Homework Answers
Statement of cash flows represents the inflows and outflows of cash during a particular period of time. It is divided into 3 sections as cash flows from operating activities, cash flows from investing activities and cash flows from financing activities. Net combined cash flows from these 3 activities show the net increase or decrease in cash during the period.
There may be the situations where net income as shown by the income statement is high but there is little cash available in the business or net income may be low or net loss but there is huge amount of cash available. So, to check where the cash has gone or where it is spent, a cash flow statement is prepared. A current statement is needed to prepare the cash flow statement as we take net income from it and we adjust this net income to reconcile it with net cash provided by operating activities, by adding or deducting the non cash items in it.
A comparative balance sheet is also needed to prepare the statement of cash flows. We take changes in the operating, investing and financing activities' items from previous year to current year, in order to find out the net change (increase or decrease) in cash during the period.
If there are any other transactions during the year, like sale or purchase of assets or any other information, then it is also taken into account, as cash flows from operating, investing or financing activity as the case may be, while preparing the statement of cash flows.
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oints per week. This week's discussion question: Why is it necessary to use comparative balance sheets,...
Why is it necessary to use comparative balance sheets, a current income statement, and certain transaction...
Why is it necessary to use comparative balance sheets, a current income statement, and certain transaction data in preparing a statement of cash flows?
Question 29 Which of the following is not needed in order to prepare a statement of...
Question 29 Which of the following is not needed in order to prepare a statement of cash flows? Last year’s statement of cash flows. Current year’s income statement. Comparative balance sheets. Selected transaction data.
Rojas Corporation's comparative balance sheets are presented below. 2019 ROJAS CORPORATION Comparative Balance Sheets December 31...
Rojas Corporation's comparative balance sheets are presented below. 2019 ROJAS CORPORATION Comparative Balance Sheets December 31 2020 Cash $14,600 Accounts receivable 20,800 Land 19,800 Buildings 70,000 Accumulated depreciation-buildings (15,300) Total $109,900 $10,000 23,600 25,600 70,000 (10,900) $118,300 Accounts payable Common stock Retained earnings Total $12,100 74,900 22,900 $109,900 $27,800 71,000 19,500 $118,300 Additional information: 1. Net income was $22,600. Dividends declared and paid were $19,200. 2. No noncash investing and financing activities occurred during 2020. 3. The land was sold...
please help Majestic Travel Services, Inc. Comparative Balance Sheets December 31, 2017 and 2016 Assets 2017...
please help
Majestic Travel Services, Inc. Comparative Balance Sheets December 31, 2017 and 2016 Assets 2017 2016 $ Current assets: Cash Accounts receivable Inventory Prepaid insurance Total current assets 45,000 $ 79.000 58.000 9,000 13,000 82.000 21.000 10,000 $ 191,000 $ 126,000 Print Print | Done Done C HCEL Land Equipment $ 109,000 $ 118,000 78,000 57.000 (22,000) (16,000) $ 356,000 $ 285,000 Etiv Less: Accumulated depreciation cer Total assets Liabilities Current liabilities Accounts payable Wages payable Interest payable $...
The comparative balance sheets and income statement of Piura Manufacturing follow. Piura Manufacturing Comparative Balance Sheets...
The comparative balance sheets and income statement of Piura Manufacturing follow. Piura Manufacturing Comparative Balance Sheets For the Years Ended June 30, 20X1 and 20X2 1 20X1 20X2 2 Assets: 3 Cash $72,000.00 $146,400.00 4 Accounts receivable 44,000.00 48,000.00 5 Inventory 64,000.00 44,000.00 6 Plant and equipment 104,000.00 112,000.00 7 Accumulated depreciation (52,000.00) (48,000.00) 8 Land 20,000.00 20,000.00 9 Total assets $252,000.00 $322,400.00 10 Liabilities and equity: 11 Accounts payable $32,000.00 $48,000.00 12 Wages payable 4,000.00 2,400.00 13 Bonds payable...
Concept Check MKH Company Comparative Balance Sheets Use the following comparative balance sheets and additional information...
Concept Check MKH Company Comparative Balance Sheets Use the following comparative balance sheets and additional information to answer questions (1) through (4). Additional Information for MKH Co. in 20X1: 1. Net income for year 20X1 was $216,000. 2. The company declared and paid a cash dividend of $132,800. 3. The only posting to the net equipment account was for depreciation expense of $35,000 (i.e., no equipment was sold). 4. MKH sold land worth $19,200 for $8,000 cash. 5. The company...
The comparative balance sheets and income statement for Franklin Corporation follow: Balance Sheets As of December...
The comparative balance sheets and income statement for Franklin Corporation follow: Balance Sheets As of December 31 2017 2016 Assets Cash $ 67,778 $ 41,150 Accounts receivable 29,073 21,320 Merchandise inventory 156,338 171,970 Prepaid rent 2,295 4,590 Equipment 252,050 285,350 Accumulated depreciation (147,740 ) (239,060 ) Land 190,190 78,290 Total assets $ 549,984 $ 363,610 Liabilities Accounts payable (inventory) $ 69,662 79,020 Salaries payable 30,357 26,020 Stockholders’ equity Common stock, $50 par value 250,500 201,500 Retained earnings 199,465 57,070 Total...
