Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 13.35AP
1.
To determine
To prepare: The statement of cash flows for the company for the year ended March 31, 2017, using the indirect method for operating cash flows.
2.
To determine
To prepare: The schedule of cash flows from operations using the direct method.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
(Learning Objectives 1, 7: Show how to speed up cash flow from receivables;evaluate liquidity using ratios) The comparative financial statements of Diamond Pools, Inc.,for 2020, 2019, and 2018 included the following select data:Balance sheetCurrent assets:Cash...............................................Investment in trading securities......Receivables, net of allowancefor uncollectible accounts of $7,$6, and $4, respectivelyInventories .....................................Prepaid expenses............................Total current assets........................Total current liabilities.......................Income statementNet sales (all on account)...................(In millions)2020$ 9015027034050$ 900$ 550$7,7002019$ 9518028035540$ 950$ 640$5,3552018$ 6011523032535$ 765$ 650$4,745Requirements1. Compute the following ratios for 2020 and 2019:a. Current ratiob. Quick (acid-test) ratioc. Days’ sales outstanding2. Which ratios improved from 2019 to 2020 and which ratios deteriorated?…
E1-24A. (Learning Objective 4: Construct a balance sheet) At December 31, 2018, LandyProducts has cash of $24,000, receivables of $18,000, and inventory of $80,000. The company’sequipment totals $182,000. Landy owes accounts payable of $22,000 and long-term notespayable of $172,000. Common stock is $34,500. Prepare Landy’s balance sheet at December 31,2018, complete with its proper heading. Use the accounting equation to compute retainedearnings.
3-28A. (Learning Objective 6: Analyze and evaluate liquidity and debt-paying ability)Peyton Company reported these ratios at December 31, 2018 (dollar amounts in millions):Current ratio = $20 = 2.00 $10$70 Debt ratio = = 0.57 $40Peyton Company completed these transactions during 2019:a. Purchased equipment on account, $5b. Paid long-term debt, $5c. Collected cash from customers in advance, $4d. Accrued interest expense, $3e. Made cash sales, $7Determine whether each transaction improved or hurt the company’s current ratio and debt ratio.
Chapter 13 Solutions
Managerial Accounting (5th Edition)
Ch. 13 - (Learning Objective 1) Which of the following is...Ch. 13 - Prob. 2QCCh. 13 - Prob. 3QCCh. 13 - Prob. 4QCCh. 13 - Prob. 5QCCh. 13 - Prob. 6QCCh. 13 - Prob. 7QCCh. 13 - Prob. 8QCCh. 13 - Prob. 9QCCh. 13 - (Learning Objective 3) Which one of the following...
Ch. 13 - Prob. 13.1SECh. 13 - Prob. 13.2SECh. 13 - Prob. 13.3SECh. 13 - Prob. 13.4SECh. 13 - Prob. 13.5SECh. 13 - Calculate financing cash flows (Learning...Ch. 13 - Prob. 13.7SECh. 13 - Prob. 13.8SECh. 13 - Prob. 13.9SECh. 13 - Prob. 13.10SECh. 13 - Prob. 13.11SECh. 13 - Prob. 13.12AECh. 13 - Prob. 13.13AECh. 13 - Prob. 13.14AECh. 13 - Calculate operating cash flows (indirect method)...Ch. 13 - Prob. 13.16AECh. 13 - Prob. 13.17AECh. 13 - Prob. 13.18AECh. 13 - Prob. 13.19AECh. 13 - Prob. 13.20AECh. 13 - Classify sustainable activities effect on cash...Ch. 13 - Prob. 13.22BECh. 13 - Prob. 13.23BECh. 13 - Prob. 13.24BECh. 13 - Calculate operating cash flows (indirect method)...Ch. 13 - Prob. 13.26BECh. 13 - Prob. 13.27BECh. 13 - Prob. 13.28BECh. 13 - Prob. 13.29BECh. 13 - Prob. 13.30BECh. 13 - Classify sustainable activities effect on cash...Ch. 13 - Prob. 13.32APCh. 13 - Prepare statement of cash flows (indirect method)...Ch. 13 - Prob. 13.34APCh. 13 - Prob. 13.35APCh. 13 - Prob. 13.36BPCh. 13 - Prepare statement of cash flows (indirect method)...Ch. 13 - Prob. 13.38BPCh. 13 - Prob. 13.39BPCh. 13 - Prob. 13.40SCCh. 13 - Discussion Analysis A13-41 Discussion Questions...Ch. 13 - Prob. 13.42ACTCh. 13 - Ethics involved with statement of cash flows...Ch. 13 - Prob. 13.44ACTCh. 13 - Prob. 13.45ACT
Knowledge Booster
