Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 12QS
Summary Introduction
Concept Introduction:
The statement of
To calculate:the cash inflow related to the sale of furniture.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Direction: Study the given data below and compute for (1) the cash generated/used in financing activities, (2) the net change in cash for the year, and (3) prepare the CFS for the year.
Learning is Fun Company has presented the following in order to aid the account in preparing CFS during the month.
Net income: P200, 000
Depreciation expense: P25, 000
Gain on sale on property and equipment: P100. 000
Decrease in trade and other receivables: P 70, 000
Purchase of property and equipment: P200, 000
Payment of loan from bank: P150, 000
Compute for the cash generated/used in financing activities.
Based on the given above, compute for the net change in cash for the year.
Refer to the financial statements of The Home Depot in Appendix A at the end of this book, ordownload the annual report from the Cases section in the Connect library.Required:1. Which of the two basic reporting approaches for the cash flows from operating activities didThe Home Depot use?a. Direct b. Indirect2. What amount of income tax payments did The Home Depot make during the year endedFebruary 2, 2014?a. $639 million c. $3,082 millionb. $2,839 million d. $12 million3. In the fiscal year ended February 2, 2014, The Home Depot generated $7,628 millionfrom operating activities. Indicate where this cash was spent by listing the two largest cashoutflows.a. Amortization ($1,757 million) and Capital Expenditures ($1,389 million)b. Share Repurchase ($8,546 million) and Capital Expenditures ($1,389 million)c. Amortization ($1,757 million) and Share Repurchase ($8,546 million)d. Dividends ($2,243 million) and Share Repurchase ($8,546 million)
Required information
Use the following information for the Quick Studies below. (Algo)
[The following information applies to the questions displayed below.]
Cash
Accounts receivable
Equipment, net
Land
Total assets
Percent change =
Compute the annual dollar changes and percent changes for each of the following items. (Decreases should be entered with a minus
sign. Round your percentage answers to one decimal place.)
Cash
Accounts receivable
Equipment, net
Land
Total assets
$
Current Year
$ 12,200
63,000
62,000
100,500
$ 237,700
$
Prior Year
$ 15,400
28,700
54,400
75,000
$ 173,500
Horizontal Analysis - Calculation of Percent Change
Numerator:
Current Year
Prior Year
12,200 $
15,400
63,000
28,700
62,000
54,400
100,500
75,000
237,700 $ 173,500
Denominator:
Dollar Change
Percent Change
%
%
%
%
%
Chapter 12 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 12 - What is the reporting purpose of the statement of...Ch. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Describe the direct method of reporting cash flows...Ch. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 13DQCh. 12 - Prob. 14DQCh. 12 - Prob. 15DQCh. 12 - Prob. 1QSCh. 12 - Prob. 2QSCh. 12 - Prob. 3QSCh. 12 - Prob. 4QSCh. 12 - Prob. 5QSCh. 12 - Prob. 6QSCh. 12 - Prob. 7QSCh. 12 - Prob. 8QSCh. 12 - Prob. 9QSCh. 12 - Prob. 10QSCh. 12 - Prob. 11QSCh. 12 - Prob. 12QSCh. 12 - Prob. 13QSCh. 12 - Refer to the data in QS 12-11. How much cash is...Ch. 12 - Prob. 15QSCh. 12 - Prob. 16QSCh. 12 - Prob. 17QSCh. 12 - Prob. 18QSCh. 12 - Prob. 19QSCh. 12 - Prob. 21QSCh. 12 - The following transactions and events occurred...Ch. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Prob. 19ECh. 12 - Prob. 1PSACh. 12 - Prob. 2PSACh. 12 - Prob. 3PSACh. 12 - Prob. 4PSACh. 12 - Prob. 5PSACh. 12 - Golden Corp., a merchandiser, recently completed...Ch. 12 - Prob. 7PSACh. 12 - Prob. 8PSACh. 12 - Prob. 1PSBCh. 12 - Prob. 2PSBCh. 12 - Prob. 3PSBCh. 12 - Prob. 4PSBCh. 12 - Prob. 5PSBCh. 12 - Prob. 6PSBCh. 12 - Prob. 7PSBCh. 12 - Prob. 8PSBCh. 12 - Prob. 12SPCh. 12 - Prob. 1FSACh. 12 - Prob. 2FSACh. 12 - Prob. 3FSACh. 12 - Prob. 1BTNCh. 12 - Prob. 2BTNCh. 12 - Prob. 4BTNCh. 12 - Prob. 6BTN
Knowledge Booster
Similar questions
- Furniture costing $74,800 is sold at its book value in 2021. Acquisitions of furniture total $60,300 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture.arrow_forwardMBA Company had the following income statement in 2019: depreciation OMR20000, net income OMR90000.The The following accounts increased during 2019: Accounts receivable OMR22000, Account payableOMR3400, inventoriesOMR46000.Cash from operating activities is:arrow_forwardHampton Industries had $48,000 in cash at year-end 2018 and $15,000 in cash at year-end 2019. The firm invested in property, plant, and equipment totaling $180,000 the majority having a useful life greater than 20 years and falling under the alternative depreciation system. Cash flow from financing activities totaled +$110,000. Round your answers to the nearest dollar, if necessary. a. What was the cash flow from operating activities? Cash outflow, if any, should be indicated by a minus sign. $ b. If accruals increased by $15,000, receivables and inventories increased by $80,000, and depreciation and amortization totaled $23,000, what was the firm's net income? +A $arrow_forward
