the investing section of the company’s…
A: Solution: Gross cash outflows reported in the investing section of the company's statement of cash…
Q: What accounts on the balance sheet must be evaluated when completing the investing activities…
A:
Q: Short note on cash flows from investing activities.
A: Statement of cash flows:   This statement reports all the cash transactions which are responsible…
Q: How does a decrease in income taxes receivables on the balance sheet, impact cash flow?  What is the…
A: Step 1   The statement of cash flows is a statement that shows cash flows movements.
Q: How do youcalculate present and future value cash flows from various time periods using single and…
A: Capital budgeting tools are used to make a decision on how much capital should be invested in a…
Q: 1. What is the definition of a total cash received during the year? How it is important to the to…
A: Approach to Solving the Question:Define Each Concept: Let commence with the description of what each…
Q: What is the difference between the sources (in nows) and uses (out nows) of cash?
A: The question is based on the concept of cash flow statement and cash flow analysis for a particular…
Q: How do I calculate cash provided by operations?
A: Cash provided by the operations = Cash flow from operations = EBIT x (1 - Tax rate, T) + Non cash…
Q: describe the steps in the preparation of direct and indirect cash fl ow statements, includinghow…
A: Statement of cash flow is a financial statement that shows how changes in balance sheet accounts and…
Q: Short note on cash flows from financing activities.
A:
Q: Describe Cash outflows from investing activities that includes cash paid.
A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…
Q: What is the purpose of the statement of cash flows?
A: Introduction:   The internal cash flows the business encounters is not accounted for in the income…
Q: Prepare a statement of cash flows (direct method) for the year 2018. Use the minus sign to indicate…
A: Statement of cash flows: The statement of cash flows records all the sources and use of the cash in…
Q: How are cash inflows from dividends and interest and cash outflows for dividends andinterest…
A:
Q: Which of the following is an example of a fi nancing activity on the cash fl ow statement under US…
A: Cash flow from financing activities represents the cash inflows and outflows related to the capital…
Q: What types of transactions are reported in the non-cash investing and financing activities section…
A: Concept:
bartleby

Concept explainers

Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows fro…
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the …
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It…
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…
Topic Video
Question
100%

How does Accounts Receivable impact Declan's Designs 2022 Statement of Cash Flows?

