What appears to drive the operating cash flows of Yahoo?Yahoo! Engages in purchases and sales of marketable securities. Why do you believe Yahoo! pursue this activity?Yahoo! reports $33.21 million of deferred revenue. Based on your understanding of Yahoo!’s operation, what do you believe this amount represents? The statement of cash flows for Yahoo! are as follows:Yahoo! Inc.Consolidated Statements of cash flowYear ended December 31,($ thousand)Year 8Year 7Year 6($)($)($)Cash flow from operating activitiesNet income(loss)25,588(25,520)6,472Adjustment to reconcile net income (loss) to netcashprovided by (used in) operating activitiesDepreciation and amortizationTax benefit from stock options10,2152,73763917,827Non-cash charges related to stock option grantsand warrant issuances9261,676197Minority interest in operation of consolidatedsubsidiaries(68)(727)(540)Purchased in process research and developmentOther on cash chargeChanges in assets and liabilitiesAccount receivables, net17,30021,2455,9634,269(386)(13,616)Prepaid expensesAccount payable2,144(6,110)5152,4251,386Accrued expenses and other current liabilitiesdeferred revenue4,3931,66516,6887,40433,2102,983Due to related parties(451)110,278330948Net cash provided by (used in) operating system480(2,394) Cash flow from investing activitiesAcquisition of property and equipment(11,911)(6,722)(3,442)cash acquired in acquisitionsPurchase of marketable securitiesProceeds from sales and maturities of marketable199(471,135)(58,753)86,678(115,247)158,35043,240securities(729)(76,178)Others investment(5,445)(329,942)(1,649)19,554Net cash provided by (used in) investing activitiesCash flow from financing activitiesProceeds from issuance of common stock, net280,6797,51642,48463,750Proceeds from issuance of convertible preferredstockProceeds from minority investors6009991,050Other1,106128281,279Net cash provided by financing activitiesEffect of exchange rate changes on cash andcash equivalentNet change in cash and cash equivalentscash and cash equivalents at beginning of yearcash and cash equivalents at end of year9,621107,156288(380)(63)61,90329,27528,52134,29663,57163,5715,775125,47434,296

Cash flow statement is a financial statement that shows how changes in balance sheet accounts and…

What appears to drive the operating cash flows of Yahoo? Yahoo! Engages in purchases and sales of marketable securities. Why do you believe Yahoo! pursue this activity? Yahoo! reports $33.21 million of deferred revenue. Based on your understanding of Yahoo!’s operation, what do you believe this amount represents?

What appears to drive the operating cash flows of Yahoo? Yahoo! Engages in purchases and sales of marketable securities. Why do you believe Yahoo! pursue this activity? Yahoo! reports $33.21 million of deferred revenue. Based on your understanding of Yahoo!’s operation, what do you believe this amount represents?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 15E

