The chief accountant for Grandview Corporation provides you with
the company’s 2018 statement of cash flows and income statement.
The accountant has asked for your help with some missing figures in
the company’s comparative balance sheets. These financial
statements are shown next ($ in millions).
GRANDVIEW CORPORATION Statement of Cash Flows For the Year Ended December 31, 2018 |
|||||||
Cash Flows from Operating Activities: | |||||||
Collections from customers | $ | 126 | |||||
Payment to suppliers | (43 | ) | |||||
Payment of general & administrative expenses | (33 | ) | |||||
Payment of income taxes | (24 | ) | |||||
Net cash flows from operating activities | $ | 26 | |||||
Cash Flows from Investing Activities: | |||||||
Sale of investments | 80 | ||||||
Cash Flows from Financing Activities: | |||||||
Issuance of common stock | 14 | ||||||
Payment of dividends | (9 | ) | |||||
Net cash flows from financing activities | 5 | ||||||
Net increase in cash | $ | 111 | |||||
GRANDVIEW CORPORATION Income Statement For the Year Ended December 31, 2018 |
||||||
Sales revenue | $ | 140 | ||||
Cost of goods sold | 47 | |||||
Gross profit | 93 | |||||
Operating expenses: | ||||||
General and administrative | $ | 33 | ||||
Depreciation | 25 | |||||
Total operating expenses | 58 | |||||
Operating income | 35 | |||||
Other income: | ||||||
Gain on sale of investments | 20 | |||||
Income before income taxes | 55 | |||||
Income tax expense | 15 | |||||
Net income | $ | 40 | ||||
GRANDVIEW CORPORATION Balance Sheets At December 31 |
|||||||
2018 | 2017 | ||||||
Assets: | |||||||
Cash | $ | 180 | $ | ? | |||
Accounts receivable | ? | 99 | |||||
Investments | — | 60 | |||||
Inventory | 75 | ? | |||||
Property, plant & equipment | 165 | 165 | |||||
Less: Accumulated depreciation | (95 | ) | ? | ||||
Total assets | ? | ? | |||||
Liabilities and Shareholders’ Equity: | |||||||
Accounts payable to suppliers | $ | 54 | $ | 45 | |||
Payables for selling & admin. expenses | 24 | 24 | |||||
Income taxes payable | 37 | ? | |||||
Common stock | 259 | 245 | |||||
Retained earnings | ? | 33 | |||||
Total liabilities and shareholders’ equity | ? | ? | |||||
Required:
1. Calculate the missing amounts.
2. Prepare the operating activities section of
Grandview’s 2018 statement of cash flows using the indirect
method.
alculate the missing amounts. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
|
Prepare the operating activities section of Grandview’s 2018 statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
|
The chief accountant for Grandview Corporation provides you with the company’s 2018 statement of cash flows...
The chief accountant for Grandview Corporation provides you with the company's 2021 statement of cash flows and income statement. The accountant has asked for your help with some missing figures in the company's comparative balance sheets. These financial statements are shown next ($ in millions), $ 101 (40) (26) (17) GRANDVIEW CORPORATION Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Collections from customers Payment to suppliers Payment of general & administrative expenses...
Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Company using the indirect method. 25 points TIGER ENTERPRISES Statement of Cash Flows For the Year Ended December 31, 2018 (5 in thousands) Cash flows from operating activities Net income Adjustments for noncash effects Depreciation expense Changes in operating assets and abilities Decrease in accounts receivable Increase in inventory Increase in prepaid insurance Decrease in accounts payable Decrease in administrative and other payables...
Problem 4-9 (Algo) Statement of cash flows (L04-8] The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2021, appears below: Service revenue Operating expenses Income before income taxes Income tax expense Net income $1,160,000 830,000 330,000 82,500 $ 247,500 The following balance sheet information also is available: 12/31/2021 12/31/2020 Cash $ 441,500 $ 83,000 Accounts receivable 146,000 113,000 Accrued liabilities (for operating expenses) 96,000 73,000 Income taxes payable 23,000 41,000...
The Adams Corporation reported the following income statement for 2018 and comparative balance sheet for 2018 and 2017, along with transaction data for 2018: (Click the icon to view the comparative balance sheet.) (Click the icon to view the income statement.) (Click the icon to view the additional data.) Prepare Adams Corporation's statement of cash flows for the year ended December 31, 2018. Format cash flows from operating activities by the indirect method. (Use a minus sign or parentheses for...
Requirements: 1. Prepare the statement of cash flows for Rabb Corporation for 2017 using the indirect method. 2. Evaluate the company's cash flows for the year. Discuss each of the categories of cash flows in your response. The 2017 and 2016 balance sheets of Rabb Corporation follow. The 2017 income statement is also provided. Rabb had no noncash investing and financing transactions during 2017. During the year, the company sold equipment for $15, 100, which had originally cost $13,500 and...
Problem 4-9 (Algo) Statement of cash flows [LO4-8] The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2021, appears below: Service revenue Operating expenses Income before income taxes Income tax expense Net income $1,200.000 890,000 310.000 73.500 $ 292,500 The following balance sheet information also is available Cash Accounts receivable Accrued liabilities to operating expenses) Income taxes payable 12/91/2021 12/91/2020 $444,500 $ 89,000 158,000 119.000 100,000 79.000 29,000 53,000 In...
MONTGOMERY, INC Statement of Cash Flows (Indirect Method) For Year Ended December 31, 2018 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: Changes in current operating assets and liabilities Depreciation expense Decrease in accounts receivable Decrease in accounts payable Decrease in salaries payable Increase in inventory Net cash used in operating activities Cash flows from investing activities 0) Cash flows from financing activities 0 0 Cash balance at beginning of...
Complete the statement one section at a time, beginning with the cash flows from operating activities. Grand Tree, Inc. Statement of Cash Flows Year Ended December 31, 2018 Grand Tree, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 442,000 Cost of Goods Sold 210,200 Gross Profit 231,800 Operating Expenses Salaries Expense 78,400 Depreciation Expense-Plant Assets 14,700 Other Operating Expenses 11,000 104,100 Total Operating Expenses Operating Income 127.700 Other Income and (Expenses): Interest Revenue 8,300 Interest Expense...
Exercise 21-31 Statement of cash flows;Indirect method [LO21-4, 21-5, 21-6, 21-8] Appendix A Comparative balance sheets for 2018 and 2017. a statement of income for 2018, and additional information from the accounting records of Red, Inc., are provided below. RED, INC. Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2018 2017 Assets Cash $ 37 $ 136 Accounts receivable 229 135 Prepaid insurance 12 Inventory 291 178 Buildings and equipment 386 353 Less: Accumulated depreciation (122) (243)...
Question 2 Prepare a Statement of Cash Flows for the Year Ending December 31, 201? for the Jentayu Corporation from the following Income Statement& Balance Sheet. Jentayu Corporation Income Statement For the Year Ended 31 December, 2018(in RM Millions) RM 600 460 140 Sales (-) Cost of goods sold Gross profits (-) Operating expenses: 20 Selling expenses General & administrative expenses Total operating expenses EBITDA Depreciation expense 15 35 105 30 75 15 60 18 Interest expense EBT Taxes Net...