Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 16, Problem 16.1DC
Decision Case 16-1
Theater by Design and Show Cinemas are asking you to recommend their stock to your clients. Because Theater by Design and Show Cinemas earn about the same net income and have similar financial positions, your decision depends on their statement of
| Theater by Design | Show Cinemas | |||
| Net Cash Provided by Operating Activities | $30,000 | $70,000 | ||
| Cash Provided by (Used for) Investing Activities: | ||||
| Purchase of Plant Assets | $ (20,000) | $(100,000) | ||
| Sale of Plant Assets | 40.000 | 20,000 | 10,000 | (90,000) |
| Cash Provided by (Used for) Financing Activities: | ||||
| Issuance of Common Stock | 0 | 30,000 | ||
| Payment of Long-term Debt | (40,000) | 0 | ||
| Net Increase (Decrease) in Cash | $ 10,000 | $10,000 | ||
Based on their cash flows, which company looks better? Give your reasons.
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Week 14 Discussion: Comparing the Primary Sources and Uses of Cash A+
The statement of Cash Flows is divided into three major sections: Operating, Investing, and Financing. Of the three, which do you think is most important and why?
Respond to at least two of your peers and identify a time or situation in which one of the other sections may prove to be more important or beneficial.
Initial posts due on Thursday b 11.50 FCT
Question 6
You are the finance manager of Adventure Tourist Ltd. The following data is available for the company as of 31 June 2021:
Current assets of $253,950
Current liabilities $178,700
Total assets $795,500
Equity $405,890
Required:
The company’s Management Board required you to evaluate the efficiency of daily cash flows in and out of business operating activities. What job are you doing to complete the task? (referring to one out of 3 important questions of corporate finance for your answer)
Calculate non-current assets, non-current liabilities and build a balance sheet for the company?
Calculate the return on assets (ROA) of the company given that return on equity (ROE) is 35%?
Adventure Tourist Ltd. has net credit sales of $1,476,000. Calculate the accounts receivable turnover of the company, given average accounts receivable is $128,500?
Which of the following is a section of a cash flow statement?
Select one:
a.Fixed costs outflows
b.Cash basis accounting systems
c.Wage taxes
d.EIN
Question 22
Question text
If you invest $1,525,000 in a business and earn a return of $775,000, what is your ROI?
Select one:
a.42%
b.45%
c.51%
d.1.96%
Question 23
Question text
If Jacques invests $20,000 at 10% interest for 3 years, what will the future value of the money be?
Select one:
a.$26,620.00
b.$6620.00
c.$20,606.02
d.$26,000.00
Question 24
Question text
Two common risks to cash flow stability are ________ and ________.
Select one:
a.credit squeeze; burn rate
b.surplus inventory; pilferage
c.burn rate; pilferage
d.surplus inventory; credit squeeze
Question 25
Question text
A suggested allowance for contingencies and emergencies at start-up is _____ of estimated start-up costs.
Select one:
a.5 percent
b.10 percent
c.25 percent
d.40 percent
Chapter 16 Solutions
Horngren's Accounting (12th Edition)
Ch. 16 - Prob. 1QCCh. 16 - Prob. 2QCCh. 16 - Prob. 3QCCh. 16 - Prob. 4QCCh. 16 - Prob. 5QCCh. 16 - The Plant Assets account and Accumulated...Ch. 16 - Mountain Water Corp issued common stock of $28,000...Ch. 16 - Prob. 8QCCh. 16 - Maxwell Furniture Center had accounts receivable...Ch. 16 - Prob. 10BQC
Ch. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - Prob. 3RQCh. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Prob. 6RQCh. 16 - Prob. 7RQCh. 16 - Prob. 8RQCh. 16 - Prob. 9RQCh. 16 - Prob. 10RQCh. 16 - Prob. 11RQCh. 16 - Prob. 12RQCh. 16 - Prob. 13RQCh. 16 - Prob. 14RQCh. 16 - Prob. 15ARQCh. 16 - Prob. 16BRQCh. 16 - Prob. S16.1SECh. 16 - S16-2 Classifying items on the statement of cash...Ch. 16 - Prob. S16.3SECh. 16 - Prob. S16.4SECh. 16 - Prob. S16.5SECh. 16 - Prob. S16.6SECh. 16 - Prob. S16.7SECh. 16 - Prob. S16.8SECh. 16 - Prob. S16.9SECh. 16 - Prob. S16.10SECh. 16 - Preparing a statement of cash flows using the...Ch. 16 - Prob. S16A.12SECh. 16 - Prob. S16A.13SECh. 16 - Prob. S16A.14SECh. 16 - Prob. S16B.15SECh. 16 - Prob. E16.16ECh. 16 - Prob. E16.17ECh. 16 - Classifying items on the indirect statement of...Ch. 16 - Prob. E16.19ECh. 16 - Prob. E16.20ECh. 16 - Preparing the statement of cash flows—indirect...Ch. 16 - Prob. E16.22ECh. 16 - E16-23 Computing the cash effect Learning...Ch. 16 - Preparing the statement of cash flows—indirect...Ch. 16 - Identifying and reporting non-cash transactions...Ch. 16 - Prob. E16.26ECh. 16 - Prob. E16A.27ECh. 16 - Prob. E16A.28ECh. 16 - Computing cash flow items—direct method Learning...Ch. 16 - Prob. E16A.30ECh. 16 - Prob. E16B.31ECh. 16 - Prob. P16.32APGACh. 16 - Prob. P16.33APGACh. 16 - Prob. P16.34APGACh. 16 - Prob. P16.35APGACh. 16 - Preparing the statement of cash flows—direct...Ch. 16 - Prob. P16A.37APGACh. 16 - Prob. P16B.38APGACh. 16 - Prob. P16.39BPGBCh. 16 - Prob. P16.40BPGBCh. 16 - Prob. P16.41BPGBCh. 16 - Prob. P16.42BPGBCh. 16 - Prob. P16A.43BPGBCh. 16 - Prob. P16A.44BPGBCh. 16 - Prob. P16B.45BPGBCh. 16 - Prob. P16.46CTCh. 16 - Prob. P16.47CPCh. 16 - Prob. 16.1TIATCCh. 16 - Decision Case 16-1 Theater by Design and Show...Ch. 16 - Ethical Issue 16-1 Moss Exports is having a bad...Ch. 16 - Prob. 16.1FSC
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