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.A, Problem 7P
To determine
Income Statement: The statement in which the profit or the loss of a company is mentioned is called the income statement. In the income statement particulars such as revenues, expenses, net income and profit or loss are mentioned. It is also a statement which gives us the effect of expenses and profit in a stipulated time period.
Determine the income statement on the cash basis and cash flow statement of Joyner Company. Explain the reason for a sharp decline of the cash.
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Cash Flow RatiosSpencer Company reports the following amounts in its annual financial statements:
Cash flow from operating activities
$90,000
Capital expenditures
$59,500*
Cash flow from investing activities
(68,000)
Average current assets
136,000
Cash flow from financing activities
(8,500)
Average current liabilities
102,000
Net income
42,500
Total assets
255,000
* This amount is a cash outflowa. Compute Spencer's free cash flow.b. Compute Spencer's operating-cash-flow-to-current-liabilities ratio.c. Compute Spencer's operating-cash-flow-to-capital-expenditures ratio.
Round ratios to two decimal points.
a. Free cash flow
Answer
b. Operating-cash-flow-to-current-liabilities ratio
Answer
c. Operating-cash-flow-to-current-expenditures ratio
Answer
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The Grading Company's cash account decreased by $12,000. Cash increase from operations was $21,000.
Net cash decrease from investments was $23,000. Based on this information, calculate the cash increase
(or decrease) from financing.
Do not enter dollar signs or commas in the input boxes.
Use the negative sign for a decrease in cash.
Increase or decrease in cash from financing activities = $
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hi, just an fyi your answers to this question are both wrong.
here is the correct solution
Apex Company prepared the statement of cash flows for the current year that is shown below:
Apex CompanyStatement of Cash Flows—Indirect Method
Operating activities:
Net income
$
40,000
Adjustments to convert net income to cash basis:
Depreciation
$
22,000
Increase in accounts receivable
(60,000
)
Increase in inventory
(25,000
)
Decrease in prepaid expenses
9,000
Increase in accounts payable
55,000
Decrease in accrued liabilities
(12,000
)
Increase in income taxes payable
5,000
(6,000
)
Net cash provided by (used in) operating activities
34,000
Investing activities:
Proceeds from the sale of equipment
14,000
Loan to Thomas Company
(40,000
)
Additions to plant and equipment
(110,000
)
Net cash provided by (used in)…
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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