- Determining Cash Flows from Investing Activities Burns Companys 2019 and 2018 balance sheets presented the following data for equipment: During 2019, equipment costing $41,000 with accumulated depreciation of $36,700 was sold for cash, producing a $3,200 gain. Required: 1. Calculate the amount of depreciation expense for 2019. 2. Calculate the amount of cash spent for equipment during 2019. 3. Calculate the amount that should be included as a cash inflow from the disposal of equipment.arrow_forwardConsider the following balance sheets and income statement for Cruyff Enterprises, and compute the cash that Cruyff received from customers. Cruyff Enterprises Balance Sheets As of December 31, 2020 and 2019 2020 2019 Assets: Cash $18,650 $ 14,900 Accounts Receivable 42,000 36,000 Inventory 60,500 50,000 Prepaid Rent 3,000 1,400 Property, Plant and Equipment 230,000 205,600 Less: Accumulated Depreciation (75,000) (65,000) Total Assets $279,150 $242,900 Liabilities and Stockholders’ Equity: Accounts Payable $26,500 $21,000 Interest Payable 650 400 Unearned Revenue 7,000 10,000 Bonds Payable 37,000 37,000 Common Stock 20,000 15,000 Additional Paid-In Capital 48,000 40,000 Retained Earnings 140,000 119,500 Total Liabilities and…arrow_forwardThe financial information below presents operating revenue and expenses for 2020 as well as the starting and ending balances for relevant asset and liability accounts that changed during the year: Prepare the Operating section of the Cash Flow Statement using the direct approach. Sales revenue $909,272 Depreciation expense $3,206 Cost of goods sold 445,563 Selling, general and administrative expenses 91,316 Interest expense 12,402 Income tax expense 143,126 Accounts receivable 12/31/19 65,305 Accounts receivable 12/31/20 67,810 Accounts payable 12/31/19 16,540 Accounts payable 12/31/20 17,261 Prepaid expenses 12/31/19 4,107 Prepaid expenses 12/31/20 3,875 Inventory 12/31/19 7,852 Inventory 12/31/20 6,491arrow_forward
- Fearless Flying Squirrels Company collected the following data in its accounting records in 2022: From the income statement: Depreciation expense $1,100 Loss on sale of equipment 3,100 From the comparative balance sheet: Beginning balance, equipment $12,500 Ending balance, equipment 7,900 Beginning balance, accumulated depreciation 1,900 Ending balance, accumulated depreciation 2,300 No new equipment was purchased during the year. Required: What was the cash in-flow from the sale of equipment in 2022?arrow_forwardDepreciation OMR 12000 Net Profit OMR 148000 The following accounts decreased during 2020: Accounts receivable OMR 20000 Inventory OMR18000 Rent payable OMR17000 Machinery OMR 25000 The following accounts increased during 2020: Notes receivable OMR 15000 Account payable OMR 18000 Bonds payable OMR 20000 What is the net cash flows from operating activities?arrow_forwardGiven the following excerpt from the Statement of Cash Flows under Operating Activities, how much of the following accounts have changed during 2021 due to operating activities? (in millions; Your answers may be positive or negative. Put a positive number for the increase and a negative number for the decrease. Use a minus (-) sign to indicate a negative number.) Cash flow from changes in current assets and liabilities, excluding the effects of divestitures: Receivables 27.9 Inventories (354.7) Prepaid expenses and other current assets Accounts payable (42.7) 343.1 Other current liabilities Changes in current assets and liabilities (129.5) (155.9) Account Amount ($) Change in Accounts receivable 2$ Change in Inventories 24 Change in Accounts payable 24arrow_forward
- Khareef Salalah Company reported the following information for the year 2020: Net income RO 24,600; Payment on non-current notes payable RO 30,000; Depreciation expense RO 24,000; Gain on sale of building RO 15,0003; Increase in inventory RO 4,100%; Increase in accounts payable RO 12,300. Based on the above information what will be the net cash flow provided (used) by operating activities? O a. None of the options are correct. O b. RO 11,800. Oc. RO 80,000. O d. RO 41,800. O e. RO 50,000. CLEAR MY CHOICEarrow_forwardDepreciation OMR 12000 Net Profit OMR 148000 The folowing accounts decreased during 2020: Accounts receivable OMR 20000 Inventory OMR18000 Rent payable OMR17000 Machinery OMR 25000 The following accounts increased during 2020: Notes receivable OMR 15000 Account payable OMR 18000 Bonds payable OMR 20000 What is the net cash flows from operating activities?arrow_forwardUsing the financial statements and notes provided below, prepare a cash flow analysis for the Penelope Company for 2019. Penelope Company Income Statement For the Year Ended December 31, 2019 Revenues $2,467,000 Cost of Goods Sold 1,285,000 Gross Margin 1,182,000 Operating Expenses: Selling Expenses 230,000 Administrative Expenses 94,000 Depreciation 15,000 Total Operating Expenses 339,000 Operating Income 843,000 Other Items: Loss on Sale of Patent (11,000) Interest Expense (42,000) Other Items (53,000) Net Income Before Taxes 790,000 Taxes 316,000…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning