Exercise 16-16BDirect: Computing
For each of the following separate cases, compute the required cash flow information.
Case X: Compute cash received from customers
Sales................................ $515,000
Accounts receivable. Ending balance..... 33,500
Case Y: Compute cash paid for rent
Rent expense......................... $139.3.00
Rent payable. Beginning balance......... 7.S00
Rent payable. Ending balance........... £.200
Case Z: Compute cash paid for inventory
Cost of goods sold.................. $525,000
Inventory, Beginning balance......... 15B.&00
Accounts payable, Beginning balance ... 56,700
Inventory, Ending balance............ 130,400
Accounts payable, Ending balance..... 32,000
Want to see the full answer?
Check out a sample textbook solutionChapter 16 Solutions
FUND.ACCT.PRIN.
- Chapter 16 Statement of Cash Flows 807 Problems: Series A PR 16-1A Statement of cash flows OBJ. 2, 3, 4, S Net cash flows from The comparative balance sbeet of lelesias Inc. for December 31, 20Y3 and 20Y, 15 shown eperating activities, $588,000 as follows: Dec. 31,20Y3 Dec. 31,20Y2 Assets SHOW ME HOW Cash... $ 186,000 $ 180,000 Accounts receivable (net). 540,000 480,000 Inventories... 924,000 900,000 Investments.... 120,000 Land.... 600,000 Equipment....... Accumulated depreciation-equipment......**** *. Total assets.... 1,680,000 1,440,000 (720,000) $3,210,000 (600,000) $2,520,000 Llabilities and Stockholders' Equity Accounts payable... 5 408,000 5 360,000 54,000 60,000 Accrued expenses payable...... Dividends payable...... Common stock, $4 par.... 36,000 30,000 840,000 720,000 240,000 210,000 Paid-in capital in excess of par.... 1,632,000 1,140,000 Retained earnings...... $3,210,000 $2.520,000 Total liabilities and stockholders' equity..... Additional data obtained from an…arrow_forwardEX. 16-2 Effect of Trasactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a.Retired $400,000 of bonds, on which there was $3,000 of unamortized discount, for $411,000.arrow_forwardCashbalance,beginning.....................P9 P ? P ? P? P?Add collectionsfromcustomers..... ? ? 125 ? 391Totalcash available................... 85 ? ? ? ?Less disbursements:Purchaseofinventory..................... 40 58 ? 32 ?Operatingexpenses............... ? 42 54 ? 180Equipmentpurchases................... 10 8 8 ? 36Dividends.......................... 2 2 2 2 ?Totaldisbursement.................... ? 110 ? ? ?Excess (deficiency) of cash availableOrdisbursements... ...................... (3) ? 30 ? ? Financing:Borrowings......................... ? 20 - - ?Repayments (including interest)*.. - - (?) (7) (?)Total financing......................... ? ? (?) (?) ?Cash balance, ending................... P ? P ? P ? P ? P ? *Interest will total P4, 000 for the year.arrow_forward
- 5 Required information Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Investment securities Machinery Land Year 2 $ 103,400 521,300 145, 100 Year 1 $ 114,400 425, 100 91,800 Other information drawn from the accounting records: 1. Delsey incurred a $1,330 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,130 (cost of $25,010 minus accumulated depreciation of $20,880) was sold. The income statement showed a gain on the sale of machinery of $4,980, 3. Delsey did not sell land during the year.arrow_forwardWeek 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 FCTarrow_forwardExercise 12-5A (Algo) Use the direct method to determine cash flows from operating activities LO 12-2 The following accounts and corresponding balances were drawn from Marinelli Company's Year 2 and Year 1 year-end balance sheets. Year 2 Year 1 $48,200 $39,600 Account Title Accounts receivable Interest receivable Other operating expenses payable Salaries payable The Year 2 income statement is shown next. Income Statement Sales Salary expense. Other operating expenses Operating income Nonoperating items: Interest revenue Net income 4,800 29,900 11,850 a. Cash inflows from operating activities b. Cash outflows from operating activities 6,850 20,900 16,150 $760,000. (169,500) (268,500) 322,000 23,500 $345,500 Required a. Use the direct method to compute the amount of cash inflows from operating activities. b. Use the direct method to compute the amount of cash outflows from operating activities.arrow_forward
- Accounting (Text Only)AccountingISBN:9781285743615Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning