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Statement of Cash Flows

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

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

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

Please help me how to solve this problem

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 ........

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

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.

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

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

Income Statement and Computing Earnings per Share

9. Prepare in good form an income statement for Virginia Slim Wear. Take your calculations all the way to computing earnings per share. Sales ........................................................................................................... $ 600,000 Shares outstanding .............................................

Cash Flow Statement, Journal Entries etc...

This solution assists in determining cash flows for specific problems. E14-2 An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Gagliano Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary. Instruct

Indirect Statement of Cash Flows Creation

Villa Company reported net income of $195,000 for 2010. Villa also reported depreciation expense of $45,000 and a loss of $5,000 on the sale of equipment. The comparative balance sheet shows a decrease in accounts receivable of $15,000 for the year, a $17,000 increase in accounts payable, and a $4,000 decrease in prepaid expen

Statement of Cash Flows: Aqua Ltd.

See attached data. Use the direct method of presenting cash flows from operating activities, to prepare an statement of cash flows in accordance with AASB 107 It is for the year ended 30 June 2010 and also needs a reconciliation of cash flows arising from operating activities and profit. - The land revaluation reserve

Indicate in which part of the statement of cash flows

Indicate in which part of the statement of cash flows each item would appear: Operating activities Investing activities Financing activities Operating Investing Financing (a) Cash received from customers. Financing Operating Investing (b) Cash paid to stockholders (dividends). Financing Operating Investing (c) Ca