Declan's Designs Balance Sheet Declan's Designs Income Statement ASSETS 12/31/2021 12/31/2022 For the Year Ending Current Assets 12/31/2022 Cash and Cash Equivalents Accounts Receivable, Net Merchandise Inventory Total Current Assets $90,000 97,000 400,000 587,000 $294,000 101,000 475,000 870,000 Sales Revenue $225,000 (16,000) 209,000 (22,000) 187,000 (12,000) (5,000) 170,000 (7,000) $163,000 CGS Gross Margin SG&A PPE, Net Goodwill, Net 62,000 600,000 $1,249,000 70,000 600,000 $1,540,000 Operating Income Interest Expense Total Assets Loss on Sale of PPE Pre-Tax Income Income Tax Expense LIABILITIES & SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable Interest Payable Dividends Payable Net Income 26,000 3,000 20,000 49,000 17,000 5,000 10,000 32,000 Additional Information regarding Declan's Designs' 12/31/22 financials: Total Current Liabilities Mortgage Payable Long-Term Bank Loan Total Liabilities PROPERTY, PLANT & EQUIPMENT PPE is shown net accumulated depreciation. Accumulated depreciation was $18,000 at the beginning of the year and $20,000 at the end of the year. Depreciation expense for the year was $3,000, which is included in SG&A. New PPE was bought during the year for $22,000 (in cash). 500,000 500,000 200,000 732,000 549,000 Shareholder's Equity Note: You may use the worksheet provided on the last page to help you prepare the Cash Flow Statement. Preferred Stock Common Stock Hint #1: The most recent year is not always in the left column. Additional Paid in Capital Retained Earnings Total Shareholder’s Equity 8,000 54,000 638,000 700,000 10,000 60,000 738,000 808,000 Hint #2: Evaluate changes in gross PPE separate from changes in accumulated depreciation. Recall gross PPE less accumulated depreciation equals net PPE. Hint #3: Never “plug" the annual change in gross PPE. Separately evaluate the increase in gross PPE (capital expenditures) from the annual decrease in gross PPE (sale of PPE). Total Liabilities &Shareholders’ Equity $1,249,000 $1,540,000 Hint #4: The total change in cash due to stock issuances/repurchases is the sum of the change in common stock (stated par value) and additional paid in capital (APIC). Hint #5: Dividends declared (the decrease in RE) is not the same as dividends paid (the decrease in dividends payable). To find dividends paid, set up your dividends payable account with the beginning and ending balances from the balance sheet. Increase dividends paid by the amount of dividends declared. Then plug for the decrease in dividends payable (which represents dividends paid).
expand button
Transcribed Image Text:Declan's Designs Balance Sheet Declan's Designs Income Statement ASSETS 12/31/2021 12/31/2022 For the Year Ending Current Assets 12/31/2022 Cash and Cash Equivalents Accounts Receivable, Net Merchandise Inventory Total Current Assets $90,000 97,000 400,000 587,000 $294,000 101,000 475,000 870,000 Sales Revenue $225,000 (16,000) 209,000 (22,000) 187,000 (12,000) (5,000) 170,000 (7,000) $163,000 CGS Gross Margin SG&A PPE, Net Goodwill, Net 62,000 600,000 $1,249,000 70,000 600,000 $1,540,000 Operating Income Interest Expense Total Assets Loss on Sale of PPE Pre-Tax Income Income Tax Expense LIABILITIES & SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable Interest Payable Dividends Payable Net Income 26,000 3,000 20,000 49,000 17,000 5,000 10,000 32,000 Additional Information regarding Declan's Designs' 12/31/22 financials: Total Current Liabilities Mortgage Payable Long-Term Bank Loan Total Liabilities PROPERTY, PLANT & EQUIPMENT PPE is shown net accumulated depreciation. Accumulated depreciation was $18,000 at the beginning of the year and $20,000 at the end of the year. Depreciation expense for the year was $3,000, which is included in SG&A. New PPE was bought during the year for $22,000 (in cash). 500,000 500,000 200,000 732,000 549,000 Shareholder's Equity Note: You may use the worksheet provided on the last page to help you prepare the Cash Flow Statement. Preferred Stock Common Stock Hint #1: The most recent year is not always in the left column. Additional Paid in Capital Retained Earnings Total Shareholder’s Equity 8,000 54,000 638,000 700,000 10,000 60,000 738,000 808,000 Hint #2: Evaluate changes in gross PPE separate from changes in accumulated depreciation. Recall gross PPE less accumulated depreciation equals net PPE. Hint #3: Never “plug" the annual change in gross PPE. Separately evaluate the increase in gross PPE (capital expenditures) from the annual decrease in gross PPE (sale of PPE). Total Liabilities &Shareholders’ Equity $1,249,000 $1,540,000 Hint #4: The total change in cash due to stock issuances/repurchases is the sum of the change in common stock (stated par value) and additional paid in capital (APIC). Hint #5: Dividends declared (the decrease in RE) is not the same as dividends paid (the decrease in dividends payable). To find dividends paid, set up your dividends payable account with the beginning and ending balances from the balance sheet. Increase dividends paid by the amount of dividends declared. Then plug for the decrease in dividends payable (which represents dividends paid).
Expert Solution
Check Mark
Step 1 Introduction

The cash flow statement is prepared to record the cash flow from various activities during the period including operating activities, investing activities and financing activities of the business. 

bartleby

Trending nowThis is a popular solution!

bartleby

Step by stepSolved in 2 steps

See solution
Check out a sample Q&A here
Blurred answer
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
SEE MORE TEXTBOOKS