Recent Question

The operating activities section of the statement of cash flows 1. A statement of cash flows summarizes the operating, ____________, and ___________ activities of an entity. 2. The cash effects of selling goods and services appears in the ______________ activities section of a statement of cash flows. 3. The operating activities section of the statement of cash flows may be prepared using the ______________ method or the ______ ...

Other / Other 06 Apr 2016

What are the sources of information 1 The statement of cash flows is the only required financial statement that is not prepared from an adjusted trial balance. What are the sources of information for preparing a statement of cash flows? Explain how the accrual basis of accounting affects the statement of cash flows. 2 Cash flows from operating activities can be calculated using the indirect or direct method. Briefly describe how th ...

Other / Other 06 Apr 2016

Purchase of a building for cash MATCHING For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method. A. Added to net income B. Deducted from net income C. Cash outflow—investing activity D. Cash inflow—investing activity E. Cash outflow—financing activity F. Cash inflow—financing activ ...

Other / Other 06 Apr 2016

The company reported a loss on the sale of equipment 1 At January 1, 2011, Bergman Enterprises reported a balance in the Equipment account of $45,000. During the year the company purchased equipment with a cost of $60,000 and sold equipment with a book value of $30,000. The company reported a loss on the sale of equipment of $4,000. Assume the indirect method is used. Instructions Determine what amount will be reported in (a) the o ...

Other / Other 06 Apr 2016

Complete the worksheet for Jenner Company a1 The following information is available for Yates Corporation: Capital expenditures $105,000 Cash dividends 65,000 Cash provided by operations 200,000 Net income 130,000 Sales 600,000 Instructions Compute Yates Corporation's free cash flow. a2 Jenner Company has begun a worksheet for preparing a statement of cash flows. The following additional information is provided: 1. Cash di ...

Other / Other 06 Apr 2016

Prepare the operating activities section of the statement 1 The income statement of Falcone Company is shown below: FALCONE COMPANY Income Statement For the Year Ended December 31, 2011 Sales $8,000,000 Cost of goods sold 5,400,000 Gross profit 2,600,000 Operating expenses Selling expenses $500,000 Administrative expenses 700,000 Depreciation expense 90,000 Amortization expense 30,000 1,320,000 Net income $1 ...

Other / Other 06 Apr 2016

Give three examples of significant non-cash transactions 1 (a) Identify several alternatives for presenting significant non-cash activities in financial statements. (b) Give three examples of significant non-cash transactions. 2 The following information is available for Snider Company: Receipts from customers ₤190,000 Dividends from share investments 3,000 Proceeds from sale of equipment 18,000 Proceeds from issuance of ...

Other / Other 06 Apr 2016

Prepare a short memorandum to the president 1(Communication) You are the accountant for a small manufacturing firm. Your company is privately held, so there is no current requirement to issue financial statements using IFRS. You were hired four years ago, and at that time you instituted a cash budgeting system. Presently, you present a schedule of predicted cash sources and cash needs at the end of each week for the following week. Ken ...

Other / Other 06 Apr 2016

Bainbridge Company uses the direct method in determining net cash 1. In converting net income to net cash provided by operating activities, under the indirect method: a. decreases in accounts receivable and increases in prepaid expenses are added. b. decreases in inventory and increases in accrued liabilities are added. c. decreases in accounts payable and decreases in inventory are deducted. d. increases in accounts receivable and i ...

Other / Other 06 Apr 2016

Calculate the amount of cash payments for operating expenses 1 Schick Company reported cost of goods sold of €172,000 on its 2011 income statement. The company’s beginning inventory was €35,000. The ending inventory was valued at €40,000. The Accounts Payable balance at January 1 was €25,000. The December 31 balance in Accounts Payable was €22,000. Instructions Compute cash payments to suppliers. ...

Other / Other 06 Apr 2016