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
BrainMass Solutions Available for Instant Download
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 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
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 .............................................
How might a cash flow statement be useful for a client on a personal level? Specifically, what questions might this cash flow statement answer for the client?
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
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
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
Commerce Company provides the following comparative data: 12.31.09 12.31.10 Cash $ 93 $ 127 Accounts Receivable
Allen Air is now in the terminal year of a project. The equipment originally co has $20m, of which 80% has been depreciated. Carter can sell the used equipment today to another airline for $5m, and its tax rate is 40%. What is the equipment's after-tax net salvage value?
Cairn Communications is trying to estimate the first-year operating cash flow (at t=1) for a proposal project. The financial staff has collected the following information: Projected Sales - $10m, Operating Costs (not including depreciation) - $7m, Depreciation - $2m, Interest Expense - $2m The company faces a 40% tax rate.
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
The comparative balance sheets for Hinckley Corporation show the following information: December 31 2010 2009 Cash $33,500 $13,000 Accounts receivable 12,250 10,000 Inventory 12,000 9,000 Investments
Problem 12-1A Statement of cash flows (indirect method) Kazaam Company, a merchandiser, recently completed its calendar-year 2011 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits
Cash flow can be said to equal: a.income before depreciation and taxes minus taxes b. income before depreciation and taxes plus taxes c. income before depreciation and taxes plus depreciation d. income after taxes minus depreciation
A machine can be purchased for $ 10,500, including transportation charges. But installation costs will require $1,500 more. The machine is expected to last four years and produce annual cash revenues of $6,000. Annual cash operating expenses are expected to be $2,000, with depreciation of $3,000 per year. the firm has a 30 perce
See attached file. As contained in the Week Four electronic reserve readings article readings, this article, Broome, O. W. (2004, March/April). Statement of cash flows: Time for change! Financial Analysts Journal, 60(2), 16. , describes the current SFAS No. 95 requirements for the statement of cash flows, cites recent cases o
The cash flow data of Greenleaf Company for the year ended December 31, 2004 are as follows: Cash payment of dividends $ 50,000 Purchase of land $ 48,000 Cash payments for interest $ 20,000 Cash payments for salaries $ 90,000 Sale of equipment $ 76,000 Retirement of common stock
Bloom Corporation had the following 2010 income statement. Sales $200,000 Cost of goods sold 120,000 Gross profit 80,000 Operating expense (including depreciation of $21,000) 50,000 Net income $30,000 The following accounts increased during 2011: accounts receivable $12,000; inventory $11,000; accoun
Illustrate the process for moving from transactions to the development of the income statement. The relationship between the balance sheet and the statement of cash flows. In what sense is the statement of cash flows a derivative statement of the balance sheet? The linkages between the income statement and the balance sh
See attached files. Case 7-1 Analysis of Cash Flows Refer to the annual report of Dell in Appendix A: Required: a. Explain how the following items create differences between Dell's earnings from continuing operations and its net cash provided by operating activities: (1) Depreciation and amortization (2) Change in
(Preparation of Operating Activities Section-Indirect Method) Norman Company's income statement for the year ended December 31, 2010, contained the following condensed information. Revenue from fees $840,000 cr Operating expenses (excl. depreciation) $624,000 db Depreciation expense 60,000 db Loss on sale of
(Preparation of Operating Activities Section-Direct Method) Norman Company's income statement for the year ended December 31, 2010, contained the following condensed information. Revenue from fees $840,000 cr Operating expenses (excl. depreciation) $624,000 db Depreciation expense 60,000 db Loss on sale of e
1. The Johnson Company bought a truck costing $24,000 two and a half years ago. The truck's estimated life was four years at the time of purchase. It was accounted for by using straight line depreciation with zero salvage value. The truck was sold yesterday for $19,000. What taxable gain must be reported on the sale of the tr
For each of the transactions, identify: 1. If the transaction is a cash inflow (CI), or a cash outflow (CO), or a non cash flow transaction (NT). 2. Each transaction as an operating activity (OA), an investing activity (IA), or a financing activity (FA), or a non cash flow transaction (NT). 1. Proceeds from issuance of de
The following transactions occurred during March 2011 for Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 30,000 shares of capital stock in exchange for $300,000 in cash 2. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance
Please help with attached cash flow question. Income statement 2010 2009 Sales $880,000.00 $801,000.00 Cost of goods sold -$590,000.00 -$490,000.00 Gross profit $290,000.00 $311,000.00 Gain on disposal of assets $5,000.00 Loss on sale of long term inv
The following account information is available for Park Company for 2004. Account Title Beginning of year End of Year Accounts Receivable $26,000 $24,000 Merchandise Inventory 52,000 56,0
A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and materials will be 55% of sales. Indirect incremental costs are estimated at $80,000 a year. The project requires a new pla
SHOEBOX ENTERPRISES INC. sells personalized items such as mugs, key chains, and plaques to the public. The company was started by two high school friends....(see case study pdf files attached): Complete the statement of cash flows for 2010. Data: SHOEBOX ENTERPRISES INC. BALANCE SHEETS AS AT DECEMBER 31, 20