Homework Answers
AS- 13
Cash flow from operating activities
Net profit before tax
Add:Depreciation
Preliminary expenses written off
Goodwill patents written off
Loss on sale of fixed assets
Increase in General reserve
Less:item to be deducted
Rent received
Interest received
Dividend received
Gain on sale of fixed assets
Add decrease in current assets
increase in current liability
Less Increase in current assets
Decrease in current liability
As 14
Cash flow from investing activities
cash inflows
a)Sale of fixed assets
b)Sale of investment
c)Interest received
e)Dividend received
cash outflows
a)Purchase of fixed assets
b)Purchase of investments
AS 15
Cash flow from financing activities
cash inflow
Proceeds from issue of shares
Proceeds from debentures and long term borrowings
cash outflow
Repayment of long term borrowings
Redemption of shares and debentures
Interest paid
Dividend paid
AS 16
Gain of sale of equipment indicates profit on sale of equipment which increases cash inflows
As 17
Gain on sale of assets will be deducted from net profit before tax in indirect method of cash flows
AS 18
Free cash flows are cash flows from operations of the company minus
expenditure on assets
AS 19
Positive cash flows mean the company is generating a good flow of
cash which will increase the income of the investor. The lender is
happy with the positive cash flow because he will be able to get
back his money without any chances of bad debt.
AS 20
One of the methods by which a company unethically inflates cash
flows by investing in the securities market which may not be the
main activity of the company and another way is by speeding up the
recognition of money to be received
Add Answer to:
Financial Information and Cash Flows Chapter 1 AS-13L04 Which items appear in the cash flow from...
Suppose AF company uses the indirect method to prepare the cash flow statement. Indicate which of...
Suppose AF company uses the indirect method to prepare the cash flow statement. Indicate which of the following items will appear in the cash flow from financing activities section of the cash flow statement. [Tick all that apply]. Cash paid to buy back bonds Cash paid to buy back company's own stock Cash paid to purchase equipment. Cash proceeds from the sale of the equipment Depreciation expense Dividends paid Gain on the sale of the equipment Interest expense
Exercise 12.6 Indirect: Cash flow from。perations LO P2 Salud Company reports the following information. Use the...
Exercise 12.6 Indirect: Cash flow from。perations LO P2 Salud Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31. (Amounts to be deducted should be indicated with a minus sign.) Selected Annual Income Statement Data Net income Depreciation expense Gain on sale of machinery Selected Year-End Balance Sheet Data $400,000 Accounts receivable increase 80,000 Prepaid expenses decrease 20,000 Accounts payable increase $40,000...
Exercise 12-6 Indirect: Cash flow from operations LO P2 Salud Company reports the following information. Use...
Exercise 12-6 Indirect: Cash flow from operations LO P2 Salud Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31. (Amounts to be deducted should be indicated with a minus sign.) 16.66 points Selected Annual Income Statement Data Selected Year-End Balance Sheet Data Net income $400,000 Accounts receivable increase $40,000 Depreciation expense 80,000 Prepaid expenses decrease 12,000 Gain on sale of machinery...
Cash Flows from Operating Activities-Indirect Method The income statement disclosed the following items for the year:...
Cash Flows from Operating Activities-Indirect Method The income statement disclosed the following items for the year: Depreciation expense $46,000 26,830 Gain on disposal of equipment 287,600 Net income The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $7,160 (4,080) Inventory Prepaid insurance (1,530) (4,860) Accounts payable Income taxes payable 1,530 Dividends payable 1,070 a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the...
Cash Flows from Operating Activities,Indirect Method The income statement disclosed the following items for the year:...
Cash Flows from Operating Activities,Indirect Method The income statement disclosed the following items for the year: Depreciation expense $57,600 Gain on disposal of equipment 33,600 Net income 508,000 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable Inventory Prepaid insurance $8,960 (5,120) (1,920) (6,080) 1,410 Accounts payable Income taxes payable Dividends payable 2,200 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the...
Mimos Woodworking Company is preparing its statement of cash flows using the indirect method. During the...
Mimos Woodworking Company is preparing its statement of cash flows using the indirect method. During the year, Thomas Woodworking sold equipment for $6490 cash. The net book value of the asset was $4770. Which of the Following statements is true! The gain on sale of $1,720 is shown as a positive cash flow in the financing activities section The cash receipt of $6.490 is shown as a positive cash flow in the investing activities section. The book value of the...
Question 1 (60 points) Match items that appear on the statement of cash flows for the...
Question 1 (60 points) Match items that appear on the statement of cash flows for the year ended 12/31/2014 with the appropriate presentation on the statement. Decrease in salaries payable Increase in accounts receivable 1. added inflow in the operating activities section Net income 2. subtracted outflow in the operating activities section Cash paid for dividends 3. added inflow in the investing activities section Cash paid for construction of building 4 subtracted outflow in the investing activities section Cash received...
