Please answer number 4 j. Câsh päid out to3. Read the scenario below. Then determine the net cash flows from operating activitiesusing the indirect method.Innovative Apps had a profit of P330 000.00 in 2016. During the year, the entity hada depreciation expense of P70 000.00. Accounts receivable increased by PI10 000.00and accounts payable increased by P50 000.00. The entity started operations in 2016 andthe foregoing are the entity's only current assets and current liabilities.4. Classify each of the following transactions as cash flow from operating activities (O), cashflow from investing activities (I), or cash flow from financing activities (F). Transactionsthat do not affect the CFS should be identified as N/A. Then prepare the CFS.The following transactions pertain to the operations of Happy Events, an eventsplanning company owned by Jessie Natividad. The entity had the following transactionsduring the month:a. Received P180 000.00 cash investment from the ownerb. Provided P400 000.00 services on accountc. Incurred P220 000.00 operating expenses on accountd. Collected P320 000.00 cash from accounts receivablee. Allowed P30 000.00 cash withdrawal to the owner of the businessf. Paid P160 000.00 cash on accounts payableg. Performed services for P30 000.00 cashh. Paid P12 000.00 cash for expenses

The cash flow statement is prepared to record the cash flow from various activities during the…

a. Received P180 000.00 cash investment from the owner bea oiti b. Provided P400 000.00 services on account c. Incurred P220 000.00 operating expenses on account d. Collected P320 000.00 cash from accounts receivable e. Allowed P30 000.00 cash withdrawal to the owner of the business f. Paid P160 000.00 cash on accounts payable g. Performed services for P30 000.00 cash h. Paid P12 000.00 cash for expenses

a. Received P180 000.00 cash investment from the owner bea oiti b. Provided P400 000.00 services on account c. Incurred P220 000.00 operating expenses on account d. Collected P320 000.00 cash from accounts receivable e. Allowed P30 000.00 cash withdrawal to the owner of the business f. Paid P160 000.00 cash on accounts payable g. Performed services for P30 000.00 cash h. Paid P12 000.00 cash for expenses

