I am having problems doing practice statement of cash flows problems, I need help answering P18-1A and 3A in excel. (See attached file for full problem description)
Statement of cash flow: indirect method, financing, investing, operating, direct method, inventory, declaration of dividends, sale of plant assets, receipt of interest
1. On an indirect method statement of cash flows, a gain on the sale of plant assets is: a. reflected in the investing activities section. b. added to net income. c. deducted from net income. 2. Using the indirect method of preparing a statement of cash flows, a loss on the sale of a plant asset is: a. ignored. b. ad
What is the purpose of the statement of cash flows? What information does it provide? Be sure to explain why statements of cash flows are important when assessing the financial strength of an organization.
Is operations cash flow always enough?
A dollar of cash equals a dollar of cash equals a dollar of cash. In other words, most of us would be happy with a $5 dollar bill, five $1 dollar bills or 20 quarters, correct? Does this same theory hold true for the cash flow statement? Would a company rather have a dollar of cash flow from operations or a dollar from investing
Prepare 2 cash flow statements: direct and indirect methods. (See attached file for full problem description) Company X Debits 31-Dec-05 01-Jan-05 Cash and Cash Equivalents $176,400 $58,000 Accounts Receivable 32,000 26,600 Inventory 21,000 25,400 Prepaid Insurance 5,600 4,000 Lomg-Term Investme
Why a statement of cash flow is essential for a bank to evaluate company's application for a loan? This company is short on cash.
When preparing a statement of cash flows, a decrease in prepaid insurance during a period would require which of the following adjustments in determining cash flows from operating activities? Indirect Method Direct Method a. Increase Decrease b. Decrease Increase c. Increase Increase d. Decrease De
Assets February 28 January 31 Cash $42,000 $37,000 Accounts receivable 64,000 53,000 Merchandise Inventory 81,000 94,000
True False 1. Under the direct write-off method, no attempt is made to match bad debts expense to sales revenues in the same accounting period. 2. Restricted retained earnings are available for preferred stock dividends but unavailable for common stock dividends. 3. The statement of cash flows is a required
20. Presented below is the income statement of Gregg, Inc.: Sales $380,000 Cost of goods sold 225,000 -------- Gross profit $155,000 Operating expenses
I am having problems studying. Here is an example of the problems I am studying for my course next week. Edwards, Inc. has prepared the following comparative balance sheets for 2003 and 2004: 2004 2003 ---------- -
See attached file. LANGLEY COMPANY Comparative Balance Sheet Dec. 31, 2003 Dec. 31, 2002 Assets Cash $27,000 $12,000 Accounts receivable 18,000 14,000 Prepaid expenses 6,000 9,000 Inventory 27,000 18,000 Long-term investment in bonds 0.00 18,000 Equipment 62,000 30,000 Accumulated depreciation-equipment (20
Please see the atached document to review my work to see if I am on base with the assignment. 7. (SCF-Direct and Indirect Methods from Comparative Financial Statements) George Winston Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative statement of
A company is considering a new 2 year expansion project which will require an intial fixed asset investment of $6.21 million, the fixed asset will be depreciated straight line to zero over its 2 year tax life after that it will be worthless, this project is estimated to generate $5,520,000 in annual sales, have costs of $2,208
E4 - 8 Determining cash collections on account Fresh Company is preparing its cash results for the month of May. The following information is available concerning its account receivable: Estimated credit sales for May $ 200,000 Actual credit sales for April $ 150,000 Estimated collection in May for credit
Info taken from selected 2005 financial statements is as follows: a) A/R increased 45,000 b)COGS $820,000 c)Dividends Declared and Pd $75,000 d)Income Tax Exp $70,000 e)Interest Exp $40,000 f)Investment, Avail-For-Sale decreased $55,000 g)Gain on sale of Equip $10,000 h)Land Increased $315,000 i)Loss on Sale of Machin
(See attached file for full problem description) --- The income statement of Dreamworks International Co. for the year ended December 31, 2002, reported the following condensed information. Revenue from fees $470,000 Operating expenses 280,000 Income from operations 190,000 Income tax expense 47,000 Net income $143,000
I basically understand how to calculate this problem so far, see attachment, however, the last part is as follows: New chips: Selling price= $25 Cost price= $8 Margin $17 =25-8 How would calculate the No of chips? What would be the net cash flow from the sale of new chips? Please be informative with a
In the statement of cash flows, an increase in the accounts receivable balance from the beginning of the period to the end of the period would: A. be added to net income because this represents earned revenues that have not been collected. B. be subtracted from net income because this represents earned revenue provided by
1. The Financial Accounting Standards Board (FASB) indicated that the traditional accounting information system design actually constrained standard setting in FASB Statement 95, "A Statement of Cash Flows." The Board received 450 comment letters, most from bank lending officers-accounting information users-who favored requirin
Given the attached information: Prepare the operating activities section of the statement of cash flows using the direct method. ** See ATTACHED file(s) for complete details **
Given the attached info: Prepare a statement of cash flows in proper form for 2003, using the indirect method. PART VIII - STATEMENT OF CASH FLOWS Presented below is information related to the operations of Tanner Corporation. December 2003 2002
The Financial Statements of Frank B Robinson Company appear below: FRANK B. ROBINSON COMPANY Comparative Balance Sheets 31-Dec Assets 2002 2001 Cash 29,000 13,000 Accounts receivable 28,000 14,000 Merchandise inventory 25,000 35,000 Property, plant, and equipment 60,000 78,000 Accumulated d
I wanted to pose a rather interesting question to garner feedback from the experts. How can you sustain good longer-term relations with business partners (customers and vendors) in the face of the need to improve cash flow and hold down bank borrowing? Thanks for your feedback.
Suppose net income is forecasted to be $1,188 for the coming year, depreciation expense is forecasted to be $1,957, and dividends are expected to be $451. The balances in accounts receivable, inventories, accounts payable, and gross property, plant, and equipment are expected to be $279, $4,889, $2,209, and $26,111, respectively
Please show all work so I can understand similar problems. Thanks 1. Suppose net income for the coming year is forecasted to be $1,634 and dividends are forecasted to be $657. After careful analysis, you determine asset needs for next year are $48,824 and liabilities are expected to be $12,869. Owner's equity of the year
1. A company bought new equiptment costing $200,000. It paid $150,000 in cash and received a part-exchanged allowance of $50,000 on some old equpitment, which had a book value of $40,000. Is also sold another item of equiptment, with a book value of $20,000, for $15,000. How should these transactions appear in a cash flow statem
The use of the certainty equivalent method to evaluate cash flows is a variation of ________ the internal rate of return method of analysis, the payback method of analysis, the net present value method of analysis, or the sensitivity method of analysis please advise answer & why - thanks!
A corporation is evaluating the relevant cash flow for a capital budgeting decision and must estimate cash flow. The proposed machine will be disposed of at the end of its usable life of five years at an estimated sale price of $2,000. The machine has an original purchase price of $80,000, installation cost of $20,000, and wil