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    Johnsfield Cash Flow concepts

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    Johnsfield & Co. will be undertaking the following financial transactions in the next planning period. For each transaction represented in the table below, check the statement or statements that will be affected immediately.

    `Pro Forma Income Pro Forma Balance
    Transaction Cash Budget Statement Sheet
    Cash Sales
    Credit Sales
    Account Receivable
    are collected
    Assets with 5-year Life
    are purchased
    Depreciation is taken
    Amortization of goodwill is taken
    Sale of common stock
    Retirement of outstanding bonds
    Fire Insurance premium is paid for the next 3 year

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    https://brainmass.com/business/accounting/johnsfield-cash-flow-concepts-215561

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    See Excel attached.

    3-10 Johnsfield Company
    Statement
    Pro Forma Income Pro Forma Balance
    Transaction Cash Budget Statement Sheet
    Cash Sales yes yes yes
    Credit Sales no yes yes
    Account Receivables are Collected yes no yes
    Assets with 5-year Life are purchased yes no yes
    Depreciation ...

    Solution Summary

    The solution lists each statement or statements affected by the transactions presented. Following the table, each no answer is explained.

    $2.19

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