Rojas Corporation's comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2019...
Rojas Corporation's comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2019 2020 Cash $14,600 $10,300 23,900 Accounts receivable 21,600 Land 20,500 25,900 Buildings 70,200 70,200 Accumulated depreciation-buildings (14,500) (10,800) $112,400 $119,500 Total Accounts payable $12,000 $28,200 74,000 73,300 Common stock Retained earnings 18,000 26,400 $112,400 $119,500 Total Additional information : 1. Net income was $22,900. Dividends declared and paid were $14,500. 2. No noncash investing and financing activities occurred during 2020 3. The land was...
Exercise 12-9 Here are comparative balance sheets for Wildhorse Co.. 2018 Wildhorse Co. Comparative Balance Sheets...
Exercise 12-9 Here are comparative balance sheets for Wildhorse Co.. 2018 Wildhorse Co. Comparative Balance Sheets December 31 Assets 2019 Cash $ 73,000 Accounts receivable 86,500 Inventory 170,000 Land 72,900 Equipment 261,000 Accumulated depreciation-equipment (66,000) Total $597,400 Liabilities and Stockholders' Equity Accounts payable $ 35,400 Bonds payable 148,800 Common stock ($1 par) 216,500 Retained earnings 196,700 Total $597,400 $ 33,400 70,900 187,000 100,300 200,700 (34,200) $558,100 $ 47,000 203,600 175,300 132,200 $558,100 Additional information: 1. Net Income for 2019 was...
Rojas Corporation's comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2020...
Rojas Corporation's comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2020 2019 Cash $14.500 $10,700 Accounts receivable Land 20,800 19,600 70,100 23,800 26,300 70,100 Buildings Accumulated depreciation-buildings (15,000) $110,000 (10,700) $120,200 Total Accounts payable $11.800 $28,300 Common stock 75,000 73.400 Retained earnings 23,200 18,500 Total $110,000 $120.200 Additional information: 1. Net income was $22,800. Dividends declared and paid were $18,100. 2. No noncash investing and financing activities occurred during 2020. 3. The land was sold...
Rojas Corporation's comparative balance sheets are presented below. 2019 ROJAS CORPORATION Comparative Balance Sheets December 31 2020 Cash $14,600 Accounts receivable 20,800 Land 19,800 Buildings 70,000 Accumulated depreciation-buildings (15,300) Total $109,900 $10,000 23,600 25,600 70,000 (10,900) $118,300 Accounts payable Common stock Retained earnings Total $12,100 74,900 22,900 $109,900 $27,800 71,000 19,500 $118,300 Additional information: 1. Net income was $22,600. Dividends declared and paid were $19,200. 2. No noncash investing and financing activities occurred during 2020. 3. The land was sold...
please help
Majestic Travel Services, Inc. Comparative Balance Sheets December 31, 2017 and 2016 Assets 2017 2016 $ Current assets: Cash Accounts receivable Inventory Prepaid insurance Total current assets 45,000 $ 79.000 58.000 9,000 13,000 82.000 21.000 10,000 $ 191,000 $ 126,000 Print Print | Done Done C HCEL Land Equipment $ 109,000 $ 118,000 78,000 57.000 (22,000) (16,000) $ 356,000 $ 285,000 Etiv Less: Accumulated depreciation cer Total assets Liabilities Current liabilities Accounts payable Wages payable Interest payable $...
Rojas Corporation's comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2019 2020 Cash $14,600 $10,300 23,900 Accounts receivable 21,600 Land 20,500 25,900 Buildings 70,200 70,200 Accumulated depreciation-buildings (14,500) (10,800) $112,400 $119,500 Total Accounts payable $12,000 $28,200 74,000 73,300 Common stock Retained earnings 18,000 26,400 $112,400 $119,500 Total Additional information : 1. Net income was $22,900. Dividends declared and paid were $14,500. 2. No noncash investing and financing activities occurred during 2020 3. The land was...
Exercise 12-9 Here are comparative balance sheets for Wildhorse Co.. 2018 Wildhorse Co. Comparative Balance Sheets December 31 Assets 2019 Cash $ 73,000 Accounts receivable 86,500 Inventory 170,000 Land 72,900 Equipment 261,000 Accumulated depreciation-equipment (66,000) Total $597,400 Liabilities and Stockholders' Equity Accounts payable $ 35,400 Bonds payable 148,800 Common stock ($1 par) 216,500 Retained earnings 196,700 Total $597,400 $ 33,400 70,900 187,000 100,300 200,700 (34,200) $558,100 $ 47,000 203,600 175,300 132,200 $558,100 Additional information: 1. Net Income for 2019 was...
Rojas Corporation's comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2020 2019 Cash $14.500 $10,700 Accounts receivable Land 20,800 19,600 70,100 23,800 26,300 70,100 Buildings Accumulated depreciation-buildings (15,000) $110,000 (10,700) $120,200 Total Accounts payable $11.800 $28,300 Common stock 75,000 73.400 Retained earnings 23,200 18,500 Total $110,000 $120.200 Additional information: 1. Net income was $22,800. Dividends declared and paid were $18,100. 2. No noncash investing and financing activities occurred during 2020. 3. The land was sold...
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