Refer to all of the facts in Problem 12-11A. Required 1. Prepare a statement of cash flows
Question:
Refer to all of the facts in Problem 12-11A.
Required
1. Prepare a statement of cash flows for 2010 using the indirect method in the Operating Activities section.
2. Evaluate the following statement: Whether a company uses the direct or indirect method to report cash flows from operations is irrelevant because the amount of cash flow from operating activities is the same regardless of which method is used.
Transcribed Image Text:
For the Year Ended June 30, 2010 $400,000 Sales revenue Cost of goods sold Gross profit General and administrative expenses Depreciation expense Loss on sale of plant assets 240,000 $160,000 $ 40,000 80,000 10,000 $130,000 $ 30,000 15,000 $ 15,000 5,000 $ 10,000 Total expenses and losses Income before interest and taxes Interest expense Income before taxes Income tax expense Net income
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (12 reviews)
1 Changes in account balances and explanations in thousands of dollars Net Change Dr Cr Explanation Cash 15 Accounts receivable 11 Inventory 25 Prepaid rent 16 Land 90 Sale Plant and equipment 75 Purc...View the full answer
Answered By
Muhammad Umair
I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
3.50+
1+ Reviews
10+ Question Solved
Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
Question Posted:
Students also viewed these Managerial Accounting questions
-
Refer to all of the facts in Problem 11-1. Required Indicate how each transaction affects the cash flow of Peeler Company by preparing the Financing Activities section of the 2012 statement of cash...
-
Refer to all of the facts in Problem 12-9A. Required 1. Prepare a balance sheet at December 31, 2010. 2. Using the format in the chapters appendix, prepare a statement of cash flows work sheet. 3....
-
Refer to all of the facts in Problem 11-1A. I n Problem 11-1A Preferred stock, $80 par value, 8%, 1,000 shares issued and outstanding.............................. $ 80,000 Common stock, $10 par...
-
4. Finally, briefly discuss how you could use an empirical econometric model to assess the health and economic growth consequences of a 'fat tax'.
-
Determine the effects of the following on a cash basis taxpayer's gross income for 2016 and 2017. a. On the morning of December 31, 2016, the taxpayer received a $1,500 check from a customer. The...
-
The outstanding share capital of Meadowcrest Corporation consists of 3,000 shares of preferred and 7,000 common shares for which $280,000 was received. The preferred shares carry a dividend of $7 per...
-
A graph with three vertices has at most three edges. a. True b. False
-
Use the following cash flow data for Rocket Transport to find Rockets a. Net cash provided by or used in investing activities. b. Net cash provided by or used in financing activities. c. Net increase...
-
Peter, Roberts, and Dana have the following capital balances; $ 8 0 , 0 0 0 , $ 1 0 0 , 0 0 0 and $ 6 0 , 0 0 0 , respectively.The partners share profits and losses 2 0 % , 4 0 % , and 4 0 %...
-
Consider a sequence of independent tosses of a biased coin at times t = 0, 1, 2, . . .. On each toss, the probability of a head is p, and the probability of a tail is 1 p. A reward of one unit is...
-
Bannack Corp. is in the process of preparing its statement of cash flows for the year ended June 30, 2010. An income statement for the year and comparative balance sheets are as follows: Dividends of...
-
Shepard Company has not yet prepared a formal statement of cash flows for 2010. Comparative balance sheets as of December 31, 2010 and 2009, and a statement of income and retained earnings for the...
-
The apparatus shown in the diagram below was used to investigate the gases produced when a concentrated solution of potassium chloride was electrolysed. a. Name a non-metal suitable for use as...
-
Why are queries important in a database? What is a subquery? Provide an example. What are the joins? What are the types of joins
-
discuss how understanding the influences on an operational environment (OE) affect the Army's ability to conductLarge Scale Combat Operations(LSCO)?
-
What is Agency Relation? Describe Moral Hazard Problem. Discuss how to solve the Agency Problem.
-
Discuss how to formulate hypotheses and how to conduct tests such as the one used by Morrell. Be sure to support your comments with references
-
Critique how relevant theories (e.g. Tuckman's 5 stages of group development, Belbin's 9 team roles) on teams and group may work in practice. How does working in groups and teams facilitate...
-
Use the results from Exercises \(9-11\) to write a summary about the correlation (or lack of correlation) between test scores and GNI. Use the table below. The table shows the average achievement...
-
Use translations to graph f. f(x) = x-/2 +1
-
Draw three Lewis structures that follow the octet rule (including the most important structure) for the isocyanate ion, CNO . State which of the three Lewis structures is the most important and...
-
Bombeck Company sells a product for $1,500. When the customer buys it, Bombeck provides a one-year warranty. Bombeck sold 120 products during 2012. Based on analysis of past warranty records, Bombeck...
-
On June 30, 2012, Rolf Inc. borrowed $25,000 from its bank, signing an 8%, two-year note. Required 1. Assuming that the bank charges simple interest on the note, prepare the journal entry Rolf will...
-
Shari Thompson invested $1,000 in a financial institution on January 1, 2012. She leaves her investment in the institution until December 31, 2016. How much money does Shari accumulate if she earns...
-
A company has fixed costs of $250,000, variable costs per unit of $5, and a selling price per unit of $18. Calculate the breakeven point in units and dollars, and evaluate the company's cost...
-
The balance sheet of XYZ Ltd. on December 31, 2023, is provided below: Item Amount ($) Accounts Payable 1,230,000 Notes Payable 1,210,000 Accrued Expenses 1,090,000 Total Current Liabilities ?...
-
Calculate Debt to Equity Ratio: Requirements: Given the balance sheet information: Total Debt: $300,000 Total Equity: $450,000 Compute the debt to equity ratio. Express the debt to equity ratio as a...
Study smarter with the SolutionInn App