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow...
Determining Net Income from Net Cash Flow from Operating
Activities
Curwen Inc. reported net cash flow from operating activities of
$196,600 on its statement of cash flows for the year ended December
31. The following information was reported in the Cash Flows from
Operating Activities section of the statement of cash flows, using
the indirect method:
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $196,600 on its statement...
Exercise 16-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional...
Exercise 16-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end Information is provided. $1,828,000 991,000 837,000 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $ 245,535 Depreciation expense 44,200 Rent expense 49,600 Amortization expenses-Patents 4,200 Utilities expense 18,125 361,660 475, 340 6,200 481,540 Gain on sale of equipment Net income $ Accounts receivable Inventory $30,500 increase 25,000 increase Accounts payable Salaries...
Accounting Chapter 14 Help Pt.2 Problem 14-10 Prepare a Statement of Cash Flows; Free Cash Flow...
Accounting Chapter 14 Help Pt.2
Problem 14-10 Prepare a Statement of Cash Flows; Free Cash Flow [LO14-1, L014-2, L014-3] Joyner Company's income statement for Year 2 follows Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: $ 713,000 308,000 405,000 216,000 189,000 Gain on sale of equipment Income before taxes Income taxes Net income 6,000 195,000 58,500 $136,500 Its balance sheet amounts at the end of Years 1 and 2 are as follows:...
Exercise 12.6 Indirect: Cash flow from。perations LO P2 Salud Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31. (Amounts to be deducted should be indicated with a minus sign.) Selected Annual Income Statement Data Net income Depreciation expense Gain on sale of machinery Selected Year-End Balance Sheet Data $400,000 Accounts receivable increase 80,000 Prepaid expenses decrease 20,000 Accounts payable increase $40,000...
Exercise 12-6 Indirect: Cash flow from operations LO P2 Salud Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31. (Amounts to be deducted should be indicated with a minus sign.) 16.66 points Selected Annual Income Statement Data Selected Year-End Balance Sheet Data Net income $400,000 Accounts receivable increase $40,000 Depreciation expense 80,000 Prepaid expenses decrease 12,000 Gain on sale of machinery...
Cash Flows from Operating Activities-Indirect Method The income statement disclosed the following items for the year: Depreciation expense $46,000 26,830 Gain on disposal of equipment 287,600 Net income The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $7,160 (4,080) Inventory Prepaid insurance (1,530) (4,860) Accounts payable Income taxes payable 1,530 Dividends payable 1,070 a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the...
Cash Flows from Operating Activities,Indirect Method The income statement disclosed the following items for the year: Depreciation expense $57,600 Gain on disposal of equipment 33,600 Net income 508,000 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable Inventory Prepaid insurance $8,960 (5,120) (1,920) (6,080) 1,410 Accounts payable Income taxes payable Dividends payable 2,200 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the...
Mimos Woodworking Company is preparing its statement of cash flows using the indirect method. During the year, Thomas Woodworking sold equipment for $6490 cash. The net book value of the asset was $4770. Which of the Following statements is true! The gain on sale of $1,720 is shown as a positive cash flow in the financing activities section The cash receipt of $6.490 is shown as a positive cash flow in the investing activities section. The book value of the...
Question 1 (60 points) Match items that appear on the statement of cash flows for the year ended 12/31/2014 with the appropriate presentation on the statement. Decrease in salaries payable Increase in accounts receivable 1. added inflow in the operating activities section Net income 2. subtracted outflow in the operating activities section Cash paid for dividends 3. added inflow in the investing activities section Cash paid for construction of building 4 subtracted outflow in the investing activities section Cash received...
Determining Net Income from Net Cash Flow from Operating
Activities
Curwen Inc. reported net cash flow from operating activities of
$196,600 on its statement of cash flows for the year ended December
31. The following information was reported in the Cash Flows from
Operating Activities section of the statement of cash flows, using
the indirect method:
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $196,600 on its statement...
Exercise 16-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end Information is provided. $1,828,000 991,000 837,000 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $ 245,535 Depreciation expense 44,200 Rent expense 49,600 Amortization expenses-Patents 4,200 Utilities expense 18,125 361,660 475, 340 6,200 481,540 Gain on sale of equipment Net income $ Accounts receivable Inventory $30,500 increase 25,000 increase Accounts payable Salaries...
Accounting Chapter 14 Help Pt.2
Problem 14-10 Prepare a Statement of Cash Flows; Free Cash Flow [LO14-1, L014-2, L014-3] Joyner Company's income statement for Year 2 follows Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: $ 713,000 308,000 405,000 216,000 189,000 Gain on sale of equipment Income before taxes Income taxes Net income 6,000 195,000 58,500 $136,500 Its balance sheet amounts at the end of Years 1 and 2 are as follows:...
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