Similar questions
- S3-2. (Learning Objective 1: Explain how accrual accounting differs from cash-basisaccounting) Portage Corporation began 2018 owing notes payable of $4.0 million. During2018, Portage borrowed $1.9 million on notes payable and paid off $1.7 million of notespayable from prior years. Interest expense for the year was $1.1 million, including $0.2 millionof interest payable accrued at December 31, 2018.Show what Portage should report for these facts on the following financial statements:1. Income statement for 2018a. Interest expense2. Balance sheet as of December 31, 2018a. Notes payableb. Interest payablearrow_forwardcourses/ The cash balance of Saadah Company is 32700 OMR at the beginning of the year. The cash flows during the year are given as follows; Operating cash inflow: 37800 Financing cash inflow: 22300 Investing outflow: 29000 Which of the following is the cash balance at the end of the year. Select one: O a. 64000 Ob. 121800 Oc. 68300 O d. 63800 Clear my choicearrow_forwardPreparation of SCF for a Single Proprietorship Instructions: Prepare a Statement of Cash Flows for the year ended December 31,2020 the using the following account titles listed. Use the Direct Method. You may use any desired business name. Use the space provided for your answer. Cash from Clients – 450,000 Cash Payment for merchandise – 410,500 Cash receipt from additional investment of owner – 114,450 Cash receipt from sale of equipment - 15,000 Cash withdrawal by the owner – 80,000 Cash, January 1, 2020 - 120,000 Credit sales – 35,000 Depreciation expense – 15,410 Paid loan from a bank - 111,000 Payment to interest expense – 10,000 Payment to suppliers – 20,000 Payment to utilities – 30,000 Payments to Employees – 14,800arrow_forward
- PROBLEM: Tagaytay Company's summary of cash records show the following for the year 2022, its first year of operation: CASH Transactions Debit Credit Cash receipts 1,280,000 Cash Disbursements 825.000 December 31 balances 455.000 You are contacted by the management to compute its net income using the accrual basis of accounting. During the process of preparation, the following were identified by you that will impact your computation: 1. Property, plant and equipment are depreciated on a straight line basis. Annual depreciation is P 105,000. 2. Prepaid insurance of P 18,000 was recognized as expense when it was paid. P 12,000 of the balance relates to year 2023. 3. The entire amount of P 120,000 which was received as advance rental for office space in its building was recognized as rent income when received. P 70,000 of the amount will be earned in 2023. 4. Employees are due P 28,000 at the end of 2022. 5. Uncollected interest from investment at the end of 2022 is P 31.700. 6. It is…arrow_forwardrepare a statement of cashflows uusing the indirect method. Accountants for Putterham, Inc. have assembled the following data for the year ended December 31, 2018: 2018 2017 Current Assets: Cash $ 99,400 $ 25,000 Accounts Receivable 64,100 69,700 Merchandise Inventory 83,000 75,000 Current Liabilities: Accounts Payable 57,600 55,200 Income Tax Payable 14,800 16,800 Transaction Data for 2018: Issuance of common stock for cash $ 38,000 Payment of notes payable $ 46,100 Depreciation expense 24,000 Payment of cash dividends 50,000 Purchase of equipment with cash 74,000 Issuance of notes payable to borrow cash 62,000 Acquisition of land by issuing long-term notes payable 119,000 Gain on sale of building 4,500 Book value of building sold 54,000 Net income 68,500 Prepare Putterham’s statement of cash flows using the indirect method.