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The following information is available from the current period financial statements: Net income $106,740 Depreciation expense 37,256 Increase in accounts receivable 16,396 Decrease in accounts payable 24,416 The net cash flows from operating activities using the indirect method is Oa. $184,808 Ob. $77,504 Oc. $103,184 Od. $53,088
Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the following information: Income Statement for Current Year Service revenue Expenses Salaries Depreciation Amortization of copyrights Other expenses Net loss Partial Balance Sheet Accounts receivable Salaries payable Other accrued liabilities $ 42,000 8,200 220 10,200 Current Year $ 9,300 13,000 1,500 Cash flows from operating activities: RODRIGUEZ COMPANY Statement of Cash Flows (Partial) $ 53,000 60,620 $ (7,620) Prior Year $ 16,600 In addition, Rodriguez bought a small service machine for $7,000. Required: 1.Present the operating activities section of the statement of cash flows for Rodriguez Company using the indirect method. Note: List loss amount and cash outflows as negative amounts. 2,000 5,200
Fitz Company reports the following information. Use the indirect method to prepare the operating activi- ties section of its statement of cash flows for the year ended December 31. Selected Annual Income Statement Data Net income .. Depreciation expense Amortization expense.. Gain on sale of plant assets. Selected Year-End Balance Sheet Data $374,000 44,000 Accounts receivable decrease.. $17,100 Inventory decrease..... Prepaid expenses increase.. Accounts payable decrease Salaries payable increase.. 42,000 7,200 4,700 6,000 8,200 1,200
JSW Corp. reported net income on the income statement for the current year of $59,000. Depreciation recorded on fixed assets for the year was $24,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below. Prepare the cash flows from operating activities section of a statement of cash flows using the indirect method. End Beginning Cash $65,000 $ 70,000 Accounts receivable (net) 70,000 57,000 Inventories 86,000 102,000 Prepaid expenses 4,000 4,500 Accounts payable (merchandise creditors) 50,000 58,000 Cash dividends payable 4,500 6,500 Salaries payable 6,000 7,500 Statement of Cash Flows Cash Flows from Operating Activities: Net Income, per income statement $59,000 Add: Deduct:…
Cash Flows from (Used for) Operating Activities The income statement disclosed the following items for the year: Depreciation expense Gain on disposal of equipment Net income The changes in the current asset and liability accounts for the year are as follows: Accounts receivable Inventory Prepaid insurance Accounts payable Income taxes payable Dividends payable Increase (Decrease) $5,190 (2,950) (1,110) (3,520) 1,110 780 $33,300 19,440 225,100 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: 27 Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Net cash flows from operating activities b. Why is net cash flows from operating…
Cash flows from (used for) operating activities-indirect method The income statement disclosed the following items for the year: Depreciation expense Gain on disposal of equipment Net income The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) $8,960 (5,120) (1,920) (6,080) 1,410 2,200 Accounts receivable Inventory Prepaid insurance Accounts payable Income taxes payable Dividends payable $57,600 33,600 508,000 a. Prepare the "Cash flows from (used for) operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Line Item Description Cash flows from (used for) operating activities: ▾ Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: b. Why is net cash flows from operating…
Exercise 12-13 (Static) Indirect: Preparing statement of cash flows LO P2, P3 MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Current Year Prior Year $ 30,400 10,050 90,100 $ 30,550 12,150 70,150 Inventory Total current assets 130,550 112,850 Equipment Accumulated depreciation-Equipment 41,500 (15,300) 49,900 (22,500) Total assets $157,950 $ 139,050 Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common sLock, no par value Retained earnings $23,900 500 $ 25,400 600 24,400 26,000 110,000 23,550 100,000 13,050 Total liabilities and equity S 157,950 S 139,050 HONTGOMERY INCORPORATED Income 5tatementL For Current Year Ended December 31 $ 45,575 (18,950) 26,625 5,550 7,200 Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tLax expense 3,375 $ 10,500 Net income Additional Information on Current-Year Transactions a. No dividends are declared or…
Cash Flows from (Used for) Operating Activities The income statement disclosed the following items for the year: Depreciation expense Gain on disposal of equipment Net income The changes in the current asset and liability accounts for the year are as follows: Accounts receivable Inventory Prepaid insurance Accounts payable Income taxes payable Dividends payable Increase (Decrease) $5,700 (3,240) (1,220) (3,860) 1,220 850 $36,600 21,330 218,400 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Us minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
The Operating activities section of Filler-Up, Inc.’s Statement of Cash Flows for the year ended December 31, 20x2 and 20x1, includes the following items: (in $ millions) Fye 20x2 Fye 20x1 Cash flows from operating activities: Net earnings $359.7 $314.6 Depreciation 51.2 50.2 Change in accounts receivable; (increase) decrease (42.0) (43.4) Change in accounts payable; increase (decrease) 8.4 16.6 Net cash provided by operating activities $392.6 $329.3 Required Answer the following questions: Why does the company add back depreciation to compute net cash provided by operating activities? Is depreciation a source of cash? The company reports cash flows associated with accounts receivable. In 20x1, this item is a cash outflow of $43.4 million and in 20x2 this item is a cash outflow of $42.0 million. Explain why this item is on the statement. Did Filler-Up Inc.’s accounts payable increase or decrease during…