FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781618533111
Author: DYCKMAN
Publisher: Cambridge Business Publishers
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Use the following information from Dubuque Company's financial statements to prepare the operating activities section of the
statement of cash flows (indirect method) for the year 2018:
2018 Income
Statement
Balance Sheets
Sales
Cost of Goods Sold
Operating Expenses, other than depreciation expense
Depreciation Expense
Gain on Sale of Plant Assets
$ 299,000
(135,000)
(27,000)
(17,000)
16,500
136,500
Net Income
Dec. 31, 2018
$45,300
1,600
22,500
900
Accounts Receivable
Inventory
Accounts Payable
Accrued Liabilities
Accounts Receivable
Inventory
Accounts Payable
Accrued Liabilities
Dec. 31, 2017
$43,400
1,800
21,250
1,150
PLEASE NOTE: Use the account and term names exactly, as shown above and the accounts will be listed in the same order as shown
in the textbook examples. All dollar amounts will be rounded to whole dollars using "$" and commas as needed (i.e. $12,345) and
decreases will be shown with parentheses - $(12,345).
Use the information provided below to prepare the Cash Flow Statement of Chelsea Limited for the year ended 31 December 2021 using the answer template provided (see images)
Additional information: (See images)¦ Selling and administrative expenses include depreciation as follows:Depreciation on buildings R96 000Depreciation on plant and machinery R160 000¦ There were purchases but no disposals of property, plant and equipment for the financial year ended 31 December2021.¦ Total dividends for the year ended 31 December 2021 and 31 December 2020 amounted toR288 000 and R388 000 respectively.¦ Inventories on 31 December 2019 amounted to R560 000.¦ All purchases and sales of inventories were on credit.¦ The number of shares in issue was 400 000.¦ Credit terms from creditors are 90 days.
Use the information provided below to prepare the Cash Flow Statement of Alto Limited for the year ended 31
December 2022.
INFORMATION
The following amounts were obtained from the Statement of Comprehensive Income for the year ended 31
December 2022 and Statement of Financial Position of Alto Limited as at 31 December 2022 and 31
December 2021:
Sales
Cost of sales
Depreciation
Operating profit
Interest expense
Company tax for the year
Property, plant and equipment (carrying value)
Long-term investments
Inventories
Accounts receivable
Prepaid expenses
Cash and cash equivalents
Ordinary share capital (All shares issued at R10 each)
Retained earnings
Non-current liabilities
Accounts payable
Accrued expenses
Dividends payable
Company tax payable
31 Dec 2022
R
11 000 000
6 500 000
750 000
1 650 000
450 000
400 000
6 250 000
350 000
2 150 000
1 700 000
200 000
500 000
3 100 000
3 000 000
3 600 000
1 100 000
100 000
200 000
50 000
31 Dec 2021
R
Note:
■ Dividends paid and recommended during…
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- Calculate the operating cash flow for Initech. (Assume that depreciation is tax deductible.) Initech Corp. Income Statement ($000's) Revenue Cost of Goods Sold SG&A Depreciation Expense. EBIT Interest Expense Income Before Taxes Taxes Net Income: $100,000 64,798 16,202 4,739 14,260 7,230 7,030 2,108 $4,922arrow_forwardLayla Corp. is preparing its statement of cash flows for the year ended Dec. 31, 2021 and has provided the following information: Profit before income tax Depreciation on property, plant and equipment Provision for impairment losses Unrealized foreign exchange gains Fair value adjustment gain on FA at FVTPL Fair value adjustment loss on FA at FVTOCI Fair value adjustment loss on investment property Share of profit of associate Gain on sale of FA at AC Loss on sale of equipment Gain on debt extinguishment Gain on distribution of non-cash assets to owners Interest expense Interest payable, beginning of the year Interest payable, end of the year Interest income P880,000 250,000 150,000 60,000 130,000 65,000 190,000 220,000 85,000 70,000 125,000 40,000 150,000 100,000 50,000 80,000 30,000 20,000 Interest receivable, beginning of the year Interest receivable, end of the year Income taxes paid Accounts receivable, beginning of the year Accounts receivable, end of the year Inventory,…arrow_forwardConsider the following information from the Income Statement of Production Ltd. on 31st December 2022 (accounting year-end): Operating profit equals £30,000 and depreciation expense equals £2,000. In addition, consider the following information from the Statement of Financial Position of Production Ltd.: Trade Receivables Trade Payables 31st December 2021 31st December 2022 £ £ 2,500 9,000 32,000 12,000 Additional information: • Tax paid on cash during the current accounting year amounts to £12,500 • Gain on asset disposal equals £1,000. Considering all the previous information from Production Ltd., which of the following statements is true on 31st December 2022? O a. Production Ltd. shows a negative net cash flow from operating activities which equals -£8,000. O b. Production Ltd. shows a positive net cash flow from operating activities which equals £3,000. O c. The net cash flow from operating activities equals £0 O d. None of the answers is true.arrow_forward
