Statement of cash flows Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company. To prepare: The statement of cash flows using the direct method.

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Answer 1

Question

Chapter 13, Problem 13.8AP

(a)

To determine

Statement of cash flows

Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

To prepare: The statement of cash flows using the direct method.

(b)

To determine

Free cash flow: It describes the net cash provided from operating activities after making required adjustments for dividends and capital expenditures. In other words, it is the cash flow arrived after making payment for capital expenditures and dividend payments.

To determine: The amount of free cash flow.

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Statement of Cash Flows—Indirect Method The following balances are available for Chrisman Company: December 31 2017 2016 Cash $12,200 $15,300 Accounts receivable 30,500 22,900 Inventory 24,200 40,400 Prepaid rent 13,700 9,200 Land 114,400 114,400 Plant and equipment 610,000 457,500 Accumulated depreciation (99,100) (45,800) Totals $705,900 $613,900 Accounts payable $18,300 $15,300 Income taxes payable 4,600 7,600 Short-term notes payable 53,400 38,100 Bonds payable 114,000 153,000 Common stock 305,000 228,800 Retained earnings 210,600 171,100 Totals $705,900 $613,900 Bonds were retired during 2017 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. The depreciation expense for the year was $53,300. Net income was reported at $39,500. Required: 1. Prepare a statement of cash flows for 2017 using the indirect method in the Operating…

create a statement of cash flows with the given information: Scruggs, Inc. Balance Sheet December 31, 2017 2016 Cash $17,000 $12,000 Account receivable 60,000 40,000 Inventory 84,000 70,000 Prepaid expenses 6,000 4,000 Property, Plant & Equipment 250,000 210,000 Accumulated depreciation (60,000) (48,000) $357,000 $288,000 Accounts payable $35,000 $40,000 Interest payable 3,000 4,000 Income taxes payable 22,000 12,000 Bonds payable (due in 2020) 90,000 64,000 Common Stock $5 par 95,000 80,000 Retained Earnings 112,000 88,000 $357,000 $288,000…

Statement of Cash Flows—Indirect Method The following balances are available for Chrisman Company: December 31 2017 2016 Cash $14,400 $18,000 Accounts receivable 36,000 27,000 Inventory 28,600 47,800 Prepaid rent 16,200 10,800 Land 135,000 135,000 Plant and equipment 720,000 540,000 Accumulated depreciation (117,000) (54,000) Totals $833,200 $724,600 Accounts payable $21,600 $18,000 Income taxes payable 5,400 9,000 Short-term notes payable 63,000 45,000 Bonds payable 135,000 180,000 Common stock 360,000 270,000 Retained earnings 248,200 202,600 Totals $833,200 $724,600 Bonds were retired during 2017 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. Depreciation expense for the year was $63,000. Net income was reported at $45,600. Required: 1. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities…

Answer 2

Question

Chapter 13, Problem 13.8AP

(a)

To determine

Statement of cash flows

Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

To prepare: The statement of cash flows using the direct method.

(b)

To determine

Free cash flow: It describes the net cash provided from operating activities after making required adjustments for dividends and capital expenditures. In other words, it is the cash flow arrived after making payment for capital expenditures and dividend payments.

To determine: The amount of free cash flow.

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Answer 3

Question

Chapter 13, Problem 13.8AP

(a)

To determine

Statement of cash flows

Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

To prepare: The statement of cash flows using the direct method.

(b)

To determine

Free cash flow: It describes the net cash provided from operating activities after making required adjustments for dividends and capital expenditures. In other words, it is the cash flow arrived after making payment for capital expenditures and dividend payments.

To determine: The amount of free cash flow.

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Answer 4

Question

Chapter 13, Problem 13.8AP

(a)

To determine

Statement of cash flows

Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

To prepare: The statement of cash flows using the direct method.

(b)

To determine

Free cash flow: It describes the net cash provided from operating activities after making required adjustments for dividends and capital expenditures. In other words, it is the cash flow arrived after making payment for capital expenditures and dividend payments.

To determine: The amount of free cash flow.

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Answer 5

Chapter 13, Problem 13.8AP

(a)

To determine

Statement of cash flows

Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

To prepare: The statement of cash flows using the direct method.

(b)

To determine

Free cash flow: It describes the net cash provided from operating activities after making required adjustments for dividends and capital expenditures. In other words, it is the cash flow arrived after making payment for capital expenditures and dividend payments.

To determine: The amount of free cash flow.

Answer 6

Chapter 13, Problem 13.8AP

(a)

To determine

Statement of cash flows

Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

To prepare: The statement of cash flows using the direct method.

Answer 7

Chapter 13, Problem 13.8AP

(a)

To determine

Statement of cash flows

Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

To prepare: The statement of cash flows using the direct method.

Answer 8

(b)

To determine

Free cash flow: It describes the net cash provided from operating activities after making required adjustments for dividends and capital expenditures. In other words, it is the cash flow arrived after making payment for capital expenditures and dividend payments.

To determine: The amount of free cash flow.

Answer 9

(b)

To determine

Free cash flow: It describes the net cash provided from operating activities after making required adjustments for dividends and capital expenditures. In other words, it is the cash flow arrived after making payment for capital expenditures and dividend payments.

To determine: The amount of free cash flow.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 13 - (a) What is a statement of cash flows? (b) Mark...Ch. 13 - Prob. 2Q Ch. 13 - Prob. 3Q Ch. 13 - Prob. 4Q Ch. 13 - Prob. 5Q Ch. 13 - Prob. 6Q Ch. 13 - Prob. 7Q Ch. 13 - Contrast the advantages and disadvantages of the...Ch. 13 - Prob. 9Q Ch. 13 - Prob. 10Q

Solution Summary: The author explains how to prepare the statement of cash flows using the direct method.

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Chapter 13 Solutions