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# Statement of Cash Flows

### Preparing a Cash Flow Summary

Prepare the cash flow summary for a project given the following information: Service life 8 years Recovery period 5 years Depreciation method Accelerated Purchase price \$9700 Installation and shipping cost \$ 300 Change in net working capital \$ 500 Annual revenue \$6000 Annual expense (years 1-5) \$2000 Annual expense (y

### Statement of Cash Flows

In this graded discussion, we will be examining the process of evaluating the financial performance and health of a company with the use of problems and exercises from your textbook. The goal is to cover all of the requirements to ensure an opportunity for your successful completion of Course Project 2. Let's start with gaini

### This post addresses the Melvin Company cash flows exercise.

Melvin Company's income statement for the year ended December 31, 2012, contained the following condensed information. Revenue from fees \$830,220 Operating expenses (excl. depreciation) \$625,300 Depreciation expense 62,250 Loss on sale of equipment

### Cash Flow

Timber firewood company reported the following numbers in its 2010 income statement: EBIT \$520,000 Depreciation \$35,000 Interest expenses \$24,000 General expenses \$110,000 If it's marginal tax rate was 30%, what were Timber's cash flows from operating activities for 2010? a.) \$347,200

### Cash Flow Statement Calculations

Walter Inc. recorded the following events last year: Issuance of shares of the company's own common stock \$150,000 Purchase of long-term investment \$60,000 Dividends paid to company's own shareholders \$27,000 Cash paid to suppliers for inventory purchases

### Managerial Accounting Statement of Cash Flows: Harvey Inc.

Prepare a statement of cash flows for Harvey Inc for the year using the indirect method. Please see the attachment for the full question and data.

### Importance of Statement of Cash Flow

1) Discuss the importance of the statement of cash flow. Discuss the decisions that are made based upon this information. 2) Recommend an innovative way that the statement of cash flow may be useful when making business decisions.

### Horizontal Flow, Inward-Outward Flow, Vertical Information flow

Horizontal Flow, Inward-Outward Flow, Vertical Information flow, and Downward Information Flow of financial data in the Kuali system Please carefully explain (in general) the kinds of data involved, who's doing what to them, and what effects they have, with reference to the appropriate financial and other information. You

### Gain on Sale of Equipment 8,000 Purchase of Will Bonds

Gain on Sale of Equipment 8,000 Purchase of Will Bonds (\$300,000 face value) 275,000 Proceeds from Sale of Machinery 300,000 Dividends Paid 50,000 Proceeds from sale of treasury stock 200,000 What is the amount reported as net cash provided from investing activities? \$25,000 \$50,000 \$275,000 \$575,000 What is

### Can you think of any instances in which a company would not need cash?What particular items on the cash flow statement would indicate extreme risk to an investor? Do you think the importance of each section of the cash flow statement depends on what stage a company is in its lifecycle? For example, would one section be more important to a start up while another section would be more important to a cash cow? Why or why not?

Can you think of any instances in which a company would not need cash? What particular items on the cash flow statement would indicate extreme risk to an investor? Do you think the importance of each section of the cash flow statement depends on what stage a company is in its lifecycle? For example, would one section be more im

### Solving Cash Flow Problems

Decide whether each is an operating, financing or investing activity or a non cash transaction. Tell whether the effect on cash flow is an increase or decrease? 1. Increased accounts payable. 2. Decreased inventory. 3. Increased prepaid insurance. 4. Earned a net income. 5. Declared and paid a cash dividend

### Statement of Cash Flows Indirect Method

The comparative balance sheets for Lopez Ceramics, Inc., for December 31, 2010 and 2009, are as shown below: During 2010, the company had net income of \$48,000 and building and equipment depreciation expenses of \$40,000 and \$30,000, respectively. It amortized intangible assets in the amount of \$10,000; purchased investments f

### Cash flow for the year by using all three methods

A new project will generate sales of \$74.5 million, costs of \$42.5 million, and depreciation expense of \$10.5 million in the coming year. The firm's tax rate is 30%. a. Calculate cash flow for the year by using all three methods: (a) adjusted accounting profits; (b) cash inflow/cash outflow analysis; and (c) the depreciation

### Cash flow statements for governmentally owned and non governmentally owned hospitals

Compare cash flow statements that a nongovernmentally owned hospital prepares versus the cash flow statements a governmentally owned hospital prepares.

### Assume a \$4,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 \$1,000 \$1,300 2 800 2,800 3 700 100 4 1,900 5 2,000 a. Under the payback method, which investment should be chosen? (Show work/calculations for each investment). b. Why do other methods allow for a better analysis?

Question 1. Assume a \$4,000 investment and the following cash flows for two alternatives. Year Investment X Investment Y 1 \$1,000 \$1,300 2 800 2,800 3 700 100 4 1,900 5 2,000 a. Under the payback method, which investment should be chosen? (Show work/calcu

### Tiger Company: Statement of Cash Flows using the indirect method

A comparative balance sheet for Tiger Company appears below: TIGER COMPANY Comparative Balance Sheet 12/31/2008 12/31/2007 Assets Cash \$23,000 \$10,000 Accounts receivable 18,000 14,000 Inventory 27,000 18,000 Prepaid expenses 6,000 9,000 Long-term investments -0- 18,000 Equipment 60,000 32,000 Accumulat

### Relevant cash flows for a project

The Shoe Box is considering adding a new line of winter footwear to its product line-up. Which of the following are relevant cash flows for this project? I. decreased revenue from products currently being offered if this new footwear is added to the lineup II. revenue from the new line of footwear III. money spent to date l

Andrews Inc., a greeting card company, had the following statements prepared as of December 31, 2010. ANDREWS INC. Comparative Balance Sheet as of December 31, 2010 and 2009 12/31/10 12/31/09 Cash \$ 5,819 \$ 8,975 Accounts Receivable 61,872 48,801 Short-term investments (Available-for-sale) 35,033 18,107 Inventories 3

### Rapture Company: Statement of Cash Flows

Rapture Company's 2011 income statement and selected balance sheet data at December 31, 2010 and 2011 follow. Prepare the Statement of Cashs - Only the operating section is required. RAPTURE COMPANY Selected Balance Sheet Accounts At December 31 2011 2010 Accounts receivable ........