- Suppose Canwest Global Communications Corp. reported net cash used by operating activities of $127,537,580 and sales revenue of $3,498,299,980 during 2022. Cash spent on plant asset additions during the year was $96,782,600. Calculate free cash flow. (Show a negative free cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) Free cash flow $arrow_forwardAngel Corporation's accounting records and financial statements for 2021 is as follows: Cash paid to acquire machinery = P32 million; Retired share capital = P51 million; Proceeds from sale of land = P95 million; Gain from the sale of land = P50 million; Investment revenue received = P72 million; Cash paid to acquire office equipment = P85 million. In its statement of cash flows, the company should report net cash flows from investing activities of: a. P22 million outflows b. P50 million outflows c. P100 million inflows d. P28 million inflowsarrow_forward1. The net profit before taxes as per the profit and loss account, of Gaman Ltd is Rs 269244. With the given set of information, classify the given items as (operating / investing / financing), share the correct classification with logical reasoning And calculate the cash flow from operating activities TABLE BELOW Loss on sale of asset 95780 dividend income 26000 interest income 35000 finance cost paid on debentures 12000 gain on sale of investment 45000 Depreciation on fixed assets 85000 Amortisation Expenses 110000arrow_forward
- Using the financial statements and additional information below, prepare a cash flow statement for Papa Ltd for the year ended 31st December 2018 using the indirect method of calculating operating cash flow and write a brief comment on the cash flow for the period. Papa Ltd Statement of Profit or Loss Account for the year ended 31st December 2018 GHC Revenue 540,000 Cost of sales (155,000) Gross profit 385,000 Investment income – interest received 15,000 Loss on disposal of equipment (18,000) Depreciation (94,000) Administrative and selling expenses (25,000) Operating profit before interest 263,000 Interest expense (10,000) Profit before taxation 253,000 Taxation (56,000) Profit after tax 197,000 Statement of financial position as at 31st December 2018 2017 GHC GHC Non-current assets Vehicle at cost 180,000 150,000 Accumulated depreciation (137,000)…arrow_forwardSuppose Canwest Global Communications Corp. reported net cash used by operating activities of $107,675,170 and sales revenue of $2,953,482,770 during 2022. Cash spent on plant asset additions during the year was $81,709,900. Calculate free cash flow. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Free cash flow $ 25,965,270 %24arrow_forward7. Use the following information from Dubuque Company’s financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018: 2018 Income Statement Balance Sheets Sales $299,000 Cost of Goods Sold (135,000) Operating Expenses, other than depreciation expense. (27,000) Depreciation Expense (17,000) Gain on Sale of Plant Assets 16,500 ------------- Net Income…arrow_forward
- Using the Exhibit below, assume that the depreciation expense on the Income Statement for the year was $38,000. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of depreciation expense on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of assets (XXX) Changes in current operating assets and liabilities:…arrow_forwardPls I need help with this 2 cashflow questions. Find attached Additional information:Equipment which had cost GH¢255, 000 and with a net book value of GH¢ 135,000 and was sold for GH¢96, 000 during the year.The cash proceeds of the sale of asset investments properties amounted to GH¢75,000.Dividends paid during the year amounted to GH¢240,000. Required:Prepare the company’s statement of cash flows for the year ended 31st December 2018, using the indirect method, adopting the format in IAS 7 Statement of cash flows.arrow_forwardQUESTION REQUIRED Use the information provided below to prepare the Cash Flow Statement of Jonah Ltd for the year ended 31 December 2022. (Some of the figures have already been entered in the answer book.) INFORMATION The Statement of Comprehensive Income of Jonah Ltd for the year ended 31 December 2022 and Statement of Financial Position as at 31 December 2021 and 2022 are as follows: STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022 Sales Cost of sales Gross profit Other operating income Gross income Distribution expenses Administrative expenses Earnings before interest and tax Interest income Interest expense Esmings before tax Company tax Earnings after interest and tax STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: ASSETS Non-current assets Land and buildings Plant and machinery Current assets Inventories Accounts receivable Total assets EQUITY AND LIABILITIES Equity Ordinary share capital Retained earnings Non-current liabilities Long-term borrowings…arrow_forward
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