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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Textbook Question
Chapter 3, Problem 25PC
Preparing a Statement of Cash Flows from
REQUIRED
- a. Prepare a worksheet for the preparation of a statement of cash flows for Nojiri Pharmaceutical Industries for each of the years ending March 31, Year 2 to Year 4. Follow the format of Exhibit 3.14 in the text. Notes to the financial statements indicate the following:
- (1) The changes in Accumulated Other Comprehensive Income relate to revaluations of Investments in Securities to market value. The remaining changes in Investments in Securities result from purchases and sales. Assume that the sales occurred at no gain or loss.
- (2) No sales of property, plant, and equipment took place during the three-year period.
- (3) The changes in Other Noncurrent Assets are investing activities.
- (4) The changes in Employee Retirement Benefits relate to provisions made for retirement benefits net of payments made to retired employees, both of which the statement of cash flows classifies as operating activities.
- (5) The changes in Other Noncurrent Liabilities are financing activities.
- b. Prepare a comparative statement of cash flows for Year 2, Year 3, and Year 4.
- c. Discuss the relations among net income and cash flow from operations and the pattern of cash flows from operating, investing, and financing transactions for Year 2, Year 3, and Year 4.
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QUESTION TWO
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Selamat Islamic Bank Berhad (SIBB) just announced its financial report for the year ended
2016. Table below is a summary of CIBB's financial report.
(a)
Items
RM (000)
Income Statement
Operating Revenue
Net Income
Expenses
Profit after tax and zakat
3,662,444
1,540,333
700,343
543,443
Statement of Financial Position
Current Asset
Current Liability- Demand deposit
Total Debt
Total Assets
4,332,300
10,635,054
42,091,092
45,620,442
3,729,590
Total Equity Capital
Evaluate SIBB's performance based on the following financial ratios and explain what each
ratio means.
i.
The capability of management in converting assets into net earnings.
i.
The effectiveness of management to control cost, expenses and service price
O Focus
目
(United Kingdom)
ENC
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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