…arrow_forwardSagada Company's summary of cash records show the following for the year 2022, its first year of operation: CASH: Cash receipts - debit, P 3,840,000 Cash disbursements - credit, P 2,475,000 December 31 balance, P 1,365,000 You are contacted by the management to compute its net income using the accrual basis of accounting. During the process of preparation, the following were identified by you that will impact your computation: Property, plant and equipment are depreciated on a straight line basis. Annual depreciation is P 630,000. Prepaid insurance of P 108,000 was recognized as expense when it was paid. One-thirds of the balance is for year 2023. The entire amount of P 1,080,000 which was received as advance rental for office space in its building was recognized as rent income when received. Twenty five percent of the amount will be earned in 2023. Employees are due P 162,000 at the end of 2022. Uncollected interest from investment at the end of 2022 is P 190,200. It is estimated that…arrow_forward
- Use the following excerpts from Brownstone Company's financial statements and complete the worksheet below to determine cash received from customers in 2018. From Balance Sheets Accounts Receivable Dec. 31, 2018 $ 25,000 Dec. 31, 2017 $20,000 2018 220,000 From Income Statement: Sales PLEASE NOTE: You are to follow the format shown in the textbook. Cash Collected from Sales Revenue [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ]arrow_forwardExamine the Statement of Cash flows and the accompanying notes to the financial statements found in the Annual Report that you have downloaded for Question 2. Required: Comment on the company’s cash flows for the latest period. The write-up must not exceed 400 words.arrow_forward1. Prepare a Classified Statement of Assets & Liabilities as at 30th June 2023 Cash receipts and payments for the year ended 30th June 2023: Cash Receipts: Subscriptions 11,000 Bar sales Hire of function room $ Bank Bar inventory 30,000 5,300 Assets & Liabilities as at $46,300 Subscription in arrears Subscription in advance Bar equipment - at cost Accumulated depreciation bar equipment Bank Loan (Due 30/6/17) Accounts payable (bar) Accrued bar wages Prepaid rent expense Cash Payments: Bar purchases 12,000 Payments to accounts payable Telephone Insurance Cleaner's wages Electricity Bar wages Bank Loan interest Rent paid 1 July 2022 15,000 2,600 220 800 35,000 5,000 16,000 1,000 O 0 $ ? 6,000 900 1,200 1,500 800 5,000 2,900 10,000 $40,300 30 June 2023 2,400 880 270 35,000 6,000 16,000 2,000 100 500arrow_forward
- ory Bookmarks Profiles Tab YouTube Mc Graw Hill ation.com/ext/map/index.html?_con=con&external_browser=0&launch Url=https%253A%252F%252FI... Classes N Netflix Dashboard EDU 1011 (2019-F... G Annotated Bibliog... 1 Required information [The following information applies to the questions displayed below.] 10 Q A Expenses prior years follow. Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and S (2 LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net income 2 2 At December 31 Accounts receivable Inventory Accounts payable Salaries payable SOF Utilities payable Prepaid insurance Prepaid rent W S # Window Help 3 LANSING COMPANY Selected Balance Sheet Accounts 20 F3 □ (20 (2 E D $ 4 $ 127,200 Current Year $ 6,600 2,980 5,400 1,080 OOD DOD F4 52,000 17,000 28,000 10,000 R 4,800…arrow_forwardccClassify each cash transaction between Operating (O), Investing (I), or Financing (F) activities using the following data: __Cash at the beginning of the year: $650,000 Cash Receipts from: __Bank (Interest on CD) $6,000 __Customers Sales $872,000 __Interest $33,000 __Dividends $3,600 Cash payments for: __Dividends $2,500 __Raw Materials $ 3,800 __Wages Expense $4,000 __Land $10,000 __Interest $4,000arrow_forwardE3-39B. (Learning Objective 6: Analyze and evaluate liquidity and debt-paying ability) BurnesConsulting Company reported these ratios at December 31, 2018 (dollar amounts in millions):Current ratio = $20 = 2.00 $10 $60 Debt ratio = = 0.50 $30Burnes Consulting completed these transactions during 2019:a. Purchased equipment on account, $4b. Paid long-term debt, $7c. Collected cash from customers in advance, $5d. Accrued interest expense, $6e. Made cash sales, $8Determine whether each transaction improved or hurt the company’s current ratio and debt ratio.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub