B.C.EFG.H.12 Prepare a Cash Flow Statement using the DIRECT Method.3 DO NOT use the INDIRECT Method4 Not all accounts listed may be used in this example6 Net income$540,0007 Cash December 31, 2020$120,0008 Cash December 31 2020???????9 Depreciation Expense10 Collections from third party$55,000$411,00011 Decrease in accounts payable12 Paid employees$105,000$87,00013 Purchased stock14 Purchased land15 Paid mortgage$22,000$99,000$60,00016 Paid car loan$43,00017 Paid for insurance$11,00018 Patient Receivable$24,000.001920212223A,5.

Cash Flow Statement (Direct Method) Cash Flow from Operating Activities Amount (In $) Amount…

Prepare a Cash Flow Statement using the DIRECT Method. DO NOT use the INDIRECT Method Not all accounts listed may be used in this example Net income Cash December 31, 2020 s Cash December 31 2020 O Depreciation Expense o Collections from third party 1 Decrease in accounts payable 12 Paid employees 13 Purchased stock 14 Purchased land 15 Paid mortgage $540,000 $120,000 ??????? $55,000 $411,000 $105,000 $87,000 $22,000 $99,000 $60,000 16 Paid car loan $43,000 17 Paid for insurance $11,000 18 Patient Receivable $24,000.00 10

Prepare a Cash Flow Statement using the DIRECT Method. DO NOT use the INDIRECT Method Not all accounts listed may be used in this example Net income Cash December 31, 2020 s Cash December 31 2020 O Depreciation Expense o Collections from third party 1 Decrease in accounts payable 12 Paid employees 13 Purchased stock 14 Purchased land 15 Paid mortgage $540,000 $120,000 ??????? $55,000 $411,000 $105,000 $87,000 $22,000 $99,000 $60,000 16 Paid car loan $43,000 17 Paid for insurance $11,000 18 Patient Receivable $24,000.00 10

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter7: Introduction To Financial Statement Analysis

