Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Question
Chapter 13, Problem 7BE
a.
To determine
Determine D’s
b.
To determine
Explain whether free cash flow has improved or declined from 20Y1 to 20Y2.
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Free cash flow
Dillin Inc. reported the following on the company's statement of cash flows in 20Y2 and 20Y1:
20Y2
20Y1
Net cash flow from operating activities
$476,200
$456,200
Net cash flow used for investing activities
(429,000)
(379,000)
Net cash flow used for financing activities
(41,000)
(57,000)
Eighty percent of the net cash flow used for investing activities was used for the purchase of property, plant, and equipment.
a. Determine Dillin's free cash flow for both years.
20Y2
20Y1
Free cash flow
$
b. Has Dillin's free cash flow improved or declined from 20Y1 to 20Y2?
Assume Cramer uses the direct method to prepare the statement of cash flows. Incometax payable was $6,500 at the end of the year, and $3,100 at the beginning of the year. Incometax expense for the year totaled $58,900. What amount of cash did the company pay for incometaxes during the year?a. $55,500b. $62,000c. $58,900d. $62,300
If the statement of cash flows shows the following, what is cash from operating activities?
Profit for the year $97,500
Depreciation 40,000
Adjustments in non-cash working capital accounts (11,000)
Chapter 13 Solutions
Financial And Managerial Accounting
Ch. 13 - What is the principal disadvantage of the direct...Ch. 13 - Prob. 2DQCh. 13 - A corporation issued 2,000,000 of common stock in...Ch. 13 - A retail business, using the accrual method of...Ch. 13 - Prob. 5DQCh. 13 - A long-term investment in bonds with a cost of...Ch. 13 - A corporation issued 2,000,000 of 20-year bonds...Ch. 13 - Fully depreciated equipment costing 50,000 was...Ch. 13 - Prob. 9DQCh. 13 - Name five common major classes of operating cash...
Ch. 13 - Classifying cash flows Identify whether each of...Ch. 13 - Prob. 2BECh. 13 - Prob. 3BECh. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Land transactions on the statement of cash flows...Ch. 13 - Common stock transactions on the statement of cash...Ch. 13 - Prob. 7BECh. 13 - Appendix 2 Cash received from customersdirect...Ch. 13 - Appendix 2 Cash payments for merchandisedirect...Ch. 13 - Prob. 1ECh. 13 - Effect of transactions on cash flows State the...Ch. 13 - Classifying cash flows Identify the type of cash...Ch. 13 - Prob. 4ECh. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Prob. 7ECh. 13 - Reporting changes in equipment on statement of...Ch. 13 - Reporting changes in equipment on statement of...Ch. 13 - Reporting land transactions on statement of cash...Ch. 13 - Determining cash payments to stockholders The...Ch. 13 - Prob. 12ECh. 13 - Reporting land acquisition for cash and mortgage...Ch. 13 - Reporting issuance and retirement of long-term...Ch. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsindirect method List the...Ch. 13 - Prob. 19ECh. 13 - Prob. 20ECh. 13 - Prob. 21ECh. 13 - Prob. 22ECh. 13 - Prob. 1PACh. 13 - Prob. 2PACh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsdirect method The...Ch. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Prob. 1PBCh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsdirect method The...Ch. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Analyze and compare Amazon.com, Best Buy, and...Ch. 13 - Analyze and compare Apple, Coca-Cola, and Verizon...Ch. 13 - Prob. 3MADCh. 13 - Prob. 4MADCh. 13 - Prob. 5MADCh. 13 - Ethics in Action Head Donuts Inc. is a retailer of...Ch. 13 - Prob. 3TIFCh. 13 - Using the statement of cash flows You are...
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- Free Cash Flow Burkhalter Inc. reported the following on the company's statement of cash flows in Year 2 and Year 1: Year 2 Year 1 Net cash flows from operating activities $385,000 $367,000 Net cash flows used for investing activities (293,000) (330,000) Net cash flows used for financing activities (83,000) (55,000) Seventy percent of the net cash flows used for investing activities was used to replace existing capacity. a. Determine Burkhalter's free cash flow for both years. Year 2 $fill in the blank 1 Year 1 $fill in the blank 2 b. Has Burkhalter's free cash flow improved or declined from Year 1 to Year 2?Improvedarrow_forwardCash Flows from Operating Activities-Direct Method The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following: a. If sales for the current year were $496,500 and accounts receivable decreased by $25,300 during the year, what was the amount of cash received from customers? b. If income tax expense for the current year was $53,200 and income tax payable decreased by $6,300 during the year, what was the amount of cash payments for income taxes? c. Briefly explain why the cash received from customers in part (a) is different from sales. Because the customers paid than the amount of sales for the period, cash received from customers sales made on account by $25,300 during the current year.arrow_forwardXYZ Corporation had the following cash flow information for the year: Cash inflows from operations: $200,000 Cash outflows for investments: $50,000 Cash outflows for financing activities: $100,000 Calculate the net cash flow for XYZ Corporation for the year.arrow_forward
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