### The Operating Cash Flow Section of the Cash flow statement using the Indirect Method and Calculation of the amount of dividends paid

Condensed financial statements for Dragon Enterprises follow. (A) Calculate the amount of dividends Dragon paid using the information given. (B) Prepare the Operating Cash Flow Section of the statement of cash flows using the indirect method. Comparative Balance sheets Dec 31, 2009 and 2008 2009 2008 Cash 1,2

### Calculations with cash flow from operating activities

4.7 Indicate whether each of the following items would result in net cash flow from operating activities being higher (H) or lower (L) than net income. (A) Decrease in accounts payable. (B) Depreciation expense. (C) Decrease in Inventory. (D) Gain on sale of assets. (E) Increase in accounts receivable. (F) Increase in defe

### Operating Cash inflows. Depreciation

Please see below for what I need help with (and please show all work). Thanks in advance. 1. Tabletop Ranches, Inc. is considering the purchase of a new helicopter for \$350,000. The firm's old helicopter has a book value of \$85,000, but it can only be sold for \$60,000. It was being depreciated at the rate of \$13,500 per year

### Accounting: Statement of Cash Flows

What is the present value of the following cash flow stream at an interest rate of 12.0% per year? \$0 at Time 0; \$1,500 at the end of Year 1; \$3,000 at the end of Year 2; \$ 4,500 at the end of Year 3; and \$6,000 at the end of Year 4.

### Free cash flow; effect of dividends paid; LBY Company total debits on the trial balance

4. Free cash flow can be utilized to A. retire stock or debt. B. acquire new assets. C. pay additional dividends. D. All of the above are correct. 5. The payment of cash dividends will A. Increase the operating section of the statement of cash flows. B. Decrease the operating

### How does the income statement articulate with the Balance sheet? 2. Comment on the major changes in expenses between the two financial years. 3. Distinguish between depreciation and amortisation 4. When is hospital service income regconised in the income statement? please explain. 5. There was a significiant increase in"other operation income" from 2008 to 2009. What was the main contributing factors that explains this increase? 6. An asset is similar to an expense. Do you agreed? please explain with reason. 7. Although the income statement is a record of past achievement, the calculations required for certain expenses involce estimates of the future". what is meant by this statement? Can you think of examples where estimates of the future are used??? 8." Depreciation is a process of allocation and not valuation" what it meant? 9. How would you suggest a bunsiness determine the bad and doubful debts' expenses for a given period? 10. The cash flow statement provides an explanation of the change in cash for the reporting entity. what is included in cash? 11. In what ways is the cash flow: - Similar to the income statment? - different from the income statement? 12. For the three categories of sources / uses of cash summarised in the cash flow statement, comment on the significant changes between 2009 and 2010. 13. What factors could give rise to the accounting "accrual profit" exceeding the cash flow from operating activites? 14. If you reviewed the cash flow statement for an organisation over several years and what would you expect to observe about the net flow from each of the three different activites?

Please help ( refer to the attachment) as unable to explain with the balance sheet. 1. How does the income statement articulate with the Balance sheet? 2. Comment on the major changes in expenses between the two financial years. 3. Distinguish between depreciation and amortisation 4. When is hospital service income r

### Statement of Cash flows- indirect method

The following balances are available for Chrisman Company. December 31 Cash 2010=\$8,000 2009=\$10,000 Accounts receivable 2010=\$20,000 2009=\$15,000 Inventory 2010=\$15,000 2009=\$25,000 Prepaid rent 2010=\$9,000 2009=\$6,000 Land 2010=\$75,000 2009=\$75,000 Plant and equipment 2010= \$400,000 2009=\$300,000 Totals= 2010=\$462,00

### PV of periodic payments, statement of cash flows - both methods

See attached file for proper format. Number 1 Compute the present value of the following periodic amounts due at the end of the designated periods. a) \$57,500 receivable at the end of each period for 8 periods compounded at 12%. b) \$77,700 payments to be made at the end of each period for 16 periods at 9%. c) \$85,100 pa

### Preparing a Statement of Cash Flows using the Indirect Method

Lowry Landscapes had net income of \$50,000 for 2010. Land was sold for \$40,000, of which \$3,000 was a gain. The beginning cash balance was \$53,000, and the ending cash balance was \$151,000. Depreciation expenses were \$11,000. Prepare a statement of cash flows for the year ended December 31, 2010, for Lowry Landscapes using the i

### Operating activities section of the statement of cash flows

In the operating activities section of the statement of cash flows, we start with net income: in the direct method. in the indirect method. in both the direct and the indirect methods. in neither the direct nor the indirect methods.

### Statement of cash flows

Statement of cash flows For each event listed below, select the appropriate category which describes the effect of the event on the statement of cash flows a) Cash provided/ used by operating activities b) cash provided/ used by investing activities c) cash provided/ used by financing activities d) not a cash flow 1