Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Revise the Statement of Cash Flows, preparing it in good form. Identify and segregate the Operating, Investing and Financing Activities. For simplicity, use parentheses to
Revise the Statement of Cash Flows, preparing it in good form. Identify and segregate the Operating, Investing and Financing Activities. For simplicity, use parentheses to identify the cash outflow line items and totals. Calculate and label the net cash generated or used by section and overall. The beginning cash and equivalents balance(s) is(are) $100.000. HINT: What is the proper handling of non-cash barters or swaps?
ACCT 632 CASE FOR WEEK 6 CH 7 CASH FLOWS AND FAIR VALUE based on the Balance Sheet Study Case 7-11 Statement of Cash Flows The following Statement of Cash Flows was prepared for the Baines Corporation. Baines Corporation Statement of Sources and Uses of Cash Year Ended December 31, 2014 Sources of cash Net income $111,000 Depreciation and depletion 70,000 Increase in long-term debt 179,000 Changes in current receivables and inventories, less current liabilities 14,000 $374,000 Uses of cash Cash dividends $ 60,000 Expenditure for property, plant, and equipment 214,000 Investments and other uses 20,000 Change in cash 80,000 The following additional information relating to Baines Corporation is available for the year ended December 31, 2014. 1. Wage and salary expense attributable to stock option plans was $25,000 for the year. 2. Expenditures for property, plant, and equipment $250,000 Proceeds from retirements of property, plant, and equipment 36,000 Net expenditures $214,000 3. A stock dividend of 10,000 shares of Baines Corporation common stock was distributed to common stockholders on April 1, 2014, when the per share market price was $7 and par value was $1. 4. On July 1, 2014, when its market price was $6 per share, 16,000 shares of Baines Corporation common stock were issued in exchange for 4,000 shares of preferred stock. ISSUED BY JEF GARNER, ACCOUNTING INSTRUCTOR 2015-January 10 pg. 1 ACCT 632 CASE FOR WEEK 6 CH 7 CASH FLOWS AND FAIR VALUE based on the Balance Sheet Study 5. Depreciation expense Depletion expense $ 65,000 5,000 $ 70,000 6. Increase in long-term debt Retirement of debt Net increase $620,000 441,000 $179,000 Required: Prepare a Cash Flow statement in good form for part (a). You may use Word or Excel, and consider pasting the Excel as a page in your Word document. a. Revise the Statement of Cash Flows, preparing it in good form. Identify and segregate the Operating, Investing and Financing Activities. For simplicity, use parentheses to identify the cash outflow line items and totals. Calculate and label the net cash generated or used by section and overall. The beginning cash and equivalents balance(s) is(are) $100.000. HINT: What is the proper handling of non-cash barters or swaps? ISSUED BY JEF GARNER, ACCOUNTING INSTRUCTOR 2015-January 10 pg. 2Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started