Purchase Solution

Statement of cash flows

Not what you're looking for?

Ask Custom Question

Quinn Development, Inc. constructs homes and offices and sells them to customers. The financial information shown below was gathered from its accounting records for 2009. Assume any increase or decrease in the balances from 1/1/09 to 12/31/09 resulted from either receiving or paying cash in the transaction. For example, during 2009 the balance on loans for land holdings increased $75,000 because the company received $75,000 in cash by taking out an additional loan on the land.

Balance as of Balance as of
Items 01/01/09 12/31/09

Cash $130,000 $175,000
Cash receipts from customers 0 750,000
Loans on land holdings 225,000 300,000
Cash distributions to owners 0 60,000
Loan on building 130,000 80,000
Investments in securities 600,000 845,000
Cash payments for other expenses 0 32,000
Cash payments for taxes 0 43,000
Cash payments for operating expenses 0 215,000
Cash payments for wages and salaries 0 135,000

1. Prepare a statement of cash flows for Quinn Development, Inc., for the year ended December 31, 2009.

2. Does Quinn Development, Inc., appear to be in good shape cash standpoint? What other information would help analyze situation?

Purchase this Solution

Solution Summary

The expert examines the statement of cash flows for additional loans.

Solution Preview

Please see the attached Excel spreadsheet.

Direct Method

Cash Flows from Operating Activities
Cash receipts from customers   $750,000
Cash payments for taxes   $(43,000)
Cash payments for other expenses $(32,000)
Cash payments for opeating expenses   $(215,000)
Cash payments for wages and ...

Purchase this Solution


Free BrainMass Quizzes
Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.