Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 15, Problem 18E
A.
To determine
List the errors in the statement of
B.
To determine
Prepare a corrected statement of cash flows.
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Impact of Transactions Involving Receivables on Statement of Cash Flows
From the following list, identify whether the change in the account balance during the year would be added to or deducted from net income when the indirect method is used to determine cash flows from operating activities:
Transaction
Impact on Cash Flow Statement
Increase in accounts receivable
Decrease in accounts receivable
Increase in notes receivable
Decrease in notes receivable
Added to net income
Deducted from net income
No impact on net income
The income statement and the cash flows from operating activities section of the statement of cash flows are provided below for
Syntric Company. The merchandise inventory account balance neither increased nor decreased during the reporting period. Syntric
had no liability for insurance, deferred income taxes, or interest at any time during the period.
Sales
Cost of goods sold
Gross margin
Salaries expense
Insurance expense
Depreciation expense
Depletion expense
Interest expense
Gains and losses:
Gain on sale of equipment
Loss on sale of land
Income before tax
Income tax expense
SYNTRIC COMPANY
Income Statement
For the Year Ended December 31, 2024
($ in thousands)
Net income
Cash Flows from Operating Activities:
Cash received from customers
Cash paid to suppliers
Cash paid to employees
Cash paid for interest
Cash paid for insurance
Cash paid for income tax
Net cash flows from operating activities
$35.0
16.9
9.0
3.4
10.4
$ 271.7
(168.8)
102.9
(74.7)
19.0
(6.4)
40.8
(20.4)
$ 20.4
$225.0…
Exercise 7-16: From the following list, identify whether the change in the account balance during the year would be added to or deducted from net income when the indirect method is used to determine cash flows from operating activities:
Increase in accounts receivable
Decrease in accounts receivable
Increase in notes receivable
Decrease in notes receivable
Chapter 15 Solutions
Managerial Accounting
Ch. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Fully depreciated equipment costing 50,000 was...Ch. 15 - Prob. 9DQCh. 15 - Prob. 10DQ
Ch. 15 - Prob. 1BECh. 15 - Prob. 2BECh. 15 - Prob. 3BECh. 15 - Prob. 4BECh. 15 - Land transactions on the statement of cash flows...Ch. 15 - Prob. 6BECh. 15 - Prob. 7BECh. 15 - Prob. 8BECh. 15 - Prob. 9BECh. 15 - Prob. 1ECh. 15 - Effect of transactions on cash flows State the...Ch. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Cash flows from operating activitiesindirect...Ch. 15 - Prob. 6ECh. 15 - Prob. 7ECh. 15 - Reporting changes in equipment on statement of...Ch. 15 - Reporting changes in equipment on statement of...Ch. 15 - Prob. 10ECh. 15 - Prob. 11ECh. 15 - Prob. 12ECh. 15 - Prob. 13ECh. 15 - Prob. 14ECh. 15 - Prob. 15ECh. 15 - Prob. 16ECh. 15 - Statement of cash flowsindirect method The...Ch. 15 - Prob. 18ECh. 15 - Prob. 19ECh. 15 - Prob. 20ECh. 15 - Prob. 21ECh. 15 - Prob. 22ECh. 15 - Prob. 1PACh. 15 - Statement of cash flowsindirect method The...Ch. 15 - Prob. 3PACh. 15 - Prob. 4PACh. 15 - Statement of cash flowsdirect method applied to PR...Ch. 15 - Prob. 1PBCh. 15 - Prob. 2PBCh. 15 - Prob. 3PBCh. 15 - Statement of cash flowsdirect method The...Ch. 15 - Statement of cash flowsdirect method applied to PR...Ch. 15 - Prob. 1MADCh. 15 - Prob. 2MADCh. 15 - Prob. 3MADCh. 15 - Prob. 4MADCh. 15 - Prob. 5MADCh. 15 - Prob. 1TIFCh. 15 - Financial condition Tidewater Inc., a retailer,...Ch. 15 - Prob. 4TIF
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- Using the Exhibit below, assume that the balance of Accounts Receivable was $61,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Receivable is $62,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts receivable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on…arrow_forwardBelow is the ledger of XYZ Company Account Titles Accounts Receivable Accumulated depreciation - Buildings Accumulated depreciation - Furniture and Fixtures Accumulated depreciation - Manufacturing Equipments Allowance for Doubtful Accounts Bonds Payable Buildings Cash in Bank Cash on Hand Current portion of Long-term Notes Payable Finished goods Furnitures and Fixtures Income Taxes Payable Land Leasehold Improvements Long-term Notes Payable Manufacturing Equipments Money Market Fund Mortgage Payable Patents Amount 259,345.00 484,180.00 139,766.00 182.228.00 54,300.00 560,000.00 1,152,637.00 535,445.00 58,598.00 250,000.00 17,068.00 346,641.00 52,053.00 926,747.00 350,600.00 1,750,000.00 345,234.00 32,578.00 460,000.00 889,467.00arrow_forwardWhat is the IRR of the following set of cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Year 0123 Cash Flow -$ 16,100 6,800 8,100 6,600 IRR %arrow_forward
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