As consultants in advisory services at an accounting firm, we are hired by management of Gadberry to advise on cash flow reporting. Management is concerned about the relatively small net increase in cash, and how the company is doing compared to competitors Nessly and Tootsey. The following Tableau Dashboard will assist in our analysis.
1. Which company generates the most cash inflow from operating activities? 2. Which of these companies report "Net cash used in investing activities? 3. Calculate the total net increase or decrease in cash for (a) Gadberry. (b) Nessly, and (c) Tootsey.
Part 1
Which company generates the most cash inflow from operating activities? |
Gadberry |
Gadberry = $40000
Nessly = $(30000)
Tootsey = $10000
Part 2
Which of these companies report "Net cash used in investing activities"? |
Gadberry Tootsey |
Net cash used in investing activities refers to cash outflow from operating activities
Part 3
Company |
Total net change in cash |
Increase/decrease |
|
(a) |
Gadberry |
$2000 |
Increase |
(b) |
Nessly |
$10000 |
Increase |
(c) |
Tootsey |
$47000 |
Increase |
Total net change in cash = cash flow from operating activities + cash flow from investing activities and cash flow from financing activities
Gadberry = 40000-4000-34000 = $2000
Nessly = -30000+15000+25000 = $10000
Tootsey = 10000-9000+46000 = $47000
As all numbers are positive it indicates there is increase in cash balance
As consultants in advisory services at an accounting firm, we are hired by management of Gadberry...
As consultants in advisory services at an accounting firm, we are hired by management of Gadberry to advise on cash flow reporting. Management is concerned about the relatively small net increase in cash, and how the company is doing compared to competitors Nessly and Tootsey. The following Tableau Dashboard will assist in our analysis.Gadberry (green) Operating Activities: $40,000Nessly (Red) Investing Activites: $15,000Nessly (Orange) Financing: $25,000Tootsey (Green) Operating Activities: $10,000Gadberry (Red) Investing Activities: $(4,000)Gadberry (Orange) Financing Activities: $(34,000)Nessly (Green) Operating Activites:...
We were unable to transcribe this image$(10,000) $(20,000) Cash Outflows $(30,000) $(40,000) Operating Activities Investing Activities Financing Activities $(50,000) Net Income (Loss) for Competing Companies Gadberry Nessly Tootsey $(40,000) $(30,000) $(20,000) $(10,000) $0 $10,000 $20,000 $30,000 $40,000 Net Loss Net Income tableau < » K og Po 1. Which company generates the most cash inflow from operating activities? 2. Which of these companies report “Net cash used in investing activities”? 3. Calculate the total net increase or decrease in cash...
1. Which company generates the most cash inflow from operating activities? 2. Which of these companies report "Net cash used in investing activities"? 3. Calculate the total net increase or decrease in cash for (a) Gadberry, (b) Nessly, and (c) Tootsey.
REQ 1 and 2 are decreased/increase. As consultants, we are hired to help the company track and report costs. The following Tableau Dashboard is provided to assist us in our analysis. Inventories Work in Process Raw Materials Finished Goods S21.000 S18,000 $15.000 $12.000 $9,000 56,000 $3,000 $0 November 30 December 31 November 30 December 31 November 30 December 31 Factory Overhead for December Sales, Materials, and Payroll for December Indirect materials Indirect labor Factory payroll Raw materials purchases Total Overhead...
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