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 15E

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j. Câsh päid out to 3. Read the scenario below. Then determine the net cash flows from operating activities using the indirect method. Innovative Apps had a profit of P330 000.00 in 2016. During the year, the entity had a depreciation expense of P70 000.00. Accounts receivable increased by PI10 000.00 and accounts payable increased by P50 000.00. The entity started operations in 2016 and the foregoing are the entity's only current assets and current liabilities. 4. Classify each of the following transactions as cash flow from operating activities (O), cash flow from investing activities (I), or cash flow from financing activities (F). Transactions that do not affect the CFS should be identified as N/A. Then prepare the CFS. The following transactions pertain to the operations of Happy Events, an events planning company owned by Jessie Natividad. The entity had the following transactions during the month: a. Received P180 000.00 cash investment from the owner b. Provided P400 000.00…
Using the financial statements and additional information below, prepare a cash flow statement for Papa Ltd for the year ended 31st December 2018 using the indirect method of calculating operating cash flow and write a brief comment on the cash flow for the period. Papa Ltd Statement of Profit or Loss Account for the year ended 31st December 2018 GHC Revenue 540,000 Cost of sales (155,000) Gross profit 385,000 Investment income – interest received 15,000 Loss on disposal of equipment (18,000) Depreciation (94,000) Administrative and selling expenses (25,000) Operating profit before interest 263,000 Interest expense (10,000) Profit before taxation 253,000 Taxation (56,000) Profit after tax 197,000 Statement of financial position as at 31st December 2018 2017 GHC GHC Non-current assets Vehicle at cost 180,000 150,000 Accumulated depreciation (137,000)…
Blossom Company reported net income of $148,500. For 2022, depreciation was $45,100, and the company reported a gain on sale of Investments of $12.100. Accounts recelvable increased $25,100 and accounts payable decreased $23.100. Compute net cash provided by operating activities using the indirect method. Net cash provided by operating activities
Assessment task:Part AReview the existing literature to critically examine the relative information content of theincome statement and the statement of cash flows. Why do investors find both incomestatement and statement of cash flows useful?Part BDownload the annual financial reports of BHP Ltd, Santos Ltd, and Funtastic Ltd for the year2019, 2018 and 2017. Examine the consolidated Cash Flow Statements for each companiesacross three years. Answer the following questions about each of the three cash-flowstatements.1. For each companies [except mentioned otherwise as in c), g) and i) below], across threeyears on the Statement of Cash Flows discuss:a) What are the major sources of cash for each firm? What are the major uses ofcash for each firm?b) What was the trend in cash flow from (continuing) operations for each firm?c) Compare and contrast the cash flow from operations with the net profit after taxin income statement. Explain in detail the major reasons for the differencebetween…
of Take me to the text Squash Incorporated had net income for 2023 of $382,000. Included on the income statement was a loss on sale of equipment of $4,900, a gain on sale of investments of $16,300, depreciation of $7,300, loss on retirement of debt of $10,600, and interest of $3,200. Calculate the net cash provided (used) by operating activities using the indirect method Assume that the balances of current assets (except cash) and current liabilities remain the same as last year. Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in cash. Net cash provided (used) by operating activities $-385400 Check *
From the following Balance Sheets of X Ltd. make out the Cash Flow Statement BALANCE SHEET ADDITIONAL INFORMATION: 1. Depreciation of Rs. 10,000 and Rs. 20,000 has been charged on Plant and land and building respectively in 2018. 2. A dividend of Rs. 20000 has been paid in 2018. 3. Tax of Rs. 35000 has been paid in 2018. Q3. The following is the summarized balance sheet of Michael Ltd. LIABILITIES 2017 2018 ASSETS 2017 2018 Equity Share Capital Preference Share Capital General Reserve Profit and Loss Account Proposed dividend Creditors Bills payable Provision for taxation 300000 150000 40000 30000 42000 55000 20000 40000 400000 100000 70000 48000 50000 83000 16000 50000 Goodwill Land & Building Plant Debtors Stock Bills Receivable Cash in hand Cash at bank 115000 200000 80000 160000 77000 20000 15000 10000 90000 170000 200000 200000 109000 30000 10000 8000 677000 817000 677000 817000
Part AReview the existing literature to critically examine the relative information content of theincome statement and the statement of cash flows. Why do investors find both incomestatement and statement of cash flows useful? Part BDownload the annual financial reports of BHP Ltd, Santos Ltd, and Funtastic Ltd for the year2019, 2018 and 2017. Examine the consolidated Cash Flow Statements for each companiesacross three years. Answer the following questions about each of the three cash-flowstatements.1. For each companies [except mentioned otherwise as in c), g) and i) below], across threeyears on the Statement of Cash Flows discuss:a) What are the major sources of cash for each firm? What are the major uses ofcash for each firm?b) What was the trend in cash flow from (continuing) operations for each firm?c) Compare and contrast the cash flow from operations with the net profit after taxin income statement. Explain in detail the major reasons for the differencebetween these two figures.…
The following information was obtained from Galena Company's Comparative Balance Sheets. Assume Galena Company 2020 Income statement showed depreciation expense of $9,000 and a net income of $60,000. In addition, the Long Term investment account changed due to a sale that resulted in an $11,000 gain. The PPE account changed due to purchase of PPE with $43,000 cash. Prepare the cash flow statement under the Indirect Method. Мaу 31, 2020 Мaу 31, 2019 Cash.. .$19,000 $10,000 Accounts Receivable.. „$45,000 $35,000 Inventory.. $55,000 $49,000 Prepaid Rent.. 000'6$" $7,000 Long Term Investments.. $20,000 $34,000 PPE. $150,000 $107,000 Accumulated Depreciation... .$42,000 $33,000 Accounts Payable.. .$26,000 $20,000 Income Tax Payable.. $4,000 $6,000 Common Stock.. $92,000 $92,000 Retained Earnings. .$134,000 $91,000
REQUIRED Study the statement of cash flows of Mantis Limited for the year ended 31 December 2021 and answer the following questions: Calculate the following for the year ended 31 December 2021: Depreciation Dividends paid Of what significance is this statement of cash flows to the shareholders of Mantis Limited? Comment on the following: Cash flows from operating activities (R181 800) 1.3.2. Increase in inventory (R808 000) Increase in receivables (R606 000) Interest paid (R80 800) Cash flows from investing activities (R2 343 200) INFORMATION MANTIS LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021 R Cash flows from operating activities (181 800) Operating profit 979 700 Depreciation ? Profit before working capital changes ? Working capital changes (808 000) Increase in inventory (808 000) Increase in receivables…
(AACSB) AnalysisYou review a company’s statement of cash flows and find that cash inflows from operations are $150,000,net outflows from investing are $80,000, and net inflows from financing are $60,000. Did the company’scash balance increase or decrease for the year? By what amount? What types of activities would you findunder the category investing activities? Under financing activities? If you had access to the company’sincome statement and balance sheet, why would you be interested in reviewing its statement of cash flows?What additional information can you gather from the statement of cash flows?
Cash Flows from Operating Activities-Indirect Method Imara Andam Business Solutions had a profit of P330,000 in 2020. During the year, the entity had depreciation expense of P70,000. Accounts receivable increased by P110,000 and accounts payable increased by P50,000. The entity started operations in 2020 and the foregoing are the entity's only current assets and current liabilities. Required: Determine the net cash flows from operating activities using the indirect method.
The following table is from the Home Depot Website. Which number should be used for EBIT in order to calculating the component of Operating Cashflows (OCF), for Q1 of 2022 (in millions). THE HOME DEPOT, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS in millions, except per share data Net sales Cost of sales Gross profit Operating expenses: Selling, general and administrative Depreciation and amortization Total operating expenses Operating income Interest and other (income) expense: Interest income and other, net Interest expense Interest and other, net Earnings before provision for income taxes Provision for income taxes Net earnings O 5560 5929 O4145 O 5781 (Unaudited) $ Three Months Ended May 1, 2022 38,908 $ 25.763 13.145 6,610 606 7,216 5,929 (3) 372 369 5,560 1.329 $ 4,231 May 2, 2021 37,500 24,758 12.742 6,374 587 6.961 5,781 (6) 339 333 5,448 1,303 4,145 4