Refer to all of the facts in Problem 12-3A. Required 1. Prepare a statement of cash flows
Question:
Required
1. Prepare a statement of cash flows for 2012 using the indirect method in the Operating Activities section.
2. On the basis of your statement in part (1), draft a brief memo to the president to explain why cash decreased during such a profitable year. Include in your explanation any recommendations for improving the company's cash flow in future years.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 88% (9 reviews)
1 Changes in account balances and explanations in thousands of dollars Net Change Explanation Cash 70 Accounts receivable 85 Inventory 20 Prepayments ...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1111534912
8th edition
Authors: Gary A. Porter, Curtis L. Norton
Question Posted:
Related Video
In order to determine the amount of cash created by operating operations, the indirect technique for preparing the statement of cash flows entails adjusting net income with changes in balance sheet.
Students also viewed these Accounting questions
-
Statement of Cash FlowsIndirect Method Refer to all of the facts in Problem 12-3A. Presented here are comparative balance sheets: Required 1. Prepare a statement of cash flows for 2010 using the...
-
Statement of Cash Flows Using a Work SheetIndirect Method Refer to all of the facts in Problem 12-3A. Presented here are comparative balance sheets: Required 1. Using the format in the chapters...
-
Refer to all of the facts in Problem 12-9. Required 1. Prepare a balance sheet at December 31, 2012. 2. Using the format in the chapter's appendix, prepare a statement of cash flows work sheet. 3....
-
The annual revenues associated with several large apartment complexes are $300, $450, $425, $50, $75, and $150 for years 0, 1, 2, 3, 4, and 5, respectively. Determine the net cash flow and whether...
-
Suppose that Sage had ordered the scooter through the dealers Web site but the dealer had been unable to deliver it by the date promised. What would the FTC have required the merchant to do in that...
-
1. A man is stranded in the middle of an ice rink that is perfectly frictionless. How can he get to the edge? 2. A girl jumps from a boat to a dock. Why does she have to jump more energy than she...
-
Carmex se dedica a proporcionar a los consumidores frmulas superiores de blsamo para labios, que curan, suavizan y protegen, asegurndose al mismo tiempo de que los labios permanezcan saludables e...
-
Nintendo Company reports the following income statement accounts for the year ended March 31, 2011. (Japanese yen in millions.) Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
-
Suppose you want to have $800,000 for retirement in 35 years. Your account earns 8% interest. a) How much would you need to deposit in the account each month? $ b) How much interest will you earn? $
-
Lemma 45.26 states that if D is a UFD with a field of quotients F, then a nonconstant irreducible f(x) of D[x] is also an irreducible of F[x ]. Show by an example that a g(x) D[x] that is an...
-
Wabash Corp. just completed another successful year, as indicated by the following income statement: For the Year Ended December 31, 2012 Sales...
-
Refer to all of the facts in Problem 12-3A. Required 1. Using the format in the chapter's appendix, prepare a statement of cash flows work sheet. 2. Prepare a statement of cash flows for 2012 using...
-
Solve each equation or inequality. 2x + x = 10
-
Working in the production area of a manufacturing company is right where William feels at home. Several of his family members had worked in similar environments throughout their careers, and he loves...
-
Use the Nernst equation and reduction potential data from (Petrucci's Appendix D; OpenStax's Table 16.1) to calculate Ecell for the following cell: Al (s) | Al3+ (0.18 M) || Fe+ (0.85 M) | Fe (s)
-
1.) Describe economic interventions that the federal government used to deal with the COVID shutdown and subsequent inflation. Would you have done anything differently? 2.) Describe three of the...
-
The goal is to understand the principles of project valuation and capital budgeting in a practical setting, using a combination of fictitious data and real-world examples. Begin by proposing a...
-
45. The use of realistic predetermined unit costs to facilitate product costing, cost control, cost flow, and inventory valuation is a description of the A. flexible budget concept. B. budgetary...
-
Researchers might use ________ when providing participants with the full details of the experiment could skew their responses. a. Informed consent b. Deception c. Ethics d. Debriefing
-
Shreemaya Hotel in !adore was facing a problem of low demand for its rooms due to off season. The Managing Director (MD) of the hotel, Mrs. Sakina was very worried. She called upon the Marketing...
-
Billings Company has a patent on its books with a balance at the beginning of the year of $24,000. The ending balance for the asset was $20,000. The company did not buy or sell any patents during the...
-
Ace Inc. declared and distributed a 10% stock dividend during the year. Explain how, if at all, you think this transaction should be reported on a statement of cash flows.
-
Explain where to find the information needed to determine a companys cash flow adequacy.
-
An 8%, 30-year semi-annual corporate bond was recently being priced to yield 10%. The Macaulay duration for this bond is 10.2 years. What is the bonds modified duration? How much will the price of...
-
Question 7 of 7 0/14 W PIERDERY Current Attempt in Progress Your answer is incorrect Buffalo Corporation adopted the dollar value LIFO retail inventory method on January 1, 2019. At that time the...
-
Cost of debt with fees . Kenny Enterprises will issue a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 9.9% with semiannual payments, and will use an investment...
Study smarter with the SolutionInn App