Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Chapter 21, Problem 21.12BE
To determine
Statement of
To Determine: The amount Company SA should report as net cash from operating activities, if it is following the indirect method.
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PB6. LO 16.3 Use the following excerpts from Kayak Company's financial information to prepare the operating section of the
statement of cash flows (indirect method) for the year 2018.
2018 Income
Statement
Balance Sheets
$ 777,000
(555,000)
(22,000)
(44,000)
(11,000)
145,000
Sales
Cost of Goods Sold
Operating Expenses, other than depreciation expense
Depreciation Expense
Loss on Sale of Plant Assets
Net Income
Accounts Receivable
Inventory
Accounts Payable
Accrued Liabilities
Dec. 31, 2018
$63,300
2,400
35,000
2,100
Dec. 31, 2017
$63,000
2,800
37,400
2,650
Accounts Receivable
Inventory
Accounts Payable
Accrued Liabilities
PA9. LO 16.4 Use the following excerpts from Yardley Company's financial information to prepare a stateme
of cash flows (indirect method) for the year 2018.
Balance
Sheets
2018 Income
Statement
Sales
Cost of Goods Sold
Operating Expenses, other than depreciation expense
Depreciation Expense
Gain on Sale of Plant Assets
$ 455,000
(221,500)
(58,600)
(24,000)
23,500
174,400
Net Income
Dec. 31, 2018
$321,450
39,750
33,000
17,550
3,500
Cash
Accounts Receivable
Inventory
Accounts Payable
Accrued Liabilities
Dec. 31, 2017
$133,500
36,500
35,000
19,550
Cash
Accounts Receivable
Inventory
Accounts Payable
Accrued Liabilities
2,200
Additional information:
Plant assets were sold for $40,000; book value $16,500
Dividends of $25,000 were declared and paid
EB4. LO 16.3 Use the following information from Hamlin Company’s financial statements to determine operating net cash flows (indirect method).
Net Income $113,750
Change in accumulated depreciation (no sale of depreciable assets this year) $9,800
Gain on sale of investments $11,400
Chapter 21 Solutions
Intermediate Accounting, 10 Ed
Ch. 21 - Effects of all cash flows affect the balances of...Ch. 21 - Prob. 21.2QCh. 21 - Prob. 21.3QCh. 21 - Prob. 21.4QCh. 21 - Prob. 21.5QCh. 21 - Prob. 21.6QCh. 21 - Prob. 21.7QCh. 21 - The sale of stock and the sale of bonds are...Ch. 21 - Does the statement of cash flows report only...Ch. 21 - Prob. 21.10Q
Ch. 21 - Perhaps the most noteworthy item reported on an...Ch. 21 - Prob. 21.12QCh. 21 - Given sales revenue of 200,000, how can it be...Ch. 21 - Prob. 21.14QCh. 21 - When determining the amount of cash paid for...Ch. 21 - Prob. 21.16QCh. 21 - When using the indirect method of determining net...Ch. 21 - Prob. 21.18QCh. 21 - Prob. 21.19QCh. 21 - Where can we find authoritative guidance for the...Ch. 21 - U.S. GAAP designates cash outflows for interest...Ch. 21 - Prob. 21.1BECh. 21 - Prob. 21.2BECh. 21 - Prob. 21.3BECh. 21 - Prob. 21.4BECh. 21 - Investing activities LO215 Carter Containers sold...Ch. 21 - Financing activities LO216 Refer to the situation...Ch. 21 - Prob. 21.11BECh. 21 - Prob. 21.12BECh. 21 - Classification of cash flows LO213 through LO216...Ch. 21 - Indirect method; reconciliation of net income to...Ch. 21 - Prob. 21.29ECh. 21 - Prob. 21.30ECh. 21 - Prob. 21.31ECh. 21 - Prob. 21.32ECh. 21 - Prob. 21.1PCh. 21 - Research Case 219 FASB codification; locate and...Ch. 21 - IFRS Case 2110 Statement of cash flows...
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- Q17: a) Acquisition of Assets for Cash, Master Corporation wants to buy certain fixed assets of Smith Corporation. However, Smith Corporation wants to dispose of its entire business. The balance sheet of Smith follows: ASSETS Cash $2,000 Accounts receivable 8,000 Inventories 20,000 Equipment 1 10,000 Equipment 2 20,000 Equipment 3 35,000 Building 90,000 Total assets $185,000 LIABILITIES AND STOCKHOLDERS' EQUITY Total liabilities $80,000 Total stockholders equity 105,000 Total liabilities and stockholders', equity $185,000 Master needs only equipment 1 and 2 and the building. The other assets excluding cash can be sold for $35,000, Smith wants $48,0X) for the entire business. It is anticipated that the after-tax cash inflows from the new equipment will he $30,000 a year for the next 8 years. The cost of capital is 12 percent. (1) What is the initial net cash outlay? (2) Should the acquisition be made?arrow_forwardDecrease in plant and equipment $ Decrease in deferred tax asset $ Increase in accounts receivable $ Net Loss $ 122,865 587,458 15,487 65,892 109,520 215,877 Increase in inventory $ Decrease in short-term debt $ Net cash from financing activities Net cash from investing activities Net cash from operating activitiesarrow_forwardPA7. LO 16.3 Analysis of Forest Company's accounts revealed the following activity for its Land account, with descriptions added for clarity of analysis. How would these two transactions be reported for cash flow purposes? Note the section of the statement of cash flow, if applicable, and if the transaction represents a |cash source, cash use, or noncash transaction. Land Account balance, beginning of year Purchase of land this year, for cash Purchase of land this year, with note payable Account balance, end of year $220,000 95,000 75,000 390,000arrow_forward
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