Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Chapter 13, Problem 1E
To determine
Operating
Investing Cash Flow: Investing Cash Flow is the one where there is change in the capital structure of a company.
Determine whether the below mentioned transactions can be classified into Operating, Financial or Investing activities. Put an X mark under each column in the format as provided in the question.
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Applying Financial Statement Linkages to Understand TransactionsConsider the effects of the independent transactions, a through g, on a company's balance sheet, income statement, and statement of cash flows. Complete the table below to explain the effects and financial statement linkages. Refer to Exhibit 2.10 as a guide for the linkages.a. Owners invested cash in the company in exchange for shares of common stock.b. The company received cash from the bank for a loan.c. The company purchased equipment to manufacture goods for sale and paid with cash.d. The company manufactured a custom piece of inventory and paid cash for materials and labor. The company sold the inventory for more than cost, and the customer promised to pay for the inventory in 30 days.e. The company paid monthly rent for a manufacturing space.f. The company paid cash dividends to the owners.g. The company received cash from the customer in transaction d.To indicate the account increases (+), enter "1" in the answer…
Select the financial statement to which the item belongs.
Items
a. The change in retained earnings due to net income and dividends.
b. Amount of cash received from borrowing money from a local bank.
c. Revenue from sales to customers during the year.
d. Total amounts owed to workers at the end of the year.
Financial Statements
Classifying Transactions
Below are certain events that took place at Hazzard, Inc., last year:
a. Collected cash from customers.
b. Paid cash to repurchase its own stock.
c. Borrowed money from a creditor.
d. Paid suppliers for inventory purchases.
e. Repaid the principal amount of a debt.
f. Paid interest to lenders.
g. Paid a cash dividend to stockholders.
h. Sold common stock.
i. Loaned money to another entity.
j. Paid taxes to the government.
k. Paid wages and salaries to employees.
I. Purchased equipment with cash.
m. Paid bills to insurers and utility providers.
Required:
Prepare an answer sheet with the following headings:
Enter the cash inflows and outflows above on your answer sheet and indicate how each of them would be classified on a statement of cash flows. Place an X in the Operating. Investing, or Financing column as appropriate.
Chapter 13 Solutions
Introduction To Managerial Accounting
Ch. 13.A - Prob. 1ECh. 13.A - Prob. 2ECh. 13.A - Prob. 3ECh. 13.A - Prob. 4ECh. 13.A - Prob. 5PCh. 13.A - Prob. 6PCh. 13.A - Prob. 7PCh. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - Prob. 3Q
Ch. 13 - What general guidelines can you provide for...Ch. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - Prob. 8QCh. 13 - A business executive once stated, “Depreciation is...Ch. 13 - If the Accounts Receivable balance increases...Ch. 13 - Would a sale of equipment for cash be considered a...Ch. 13 - Prob. 12QCh. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Prob. 2F15Ch. 13 - Prob. 3F15Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Prob. 5F15Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Prob. 8F15Ch. 13 - Prob. 9F15Ch. 13 - Prob. 10F15Ch. 13 - Prob. 11F15Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Prob. 14F15Ch. 13 - Prob. 15F15Ch. 13 - Prob. 1ECh. 13 - Net Cash Provided by Operating Activities For the...Ch. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Net Cash Provided by Operating Activities Changes...Ch. 13 - Prepare a Statement of Cash Flows; Free Cash Flow...Ch. 13 - Prob. 7PCh. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Prepare a Statement of Cash Flows; Free Cash...Ch. 13 - Prob. 11PCh. 13 - Prepare a Statement of Cash Flows A comparative...Ch. 13 - Prob. 13PCh. 13 - Prob. 14P
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