CP 14–8 Assume the following income statement and balance sheet information:
Service revenue (all cash) $175
Operating expenses Salaries (all cash)$ 85
Net income $90
2020 2019
Current assets
Cash $1,250 $1,600
Short‐term invest. 100 200
$1,350 $1,800
Liabilities
Borrowings 600 1,000
Stockholders’ equity
Common stock 200 300
Retained earnings 550 500
750 800
$1,350 $1,800
Other information: The short‐term investments are riskless and will be converted to a known amount of cash in 60 days. Borrowings are non-current. No gain or loss occurred when common stock was repurchased.
Required:
1. Calculate cash flow from operating activities
2. Prepare the 2020 statement of changes inequity
3. Calculate cash flow from financing activities.
4. (Appendix) Prepare a cash flow table. Show that cash effects net to a $450 outflow
1) Cash flow from operating Activities :- (indirect method) Particulars Net Income Amount $ 90 Add: Non-operating expenses nil less :- Non-operatng Incomes /Gains nil 90 Add :- Decrease in current Assets/Increase in current Liabilities Less: - Increase in current Assets / Decrease in Current Liabiities nil nil Net cash flow from operating Activities 90
2) Statement of Change in Equity shareholder's Particulars Amount $ Issue of Any shares nil Less:- Redempton of common stock (300-200) -100 Add: Profit on Retained Earnings (550-500) 50 Net changed in Euity -50
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4) Cash flow Table on net effect used of cash $ 450 Particulars Amount $ Net cash used from financing Acrtivities -450 Net cash flow from Investing Activities sales from short-term investment (200-100) 100 Net Cash Add:- opening cash balance (2019) 350 1600 Closing cash (2020) 1250
$90
2020 2019
Current assets
Cash $1,250 $1,600
Short‐term invest. 100 200
$1,350 $1,800
Liabilities
Borrowings 600 1,000
Stockholders’ equity
Common stock 200 300
Retained earnings 550 500
750 800
$1,350 $1,800
Other information: The short‐term investments are riskless and will be
converted to a known amount of cash in 60 days. Borrowings are non‐
current. No gain or loss occurred when common stock...
Homework: Chapter 16 Calculator Print Item Use the following information from Berlin Company's financial statements. Dec. 31, 2018 Dec 31, 2017 Assets Cash $30,000 $24,000 12.000 Accounts Receivable 10,000 Prepaid Assets 1,000 1,200 $41,200 Total Assets $37,000 Liabilities and Equity Accrued Liabilities 1,700 1,800 Common Stock 33,000 35,000 Retained Earnings 6,500 200 Total Liabilities and Equity $41,200 $37,000 Additional Information: Net Income $5,800 Dividends Pald -500 Prepare the operating activities section of the statement of cash flows (Indirect method) for...
! Required information (The following information applies to the questions displayed below.] Milea Inc. experienced the following events in Year 1, its first year of operations: 1. Received $12,500 cash from the issue of common stock. 2. Performed services on account for $45,000. 3. Paid the utility expense of $1,000. 4. Collected $35,670 of the accounts receivable. 5. Recorded $8,750 of accrued salariés at the end of the year. 6. Paid a $1,350 cash dividend to the stockholders. Prepare the...
E7.14 Cash Flow Statement Conversion The Luh Company's 2020 cash flow statement appears below. LO in its functional currency. New Taiwan dollars (NTS). NT$100.000 45,000 (4,000) 24,000 (32,000) 133,000 THE LUH COMPANY Statement of Cash Flows For Year Ended December 31, 2020 (in millions) Operating Activities Net income................. Depreciation and amortization expense. ... Gain on sale of long-term investments ......... Decrease in other current operating assets.... Decrease in current operating liabilities... Cash provided by operating activities ........ Investing Activities Acquisition...
m 1 of 2 Required information Problem 14-7 Prepare a statement of Cash Flows [LO14-1, L014-2] {The following information applies to the questions displayed below] Comparative financial statements for Weaver Company follow Weaver Company Comparative Balance Sheet at December 31 This OOK Last $ 11 308 $ 12 228 156 o erence 484 506 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Les accumulated depreciation Net property, plant, and equipment Long-term investments Total assets...
Complete the following using the information from the
Study Questions and Problems at the end of Chapter 4, on pages 191
- 192, as indicated below:
Question 4.5 - Using the information in the
problem on pages 191 - 192, you will provide whether the items
listed in (a) through (l) are included in investing or financing
activities
Question 4.6 - Using the information in the
problem on page 192, you will provide whether the current assets
and liabilities listed...
Use Walmart’s income statement and cash flow statement for the
year ending January 31, 2020 to calculate Walmart’s free cash flow.
Continue to assume that the tax rate was 21 percent and that
deferred taxes relate to operating activities
Walmart's Cash Flow Statement for 2020 Consolidated net income Depreciation and amortization Deferred income expense (Gains) losses on disposals of assets and businesses, net Other operating (income) expense, net Decrease increase) in accounts receivable Decrease increase) in inventories Increase/(decrease) in accounts...
For the Year Ended December 31, 2020 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities: Net cash flow from operating activities Cash Flows from Investing Activities Net cash flow from investing activities Cash Flows from Financing Activities Net cash flow from financing activities Cash at the beginning of the period Cash at the end of the period The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided...
Required information
[The following information applies to the questions
displayed below.]
Milea Inc. experienced the following events in 2018, its first
year of operations:
Received $15,500 cash from the issue of common stock.
Performed services on account for $45,000.
Paid the utility expense of $1,300.
Collected $31,530 of the accounts receivable.
Recorded $8,700 of accrued salaries at the end of the
year.
Paid a $1,250 cash dividend to the stockholders.
Prepare the income statement. MILEA INC. Income Statement For the...
FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 49,800 65,810 275,656 1,250 392,516 157,500 (36,625) $513,391 $ 73,500 50,625 251,800 1,875 377,800 108,000 (46,000) $439,800 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity...