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Please help me figure out this HW problem. I don't understand the set up on the left for how they want the SCF. The Statement
Please help me figure out this HW problem. I don't understand the set up on the left for how they want the SCF.
The Statement of Cash Flows Has Three Sections--the total of the cash flows from the sections should equal change in cash balance during the year. Assets 1922 1921 $15,000 Section 1: Cash flows from Operations This section summarizes the company's cash flows from operations. The format of the section is as follows: $300,000 Current Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current $33,000 $210,000 $196,000 $15,000 $454.000 Net Income Adjustments for changes in Current Asset and Liab. Subtract Increases in Current Assets $250,000 $7,000 $572.000 Long-Term Investments $90,000 $120,000 +Add decreases in Current Assets + Add increases in Current Liabilities Subtract decreases in Currrent Liabilities Plant and Less: 800, Dep. Net Plant and Equipment $860,000 ($210,000) $650,000 $750,000 ($190,000 $560,000 Total Assets $1,312,000 $1,134,000 Depreciaion/Amortization Expense -Gains on Asset Sales * Losses on Asset Sales Cash Flows from Operations $275,000 $8,000 $230,000 $15,000 $245.000 $283,000 Liab and SE Accounts Payable Accrued Liabilities Total Current Liabilities Bonds Payable Deferred Income Taxes Total Liabilities $200,000 $100,000 $42,000 $525,000 $39,000 $384,000 Section 2: Cash Flows from Investing Activities This section includes Cash Flows from the 1) Sale/purchase of Long Term Assets and 2) Flows from Loans Made to other entities. The inflows and outflows are as follows: Cash InFlows: 1) Proceeds from the Sale of Long Term Assets 2) Cash Received from others for Loans Made to Them Cash Outflows: 1) Cash Paid to Purchase Long Term Assets 2) Cash Loaned to others Cash Flows from Investing Activities $595,000 $ 192,000 Shareholders Common Stook Retained Earnings Total Shareholders Equity Total Liabilities and SE $600,000 $150,000 $750,000 $787,000 $1,134,000 $1,312,000 Allied Products Income YE 12/31/1932 Section 3: Cash Flows from Financing Activities This Section provides cash from from 1) Issuing/buying back stock (or paying dividends) and 2) Borrowing/Repaying Debt. The Inflows and Outrows are as follows: Cash InFlows: 1) Proceeds from the Sale of Long Stock 2) Cash Received from Borrowing from others $800,000 ($500,000 $300,000 ($214,000 $86,000 Cash Outflows: Sales -Cost of Goods Gross Margin Less Operating Expenses Net Operating Non-Operating Gain on Sale of Investment Loss on Sale of Investment Income Before -Income Taxes Net Income $20,000 1) Cash Paid to Repurchase stock..pay dividends 2) Cash borrowed from Others ($6,000 $100,000 ($30,000 $70,000 Cash Flows from Operations Net Change in Cash Balance (sum of Three section)Step by Step Solution
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