Section: Chapter Questions

Problem 31P

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Prepare a Cash Flow Statement using the DIRECT Method. DO NOT use the INDIRECT Method Not all accounts listed may be used in this example Net income $600,000,00 Cash December 31, 2021 $350,000,000.00 Cash December 31 2022 ??????? Depreciation Expense $1,500,000.00 Collections from third party $1,600,000.00 Decrease in accounts payable $1,700,000.00 Paid employees $1,800,000.00 Purchased stock $1,900,000.00 Purchased land $2,000,000.00 Paid mortgage $3,000,000.00 Paid expansion loan $4,000,000.00 Paid for insurance $1,100,000.00 Patient Receivable $7,000,000.00
M57 E G H. A 58 Prepare a Cash Flow Statement using the Indirect Method. 59 DO NOT use the DIRECT Method 60 Not all accounts listed may be used in this example 61 62 Net income $1,500,000 63 Cash December 31, 2018 $750,000 64 Cash December 31 2019 ??????? 65 Depreciation Expense 66 Increase in inventory 67 Decrease in accounts payable $20,000 $15,000 $32,000 68 Increase in Prepaid insurance $31,000 69 Purchased stock $22,000 70 Purchased Jand $99,000 71 Paid mortgage $60,000 72 Paid car loan $43,000 73 Increase in wages payable $11,000 74 Patient Receivable $24,000.00 75 76 77 78 79 57
Part VI Prepare a Cash Flow Statement using the DIRECT Method. DO NOT use the INDIRECT Method Not all accounts listed may be used in this example Net income $600,000,00 Cash December 31, 2021 $350,000,000.00 Cash December 31 2022 ??????? Depreciation Expense $1,500,000.00 Collections from third party $1,600,000.00 Decrease in accounts payable $1,700,000.00 Paid employees $1,800,000.00 Purchased stock $1,900,000.00 Purchased land $2,000,000.00 Paid mortgage $3,000,000.00 Paid expansion loan $4,000,000.00 Paid for insurance $1,100,000.00 Patient Receivable $7,000,000.00
P Flag question According to the information given in the table below, which of the following is cash flow from operating activities? Net income 86,000 Deprecation 31,500 Increase in ACcounts Receivable 18,600 Decrease in Inventory 14,300 Increase in Accounts Payable 24,600 Select one: a. 146400 b. 137800 C. 148200 d. 152600 Next page Previous page
EA7. LO 16.3 Use the following information from Chocolate Company's financial statements to determine operating net cash flows (indirect method). Income Statement Balance Sheet Sales Cost of Goods Sold Salaries Expense Depreciation Expense Net Income Accounts Receivable decrease Merchandise Inventory increase Salaries Payable increase $ 98,500 (62,000) (18,000) (9,000) 9,500 $2,000 1,600 450
LO 7 CASH FLOW Timing and Cash Flows SE12. BUSINESS APPLICATION Use the T account for Cash below to record the por- tion of each of the following transactions, if any, that affect cash. How do these transac- tions affect the company's liquidity? Cash Jan. 2 Provided services for cash, $2,400. Paid expenses in cash, $1,400. 4 8 Provided services on credit, $2,200. 9 Incurred expenses on credit, $1,600.
PB4. LO 16.3 Use the following information from Isthmus Company's financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018. Dec. 31, 2018 Dec. 31, 2017 Cash Account Receivable Inventory Accounts Payable Salaries Payable $295,000 45,300 92,200 23,000 1,700 $259,000 48,700 91,000 26,300 1,500 Additional information: Net income 45,200 33,300 Depreciation expense
LO3 19 Prepare operating cash flows under the direct method The following information is provided for the Hildebrand Company: Balances at 30 June 2021 2020 Accounts Receivable $ 2500 $ 1 500 Inventory 26 000 32 000 Maintenance Supplies 2 000 1 000 Accounts Payable 4 000 3 000 Taxes Payable 2 000 3500 Interest Payable 1500 2 500 2021 income statement Revenue $80 000 Cost of goods sold 55 000 Gross profit 25 000 General and administrative expense 6000 Depreciation expense 2 000 Total operating expenses 8 000 Profit before interest and tax 17 000 Interest expense 4 000 Profit before income tax 13 000 Income tax expense 4 000 Profit after income tax $ 9000 REQUIRED Prepare the operating activities section of the statement of cash flows using the direct method. Prepare the reconciliation of profit after income tax to net cash inflow from operating activities.
Exercise 16-18B (Algo) Direct: Computing cash flows LO P5 Case X: Case Y: Compute cash received from customers Sales Accounts receivable, Beginning balance Accounts receivable, Ending balance Compute cash paid for rent Rent expense Rent payable, Beginning balance Rent payable, Ending balance < Case Z: Compute cash paid for inventory Cost of goods sold Inventory, Beginning balance Accounts payable, Beginning balance Inventory, Ending balance Accounts payable, Ending balance $ 640,000 28,000 38,640 $ 118,000 7,050 5,922 $ 577,000 178,870 75,125 146,673 93,155 For each of the above three separate cases, use the information provided about the current-year operations of Sahim Company to compute the required cash flow information. Assume all purchases and sales of inventory are on credit. ces Case X: Cash received from customers Case Y: Cash paid for rent Case Z: Cash paid for inventory
Problem 17-10 Marin, Inc. had the following equity investment portfolio at January 1, 2020. 960 shares @ $15 each 860 shares @ $19 each $14,400 16,340 Evers Company Rogers Company Chance Company Equity investments @ cost Fair value adjustment Equity investments @ fair value 480 shares @ $8 each 3,840 34,580 (7,780 ) $26,800 During 2020, the following transactions took place. On March 1, Rogers Company paid a $2 per share dividend. On April 30, Marin, Inc. sold 300 shares of Chance Company for $12 per share. On May 15, Marin, Inc. purchased 110 more shares of Evers Company stock at $16 per share. At December 31, 2020, the stocks had the following price per share values: Evers $17, Rogers $18, and Chance $7. 1. 2. 3. 4. During 2021, the following transactions took place. On February 1, Marin, Inc. sold the remaining Chance shares for $7 per share. On March 1, Rogers Company paid a $2 per share dividend. On December 21, Evers Company declared a cash dividend of $3 per share to be paid in…
EZ CASH FLOW CASH ACCOUNTS PAYABLE JOHNSON CAPITAL CASH 82.000 F 100.000 20.000 I 4.000 3.000 100.000 АСCTSREC 15.000 15.000 10.000 O 10.000 106.000 9.000 EQUIP 3.000 F 6.000 ACC DEPR 82.000 ACCTSPAY 6.000 EXPENSES REVENUE J CAP ACCOUNTS RECEIVABLE CLOSING: 20.000 20.000 3.000 30.000 REV 27.000 15.000 REVENUE 30.000 EXP EXPENSES 20.000 27.000 DEPR EXP 15.000 DEPR EXPENSE 1.000 82.000 48.000 J CAPITAL 9.000 DEPRECIATION EXPENSE EQUIPMENT 1.000 1.000 20.000 20.000 Note: enter the drawing as a debit to the capital account. There are three types of cash flows: ACCUM. DEPR EQ. 1 OPERATING: cash flows from revenues and expenses. 1.000 1.000 2 INVESTINIG: cash flows from purchasing or selling assets. 3 FINANCING: cash flows from owner's investment or withdrawals. CASH FLOW STATEMENT TRANSACTIONS-Using your pencil, write each debit and credit into the T-accounts above. Cash Flows from Operations 1 Sally Johnson invested $100,000 in her business, Sally's Consulting. 2 Sally purchased equipment…
3 ook rences Exercise 16-21B (Algo) Direct: Preparing statement of cash flows and supporting note LO P5 Cash and cash equivalents, December 31 prior year-end Cash and cash equivalents, December 31 current year-end Cash received as interest Cash paid for salaries Bonds payable retired by issuing common stock (no gain or loss on retirement) Cash paid to retire long-term notes payable Cash received from sale of equipment Land purchased by issuing long-term notes payable Cash paid for store equipment Cash dividends paid Cash paid for other expenses Cash received from customers Cash paid for inventory FERRON COMPANY Statement of Cash Flows For Year Ended December 31 Use the above information about Ferron Company to prepare a complete statement of cash flows (direct method) for the current year ended December 31. Use a note disclosure for any noncash investing and financing activities. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities $…