The following relates to the composition of cashflows of Company P and Company Q.Other than this, both companies are similar in most aspects.Company PNet cash flows from:2022 ($)2021 ($)Company Q2022 ($) 2021 ($)Operating activities(45,000)18,000135,00063,000Investing activitiesProceeds from sale ofoperating assetsPurchase of operating assetsFinancing activities63,000(72,000)(36,000)Proceeds from borrowings27,0009,000Repayment of debts(18,000)Net cash flows45,000 27,00045,00027,000Examine the cashflows of both companies. Which is stronger financially?

Company P: Negative operating cash flows of $45,000 in 2022. Positive operating cash flows of…

Answered: The following relates to the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 6EB: Use the following excerpts from Indigo Companys balance sheets to determine net cash flows from...

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Preparing a Statement of Cash Flows Volusia Company reported the following comparative balance sheets for 2019: Required: Prepare a statement of cash flows for Volusia using the indirect method to compute net cash flow from operating activities.
Use the following information from Birch Companys balance sheets to determine net cash flows from operating activities (indirect method), assuming net income for 2018 of $122,000.
Use the following information from Isthmus Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.
Use the following excerpts from Indigo Companys balance sheets to determine net cash flows from operating activities (indirect method), assuming net income for 2018 of $225,000.
Refer to the information for Cornett Company above. What amount should Cornett report on its statement of cash flows as net cash flows provided by investing activities? a. $(5,200) b. $55,200 c. $144,800 d. None of these
Use the following information from Eiffel Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.
Problem 4: Following are the comparative statements of financial position of CPA Company to add in preparing a statement of cash flows: ● CPA Company Statement of Financial Position December 31, 2021 and 2020 Assets Cash and cash equivalents Financial assets at FVPL Accounts receivable Inventory Long-term investments Property, plant and equipment Less: accumulated depreciation Patents Less: accumulated amortization Total assets Liabilities and Equity Accounts payable Income tax payable 12% bonds payable Less: discount on bonds payable Ordinary share capital Retained earnings The following events took place in 2021: 2021 P900,000 2020 P620,000 300,000 400,000 1,956,500 1,445,000 3,050,000 3,200,000 1,000,000 1,250,000 9,000,000 8,000,000 (2,200,000) (2,000,000) 600,000 600,000 (100,000) P14,606,500 P13,415,000 P2,200,000 P1,900,000 34,500 45,000 4,000,000 4,000,000 (250,000) (300,000) 7,500,000 6,500,000 1,122,000 1,270,000 P14,606,500 P13,415,000 CPA Company declared and paid cash…
Smith Enterprises reports the following information: Net income Depreciation expense Increase in accounts payable Increase in accounts receivable $5240000 O $5790640. O $4063360. O $6416640. O $5240000. 712640 151000 313000 Smith should report cash provided by operating activities of
Cinq Six Corporation provided the following comparative statenient of financial position and additional information necessary for the preparation of a statement of cash flows for the year ended December 31, 2021. Accounts 2021 2020 P880,000 950,000 1,100,000 60,000 2,000,000 (540,000) 500,000 Cash P1,150,000 820,000 1,180,000 40,000 4,000,000 (880,000) 450,000 P6,760,000 P4,950,000 Accounts Receivable Inventory Prepaid Expenses Property, Plant and Equipment Accumulated Depreciation Patent Total Accrued Expenses Accounts Payable Note Payable – 60-day loan Note Payable – 5-year loan Share Capital Share Premium P120,000 540,000 600,000 1,000,000 3,000,000 700,000 1,040,000 P110,000 600,000 800,000 2,500,000 200,000 740,000 Retained Earnings Treasury Shares Total (240,000) 6,760,000 4,950,000 Additional Information during 2021: • The net income for the year is P1,000,000. • Cash dividend of P700,000 is declared and paid. • Equipment is purchased for cash amounting to P2,000,000. • All…
Extract from the statement of financial position as at 30 June 2021 30 June 2021 30 June 2020 R R Inventories 302 000 292 000 Trade receivables 690 000 720 000 Trade payables 400 000 385 000 Taxation payable 75 000 60 000 Prepaid expenses 8 000 2 000 Accrued expenses 84 000 88 000 Required: Prepare only the "Cash generated by operations" section of the statement of cash flows for the year ended 30 June 2021, using the indirect method
FDN Trading has the following information in 2022: Net cash used in financing activities, P897,000 Net cash used in investing activities, P2,500,000 Cash balance, January 1, 2022, P2,200,000 Cash balance, December 31, 2022, P2,100,000 How much is the net cash provided by operating activities that should be presented on the Statement of Cash Flows?
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. What is the net cash flows from operating activities for 2018? Cash Account Receivable Inventory Accounts Payable Salaries Payable Additional information: Net income Depreciation expense $77,600 $45,200 $11,900 $36,000 Dec. 31, 2018 $295,000 45,300 92,200 23,000 1,700 45,200 33,300 Dec. 31, 2017 $259,000 48,700 91,000 26,300 1,500

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