Explanation Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company. Cash flows from operating activities: These are the cash produced by the normal business operations. Indirect method: Under indirect method, net income is reported first, and then non-cash expenses, losses from fixed assets, and changes in opening balances and ending balances of current assets are adjusted to reconcile the net income balance. Cash flows from investing activities: Cash provided by or used in investing activities is a section of statement of cash flows. It includes the purchase or sale of equipment or land, or marketable securities, which is used for business operations. Cash flows from financing activities: Cash provided by or used in financing activities is a section of statement of cash flows. It includes raising cash from long-term debt or payment of long-term debt, which is used for business operations. Non-Cash Transaction: The transaction, which does not involve any cash dealings, is known as non-cash transactions. In these type transactions there will not be any inflow or outflow of cash. Simply put, the transaction, which does not have an impact on the inflow or outflow of cash, is called as non-cash transactions. Examples of significant non-cash transactions are stated below: Issue of common stock to retire long-term debt. Purchase of machinery by issuing notes payable Issuance of common stock for purchase of land Prepare statement of cash flows for the year ended December 31, 2018: M Incorporation Statement of Cash Flows - Indirect Method Year Ended December 31, 2018 Particulars Amount ($) Amount ($) Cash flows from operating activities: Net Income 68,500 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation expense 24,000 Gain on sale of building (4,500) Decreases in accounts receivable 5,600 Increase in merchandised inventory (8,000) Increase in accounts payable 2,400 Decrease in income tax payable (2,000) 17,500 Net cash provided by operating activities 86,000 Cash flows from investing activities: Purchase of equipment (74,000) Cash receipt from sale of building 58,500 Net cash used for investing activities (15,500) Cash flows from financing activities: Cash receipts from issue of common stock 38,000 Cash receipt from issue of notes payable 62,000 Cash payments to notes payable (46,100) Payment of cash dividends (50,000)

Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)

6th Edition

ISBN: 9780134486857

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the …

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Owner's Capital

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…

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Chapter C, Problem 33AP

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Prepare statement of cash flows for the year ended December 31, 2018.

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Chapter C, Problem 32AP

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Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)

Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Prob. 6TI Ch. C - Prob. 7TI Ch. C - Prob. 8TI Ch. C - Muench Inc.s accountant has partially completed...Ch. C - Prob. 1QC

Ch. C - Prob. 2QC Ch. C - Prob. 3QC Ch. C - Prob. 4QC Ch. C - Prob. 5QC Ch. C - Prob. 6QC Ch. C - Prob. 7QC Ch. C - Prob. 8QC Ch. C - Prob. 9QC Ch. C - Prob. 10QC Ch. C - Prob. 1RQ Ch. C - Prob. 2RQ Ch. C - Prob. 3RQ Ch. C - Prob. 4RQ Ch. C - Prob. 5RQ Ch. C - Prob. 6RQ Ch. C - Prob. 7RQ Ch. C - If a company experienced a loss on disposal of...Ch. C - Prob. 9RQ Ch. C - Prob. 10RQ Ch. C - Prob. 11RQ Ch. C - Prob. 12RQ Ch. C - Prob. 13RQ Ch. C - Prob. 14RQ Ch. C - How does the direct method differ from the...Ch. C - Prob. 16RQ Ch. C - Prob. 1SE Ch. C - Prob. 2SE Ch. C - Prob. 3SE Ch. C - DVR Equipment, Inc. reported the following data...Ch. C - Prob. 5SE Ch. C - Prob. 6SE Ch. C - Prob. 7SE Ch. C - Prob. 8SE Ch. C - Prob. 9SE Ch. C - Julie Lopez Company expects the following for...Ch. C - Prob. 11SE Ch. C - Prob. 12SE Ch. C - Prob. 13SE Ch. C - Prob. 14SE Ch. C - Prob. 15SE Ch. C - Prob. 16E Ch. C - Prob. 17E Ch. C - Prob. 18E Ch. C - Prob. 19E Ch. C - Prob. 20E Ch. C - The income statement of Boost Plus, Inc. follows:...Ch. C - Prob. 22E Ch. C - Rouse Exercise Equipment, Inc. reported the...Ch. C - Use the Rouse Exercise Equipment data in Exercise...Ch. C - Prob. 25E Ch. C - Prob. 26E Ch. C - Prob. 27E Ch. C - Prob. 28E Ch. C - Prob. 29E Ch. C - Prob. 30E Ch. C - Prob. 31E Ch. C - American Rare Coins (ARC) was formed on January 1,...Ch. C - Prob. 33AP Ch. C - Prob. 34AP Ch. C - Prob. 35AP Ch. C - Boundary Rare Coins (BRC) was formed on January 1,...Ch. C - Use the Rolling Hills, Inc. data from Problem...Ch. C - Prob. 38AP Ch. C - Classic Rare Coins (CRC) was formed on January 1,...Ch. C - Accountants for Benson, Inc. have assembled the...Ch. C - Prob. 41BP Ch. C - Prob. 42BP Ch. C - Prob. 43BP Ch. C - Use the Sweet Valley data from Problem P14-41B....Ch. C - Prob. 45BP Ch. C - Prob. 47P Ch. C - Before you begin this assignment, review the Tying...Ch. C - Prob. 1DC Ch. C - Prob. 1EI Ch. C - Details about a companys cash flows appear in a...

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