Managerial Accounting
17th Edition
ISBN: 9781260247787
Author: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Publisher: RENT MCG
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Textbook Question
Chapter 15, Problem 7F15
Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of
During the year Ravenna paid a $6,000 cash dividend and it sold a piece of equipment for $3,000 that had originally cost $6,000 and had accumulated depreciation of $4,000. The company did not retire any bonds or repurchase any of its own common stock during the year.
Required:
7. What is the combined amount and direction (+ or -) of the inventory and accounts payable adjustments to net income in the operating activities section of the statement of cash flows? What does this amount represent?
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The company did not dispose of any property, plant, and equipment during the year. Its net income for the year was $4,600 and its
cash dividends were $4,000. The company did not issue any bonds-payable or purchase any of its own common stock during the
year. Its net cash provided by (used in) operating activities and net cash provided by (used in) financing activities are:
Burgess also provided the following information:
The company sold equipment that had an original cost of $13 million and accumulated depreciation of $8 million. The cash proceeds from the sale were $8 million. The gain on the sale was $3 million.
The company did not issue any new bonds during the year.
The company paid a cash dividend during the year.
The company did not complete any common stock transactions during the year.
Required:
1. Using the indirect method, prepare a statement of cash flows for the year. (Enter your answers in millions not in dollars. List any deduction in cash and cash outflows as negative amounts.)
Comparative financial statements for Weaver Company follow:
During this year, Weaver sold some equipment for $10 that had cost $49 and on which there wasaccumulated depreciation of $30. In addition, the company sold long-term investments for $50 thathad cost $38 when purchased several years ago. Weaver paid a cash dividend this year and thecompany repurchased $109 of its own stock. This year Weaver did not retire any bonds.
Required:1. Using the direct method, adjust the company’s income statement for this year to a cash basis.2. Using the information obtained in (1) above, along with an analysis of the remaining balance sheetaccounts, prepare a statement of cash flows for this year.
Chapter 15 Solutions
Managerial Accounting
Ch. 15.A - Prob. 1ECh. 15.A - EXERCISE 14A-2 Net Cash Provided by Operating...Ch. 15.A - Prob. 3ECh. 15.A - Prob. 4ECh. 15.A -
PROBLEM 14A-5 Prepare and Interpret a Statement...Ch. 15.A - Prob. 6PCh. 15.A - PROBLEM 14A-7 Prepare and Interpret a Statement of...Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3Q
Ch. 15 - Prob. 4QCh. 15 - Prob. 5QCh. 15 - Prob. 6QCh. 15 - Prob. 7QCh. 15 - Prob. 8QCh. 15 - Prob. 9QCh. 15 -
14-10 If the Accounts Receivable balance...Ch. 15 - Prob. 11QCh. 15 - Prob. 12QCh. 15 - Prob. 1F15Ch. 15 - Ravenna Company is a merchandiser that uses the...Ch. 15 - Prob. 3F15Ch. 15 - Prob. 4F15Ch. 15 - Prob. 5F15Ch. 15 - Prob. 6F15Ch. 15 - Ravenna Company is a merchandiser that uses the...Ch. 15 - Prob. 8F15Ch. 15 - Prob. 9F15Ch. 15 - Prob. 10F15Ch. 15 - Prob. 11F15Ch. 15 - Prob. 12F15Ch. 15 - Prob. 13F15Ch. 15 - Prob. 14F15Ch. 15 - Prob. 15F15Ch. 15 - Prob. 1ECh. 15 - EXERCISE 14-2 Net Cash Provided by Operating...Ch. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Prob. 5ECh. 15 - Prob. 6ECh. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Prob. 9PCh. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14P
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