Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 13, Problem 13.32AP
To determine
To prepare: The statement of
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Below are the most recent balance sheets for Country Kettles, Incorporated. Excluding
accumulated depreciation, determine whether each item is a source or a use of cash,
and the amount. (Input all amounts as positive values.)
Assets
Cash
COUNTRY KETTLES, INCORPORATED
Balance Sheets
2019
$ 30,900
70,400
61,300
152,000
46,320
Accounts receivable
Inventories
Property, plant, and equipment
Less: Accumulated
depreciation
Total assets
Liabilities and Equity
Accounts payable
Accrued expenses
Long-term debt
Common stock
Item
Cash
Accounts receivable
Inventories
Property, plant, and equipment
Accounts payable
$ 47,540
6,020
26,100
28,750
21,000
25,500
Accumulated retained earnings 169,000 170,610
Total liabilities and equity
$ 268,280 $278,420
Accrued expenses
Long-term debt
Common stock
Accumulated retained earnings
2020
$ 30,040
73,480
$ 268,280 $278,420
$ 45,400
6,780
63,500
161,800
50,400
Source/Use
Amount
Refer to the financial statements of The Home Depot in Appendix A at the end of this book, ordownload the annual report from the Cases section in the Connect library.Required:1. Which of the two basic reporting approaches for the cash flows from operating activities didThe Home Depot use?a. Direct b. Indirect2. What amount of income tax payments did The Home Depot make during the year endedFebruary 2, 2014?a. $639 million c. $3,082 millionb. $2,839 million d. $12 million3. In the fiscal year ended February 2, 2014, The Home Depot generated $7,628 millionfrom operating activities. Indicate where this cash was spent by listing the two largest cashoutflows.a. Amortization ($1,757 million) and Capital Expenditures ($1,389 million)b. Share Repurchase ($8,546 million) and Capital Expenditures ($1,389 million)c. Amortization ($1,757 million) and Share Repurchase ($8,546 million)d. Dividends ($2,243 million) and Share Repurchase ($8,546 million)
Your goal is to prepare a Statement of Cash Flows within the problem noted below. In the Excel Template provided, you will find the Balance Sheet of Marina Comp for December 31, 2013. In addition to the information on the Balance Sheet, we are presented with the following additional data related to current year operations: 1. Net income for the year 2013, $66,000. 2. Depreciation on plant assets for the year, $12,700. 3. Sold the long-term investments for $28,000 (assume gain or loss is ordinary). 4. Paid dividends of $25,000. 1 / 2 5. Purchased machinery costing $21,500, paid cash. 6. Purchased machinery and gave a $60,000 long-term note payable. 7. Paid a $40,000 long-term note payable by issuing common stock.
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
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- Use the information provided below to prepare the Cash Flow Statement of Chelsea Limited for the year ended 31 December 2021 using the answer template provided (see images) Additional information: (See images)¦ Selling and administrative expenses include depreciation as follows:Depreciation on buildings R96 000Depreciation on plant and machinery R160 000¦ There were purchases but no disposals of property, plant and equipment for the financial year ended 31 December2021.¦ Total dividends for the year ended 31 December 2021 and 31 December 2020 amounted toR288 000 and R388 000 respectively.¦ Inventories on 31 December 2019 amounted to R560 000.¦ All purchases and sales of inventories were on credit.¦ The number of shares in issue was 400 000.¦ Credit terms from creditors are 90 days.arrow_forward2. Use the following excerpts from Fromera Company's financial information to prepare the operating section of the statement of cash flows (indirect method) for the year 2018. https://opentextbc.ca 2018 Financial Statement 299,000 135,000 Sales Cost of goods sold Operating expenses, other than depreciation expense Depreciation expense Gain on sale of plant assets 27,000 17,000 16,500 136,500 Net Income Dec. 31, 2017 43,400 1,800 21,250 1,150 Dec. 31, 2018 45,300 1,600 22,500 900 Accounts receivable Inventory Accounts payable Accrued liabilities 3. Using the data in No. 2, compute the following: a. Current cash debt coverage ratio b. Free Cash Flowarrow_forwardIf Marigold Imports Corporation realizes a gain of $96000 on a cash sale of a building having a book value of $708000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is $612000. $708000. $804000. $96000.arrow_forward
- Determining Cash Flows from Investing Activities Burns Companys 2019 and 2018 balance sheets presented the following data for equipment: During 2019, equipment costing $41,000 with accumulated depreciation of $36,700 was sold for cash, producing a $3,200 gain. Required: 1. Calculate the amount of depreciation expense for 2019. 2. Calculate the amount of cash spent for equipment during 2019. 3. Calculate the amount that should be included as a cash inflow from the disposal of equipment.arrow_forwardYou Can Do It! PRACTICE EXERCISE 3: EVALUATION: Compute net cash flows from operating activities under indirect method using the following information. Net income: P192,500 Depreciation expense: P62,500 Amortization of intangible assets: P20,000 Gain on sale of equipment: P45,000 | Loss on sale of investments: P17,500 Beginning P190,000 P287,500 P5,000 P205,000 Accrued expenses payable P77,500 ending P167,500 P251,500 P11,000 P189,500 P90,000 Accounts receivable Inventory Prepaid expenses Accounts Payablearrow_forwardUsing the Exhibit below, assume that the depreciation expense on the Income Statement for the year was $38,000. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of depreciation expense on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of assets (XXX) Changes in current operating assets and liabilities:…arrow_forward
- Use the following information from Dubuque Company's financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018: 2018 Income Statement Balance Sheets Sales Cost of Goods Sold Operating Expenses, other than depreciation expense Depreciation Expense Gain on Sale of Plant Assets $ 299,000 (135,000) (27,000) (17,000) 16,500 136,500 Net Income Dec. 31, 2018 $45,300 1,600 22,500 900 Accounts Receivable Inventory Accounts Payable Accrued Liabilities Accounts Receivable Inventory Accounts Payable Accrued Liabilities Dec. 31, 2017 $43,400 1,800 21,250 1,150 PLEASE NOTE: Use the account and term names exactly, as shown above and the accounts will be listed in the same order as shown in the textbook examples. All dollar amounts will be rounded to whole dollars using "$" and commas as needed (i.e. $12,345) and decreases will be shown with parentheses - $(12,345).arrow_forwardDirection: Study the given data below and compute for (1) the cash generated/used in financing activities, (2) the net change in cash for the year, and (3) prepare the CFS for the year. Learning is Fun Company has presented the following in order to aid the account in preparing CFS during the month. Net income: P200, 000 Depreciation expense: P25, 000 Gain on sale on property and equipment: P100. 000 Decrease in trade and other receivables: P 70, 000 Purchase of property and equipment: P200, 000 Payment of loan from bank: P150, 000 Compute for the cash generated/used in financing activities. Based on the given above, compute for the net change in cash for the year.arrow_forward
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