Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Chapter 3, Problem 1HIC
To determine
Explain the difference in amount of
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Here is the complete worksheet I am working on for my homework. The blank spots I had to fill in are:
Income statement: sales and costs of goods sold for 2018
Balance sheet was cash and net fixed assets for 2018
Cash flow statements were: depreciation, accounts receivable and accts payable
Can you let me know if the information I have provided looks correct? I just want to make sure I am on the right track. Thank you!
Income Statement
For the year:
2016
2017
2018
Sales
$ 120,000
$ 150,000
$ 180,000
Cost of Goods Sold
$ 100,000
$ 120,000
Gross Profit
$ 60,000
General, Selling, & Administrative Expense
$ 50,000
Depreciation
$ 8,500
Net Income
$ 1,500
Balance Sheet
For the year ending:
2017
2018
Assets
Cash
$…
According to the images, answer the following questions:
1. During the year ended March 11th, 2017, how much did Sainsbury’s receive in cash due to sales of plant, property and equipment?
a) 55
b) 314
c) 634
d) 466
e) None of the Above
2. During the year ended March 11th, 2017, how much net cash flow did Sainsbury’s generate from operating activities (including interest and taxes paid)?
a) (63)
b) 1,077
c) 1,323
d) 1,153
e) None of the above
3. In which part of the Statement of Cash Flows does Sainsbury’s classify interest received and dividend received?
a) Cash Flows from Operations
b) Cash Flows from Investing
c) Cash Flows from Financing
d) Not classified
4. What amount of long–term borrowings did Sainsbury’s repay during the year? You can ignore capital leases
a) 492
b) 130
c) 466
d) 448
e) None of the above
5. What is the difference between the Net profit for the financial year and “Net cash generated from operating activities (CFO)”?
a) Net profit is 776 greater than CFO
b) Net…
This is an accounting question about reconciling direct-method cash flow from operations to net income.
I have read that generally for a simple noninventory situation the approach would be something like:
Net Income Plus depreciation Minus Change in Current Assets Plus Change in Current Liabilities --> Should equal cash flows from operations in the cash flow statement.
My question is about purchasing a long-term asset on account. A journal entry is made: credit accounts payable/debit long-term asset. If I generate a cash flow statement, the increase in current liabilities caused by that entry will be a part of the equation above. But that amount is not an operating cash flow, it is an investing cash flow. So my reconciliation to operating activities will be off by that amount.
It seems like there's a missing adjustment in the equation, like "Minus assets purchased on account" or something like that.
Example: Say my company just started and so far only has $5K contibuted cash in the…
Chapter 3 Solutions
Financial Reporting, Financial Statement Analysis and Valuation
Ch. 3 - Need for a Statement of Cash Flows. The accrual...Ch. 3 - Articulation of the Statement of Cash Flows with...Ch. 3 - Classification of Interest Expense. Under U.S....Ch. 3 - Prob. 4QECh. 3 - Classification of Changes in Short-Term Financing....Ch. 3 - Classification of Cash Flows Related to...Ch. 3 - Treatment of Non-Cash Exchanges. The acquisition...Ch. 3 - Computing Cash Collections from Customers....Ch. 3 - Computing Cash Payments to Suppliers. Lowes...Ch. 3 - Computing Cash Payments for Income Taxes. Visa...
Ch. 3 - Interpreting the Relation between Net Income and...Ch. 3 - Interpreting the Relation between Net Income and...Ch. 3 - Interpreting Relations among Cash Flows from...Ch. 3 - Interpreting Relations among Cash Flows from...Ch. 3 - Interpreting the Statement of Cash Flows. The...Ch. 3 - Interpreting the Statement of Cash Flows. Texas...Ch. 3 - Interpreting the Statement of Cash Flows. Tesla...Ch. 3 - Interpreting the Statement of Cash Flows. Gap Inc....Ch. 3 - Prob. 19PCCh. 3 - Prob. 20PCCh. 3 - Interpreting the Statement of Cash Flows....Ch. 3 - Extracting Performance Trends from the Statement...Ch. 3 - Interpreting a Direct Method Statement of Cash...Ch. 3 - Prob. 24PCCh. 3 - Preparing a Statement of Cash Flows from Balance...Ch. 3 - Prob. 26PCCh. 3 - Preparing a Statement of Cash Flows from Balance...Ch. 3 - Prob. 1AICCh. 3 - Prob. 1BICCh. 3 - Prob. 1CICCh. 3 - Prob. 1DICCh. 3 - Prob. 1EICCh. 3 - Prob. 1FICCh. 3 - Prob. 1GICCh. 3 - Prob. 1HICCh. 3 - Prob. 2AICCh. 3 - Prob. 2BICCh. 3 - Prob. 2CICCh. 3 - Prob. 2DICCh. 3 - Prob. 2EICCh. 3 - Prob. 2FICCh. 3 - Prob. 3IC
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