Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Chapter 3, Problem 19PC
To determine
Explain the relation between net loss and cash flow from operations, investing, and financing activities.
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Students have asked these similar questions
1. Comment on why you think that the set of general-purpose financial statements comprises an income statement, statement of changes in equity, balance sheet and a statement of cash flows.\
2. In September 2016, JB Hi Fi purchased The Good Guys, a competing business, for $870m. Analyse the statements of cash flows above and explain any changes from 2016 to 2017 that you think may be attributable to this acquisition.
The consolidated balance sheets for Lloyd Lumber Company at the beginning and end of 2015 follow. The company bought $50 million worth of fixed assets. The charge for depreciation in 2015 was $10 million. Net income was $33 mil- lion, and the company paid out $5 million in dividends
a. Fill in the amount of the source or use in the appropriate column.
b. Prepare a statement of cash flows.
c.Briefly summarize your findings.
• The consolidated balance sheets for the Landon Lumber Company at the beginning and end
of 2009 follow. The company bought $50 million worth of fixed assets. The charge for
depreciation in 2009 was $10 million. Net income was $33 million, and the company paid
out $5 million in dividends.
a. Fill in the amount of the source or use in the appropriate column.
LANDON LUMBER COMPANY: BALANCE SHEET AT BEGINNING
AND END OF 2009 (Millions of Dollars)
Cash
Marketable Securities
Net Receivables
Inventories
Total current assets
Gross fixed assets
Less accumulated depreciation
Net fixed assets
Total assets
Accounts Payable
Notes Payable
Other Current Liabilities
Long-term debt
Common Stock
Retained Earnings
Total Liabilities and equity
Notes: Total sources must equal total uses.
b. Prepare a statement of cash flows
c. Briefly summarize your findings.
Jan. 1
$7
0
30
53
$ 90
S
Jan. 1
75
25
$50
$140
$ 18
3
15
8
29
67
$140
Dec. 31 Source
$ 15
11
3=2
22
75
$ 123
$ 15
Dec. 31 Source
125
35
$ 90
$213
1…
Chapter 3 Solutions
Financial Reporting, Financial Statement Analysis and Valuation
Ch. 3 - Need for a Statement of Cash Flows. The accrual...Ch. 3 - Articulation of the Statement of Cash Flows with...Ch. 3 - Classification of Interest Expense. Under U.S....Ch. 3 - Prob. 4QECh. 3 - Classification of Changes in Short-Term Financing....Ch. 3 - Classification of Cash Flows Related to...Ch. 3 - Treatment of Non-Cash Exchanges. The acquisition...Ch. 3 - Computing Cash Collections from Customers....Ch. 3 - Computing Cash Payments to Suppliers. Lowes...Ch. 3 - Computing Cash Payments for Income Taxes. Visa...
Ch. 3 - Interpreting the Relation between Net Income and...Ch. 3 - Interpreting the Relation between Net Income and...Ch. 3 - Interpreting Relations among Cash Flows from...Ch. 3 - Interpreting Relations among Cash Flows from...Ch. 3 - Interpreting the Statement of Cash Flows. The...Ch. 3 - Interpreting the Statement of Cash Flows. Texas...Ch. 3 - Interpreting the Statement of Cash Flows. Tesla...Ch. 3 - Interpreting the Statement of Cash Flows. Gap Inc....Ch. 3 - Prob. 19PCCh. 3 - Prob. 20PCCh. 3 - Interpreting the Statement of Cash Flows....Ch. 3 - Extracting Performance Trends from the Statement...Ch. 3 - Interpreting a Direct Method Statement of Cash...Ch. 3 - Prob. 24PCCh. 3 - Preparing a Statement of Cash Flows from Balance...Ch. 3 - Prob. 26PCCh. 3 - Preparing a Statement of Cash Flows from Balance...Ch. 3 - Prob. 1AICCh. 3 - Prob. 1BICCh. 3 - Prob. 1CICCh. 3 - Prob. 1DICCh. 3 - Prob. 1EICCh. 3 - Prob. 1FICCh. 3 - Prob. 1GICCh. 3 - Prob. 1HICCh. 3 - Prob. 2AICCh. 3 - Prob. 2BICCh. 3 - Prob. 2CICCh. 3 - Prob. 2DICCh. 3 - Prob. 2EICCh. 3 - Prob. 2FICCh. 3 - Prob. 3IC
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