List the errors you find in the following statement of cash flows. The cash balance at the
Question:
List the errors you find in the following statement of cash flows. The cash balance at the beginning of the year was $100,320. All other amounts are correct, except the cash balance at the end of theyear.
Transcribed Image Text:
Devon Inc. Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities: Net income $148,080 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on sale of investements Changes in current operating assets and liabilities: 42,000 7,200 Increase in accounts receivable 11,400 (14,760) (4,440) (1,080) Increase in inventories Increase in accounts payable Decrease in accrued expenses payable Net cash flow from operating activities Cash flows from investing activities: $188,400 $ 102,000 Cash received from sale of investments $ 108,000 180,200 Less: Cash paid for purchase of land Cash paid for purchase of equipment 288,200 Net cash flow used for investing activities Cash flows from financing activities: (186,200) $1 28,400 Cash received from sale of common stock Cash paid for dividends 54,000 Net cash flow provided by financing activities Increase in cash Cash at the end of the year 182,400 $184,600 126,300 $310,900 Cash at the beginning of the year
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
a Gain on sale of investments should be deducted from net income b Increase in accounts rec...View the full answer
Answered By
Branice Buyengo Ajevi
I have been teaching for the last 5 years which has strengthened my interaction with students of different level.
4.30+
1+ Reviews
10+ Question Solved
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Question Posted:
Students also viewed these Accounting questions
-
List the errors you find in the following balance sheet. Prepare a corrected balance sheet. Poshe Services Co. Balance Sheet For the Year Ended May 31, 2012 Assets Liabilities Current assets: Current...
-
List the errors you find in the following balance sheet. Prepare a corrected balancesheet. Cabana Services Co. Balance Sheet For the Year Ended August 31, 2010 Liabilities Assets Current liabilities:...
-
List the errors you find in the following balance sheet. Prepare a corrected balancesheet. VINEYARD SERVICES CO. Balance Sheet For the Year Ended October 31, 2010 Assets Current assets: $ 12,000 Cash...
-
The ABC Company has a cost of equity of 24.76 percent, a before-tax cost of debt of 5.37 percent, and a tax rate of 26 percent. What is the firm's weighted average cost of capital if the proportion...
-
Use Procedure 5.1 on page 242 to solve part (g) of Exercise 5.65. In Procedure 5.1 Step 1 Identify a success. Step 2 Determine p, the success probability. Step 3 Determine n, the number of trials....
-
What are the risks and rewards of writing and buying options? Are there any circumstances under which you would get involved? Why or why not? (Hint: Think of a case in which you own shares of the...
-
Explain how net earnings can be manipulated when the specific identification inventory costing method is used.
-
Predicting Software Reselling Profits. Taiko Software is a software catalog firm that sells games and educational software. It started out as a software manufacturer and then added third-party titles...
-
Question 5 of 9 0 1 . 1 1 Your answer is incorrect. Pearl Mining Company purchased land on February 1 , 2 0 2 5 , at a cost of $ 1 , 1 6 9 , 5 0 0 . It estimated that a total of 5 2 , 8 0 0 tons of...
-
On September 16, 20X8, Toys R Us, the worlds largest toy seller, Announced strategic initiatives tore structure its business. The total cost of implement these initiatives yielded a charge of $508...
-
Sanhueza, Inc., reported a net cash flow from operating activities of $162,500 on its statement of cash flows for the year ended December 31, 2010. The following information was reported in the Cash...
-
The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following: (a) If sales for the current year were $685,000 and accounts...
-
Refer to the Real World Case on Data-Driven Crime Fighting in the chapter. Given the very decentralized nature of law enforcement, with more than 18,000 units in the United States alone, what can be...
-
You are the audit senior in charge of the audit of a medium-sized manufacturing company. You have asked the company secretary for the minutes of all board meetings held since the conclusion of last...
-
If a company increases its fixed costs for Product \(B\), then the contribution margin per unit will a. Increase b. Decrease c. Remain the same
-
The City of Coyote mailed property tax bills for 2011 to its citizens during August 2010. Payments could be made early to receive a discount. The levy becomes legally enforceable on February 15,...
-
If a company increases its selling price per unit for Product \(A\), then the new breakeven point will a. Increase b. Decrease c. Remain the same
-
If Telluride Railway's fixed costs total \(\$ 50,000\) per month, the variable cost per passenger is \(\$ 36\), and tickets sell for \(\$ 60\), how much revenue must the Railway have to earn \(\$...
-
What are repos?
-
What is the difference between direct materials and indirect materials?
-
The Second Derivative Test for critical points fails if "(c) = 0. This exercise develops a Higher Derivative Test based on the sign of the first nonzero derivative. Suppose that (a) Show, by applying...
-
Bad-Debt Accounting Simms Company has significant amounts of trade accounts receivable. Simms uses the allowance method to estimate bad debts instead of the direct write-off method. During the year,...
-
Various Receivable Accounting Issues Kimmel Company uses the net method of accounting for sales discounts. Kimmel also offers trade discounts to various groups of buyers. On August 1, 2010, Kimmel...
-
Bad-Debt Reporting Issues Clark Pierce conducts a wholesale merchandising business that sells approximately 5,000 items per month with a total monthly average sales value of $250,000. Its annual bad...
-
Exercise 3 - 1 5 A ( Algo ) Multiple product break - even analysis LO 3 - 6 Franklin Company manufactures two products. The budgeted per - unit contribution margin for each product follows: Franklin...
-
Jacob was hired as the Chief Marketing Officer (CMO) of Theta Corporation, a publicly-traded company in the retail sector, effective July 1, 2022. Throughout the fiscal year 2023, Theta Corporation...
-
Your company has purchased a large new truck - tractor for over - the - road use ( asset class 0 0 . 2 6 ) . It has a cost basis of $ 1 8 0 , 0 0 0 . With additional options costing $ 1 5 , 0 0 0 ....
Study smarter with the SolutionInn App