1. Fill in the table by indicating if it is an increasing (+) or decreasing (-) transaction. Also indicate if it is an operating (O), investing (I), or financing (F), activity. + or - O, I, or F
Cash payment of dividends
2,000
Cash payment for inventory
120,650
Cash payment for expenses
61,000
Cash payment for wages
45,250
Cash payment for interest expense
925
Cash payment for purchase of equipment
25,350
Cash payment for repayment of debt
14,000
Cash collection of accounts receivable
340,500
Cash collection of interest revenue
12,500
Cash collection of dividend revenue
10,500
Cash proceeds from sale of equipment
12,000
Cash proceeds from sale of common stock
55,000
2. Using the information in the table from question 1, complete the following statement of cash flows using the direct method. List each transaction and amount under the appropriate section. Be sure to indicate if it is increasing or decreasing (+ or -). You may not need to use all of the lines.
Cash from Operating Activity
Amount
Net cash __ (provided or used) by operating activity
Cash from Investing activity
Amount
Net cash _____ (provided or used) by investing activity
Cash from Financing Activity
Amount
Net cash __ (provided or used) by financing activity
Net change in cash during period
Cash at beginning of period 27,000
Cash at end of period
1. Fill in the table by indicating if it is an increasing (+) or decreasing (-) transaction. Also indicate if it is an operating (O), investing (I), or financing (F), activity. + or - O, I, or F
| Cash payment of dividends | 2,000 | ||
| Cash payment for inventory | 120,650 | ||
| Cash payment for expenses | 61,000 | ||
| Cash payment for wages | 45,250 | ||
| Cash payment for interest expense | 925 | ||
| Cash payment for purchase of equipment | 25,350 | ||
| Cash payment for repayment of debt | 14,000 | ||
| Cash collection of accounts receivable | 340,500 | ||
| Cash collection of interest revenue | 12,500 | ||
| Cash collection of dividend revenue | 10,500 | ||
| Cash proceeds from sale of equipment | 12,000 | ||
| Cash proceeds from sale of common stock | 55,000 |
2. Using the information in the table from question 1, complete the following statement of cash flows using the direct method. List each transaction and amount under the appropriate section. Be sure to indicate if it is increasing or decreasing (+ or -). You may not need to use all of the lines.
| Cash from Operating Activity | Amount |
| Net cash __ (provided or used) by operating activity | |
| Cash from Investing activity | Amount |
| Net cash _____ (provided or used) by investing activity | |
| Cash from Financing Activity | Amount |
| Net cash __ (provided or used) by financing activity |
Net change in cash during period
Cash at beginning of period 27,000
Cash at end of period
Related questions
For each of the following transactions:
indicate whether it will result in an increase (+), decrease (รขยย), or have no effect (NE) on cash flows;
classify each of the transactions as an operating (O), investing (I), financing (F), or significant noncash investing / financing (NC) activity or no effect (NE)
| Impact (+), (รขยย) or (NE) | Classification (O), (I), (F), (NC) or (NE) | |
| Repayment of mortgage payable | ||
| Payment of interest on mortgage | ||
| Purchase of land in exchange for common shares | ||
| Issue of preferred shares for cash | ||
| Collection of accounts receivable | ||
| Declaration of cash dividend | ||
| Payment of cash dividend | ||
| Cash purchase of inventory |
Selected information (CAD millions) are presented for two firms ROP and DUL, operating in the same industries:
| DUL | ROH | |
| Net income | $ 4,529 | $ 161 |
| Net cash provided by operating activities | 6,539 | 212 |
| Net cash provided (used) by investing activities | (1,420) | 35 |
| Net cash provided (used) by financing activities | 735 | (176) |
| Net increase in cash and cash equivalents | $ 5,854 | $ 71 |
| Cash and cash equivalents, beginning of year | $ 2,078 | $ 267 |
| Cash and cash equivalents, end of year | $ 7,932 | $ 338 |
Required:
i) Compare and discuss the performance / activity the two companies based on the above Cash Flow and Net Income information.
ii) Which company appears to be in a stronger Cash position? Why?
urgent need it an hour wil rate
The comparative balance sheets of Posner Company, for Years 1 and 2 ended December 31, appear below in condensed form.
| 1 | Year 2 | Year 1 | |
| 2 | Cash | $53,000.00 | $50,000.00 |
| 3 | Accounts Receivable (net) | 37,000.00 | 48,000.00 |
| 4 | Inventories | 108,500.00 | 100,000.00 |
| 5 | Investments | 70,000.00 | |
| 6 | Equipment | 573,200.00 | 450,000.00 |
| 7 | Accumulated Depreciation-Equipment | (142,000.00) | (176,000.00) |
| 8 | $629,700.00 | $542,000.00 | |
| 9 | Accounts Payable | $62,500.00 | $43,800.00 |
| 10 | Bonds Payable, Due Year 2 | 100,000.00 | |
| 11 | Common Stock, $10 par | 325,000.00 | 285,000.00 |
| 12 | Paid-In Capital in Excess of ParรขยยCommon Stock | 80,000.00 | 55,000.00 |
| 13 | Retained Earnings | 162,200.00 | 58,200.00 |
| 14 | $629,700.00 | $542,000.00 |
The income statement for the current year is as follows:
| 1 | Sales | $625,700.00 | |
| 2 | Cost of merchandise sold | 340,000.00 | |
| 3 | Gross profit | $285,700.00 | |
| 4 | Operating expenses: | ||
| 5 | Depreciation expense | $26,000.00 | |
| 6 | Other operating expenses | 68,000.00 | 94,000.00 |
| 7 | Income from operations | $191,700.00 | |
| 8 | Other revenue and expense: | ||
| 9 | Gain on sale of investment | $4,000.00 | |
| 10 | Interest expense | (6,000.00) | (2,000.00) |
| 11 | Income before income tax | $189,700.00 | |
| 12 | Income tax | 60,700.00 | |
| 13 | Net income | $129,000.00 |
Additional data for the current year are as follows:
| (a) | Fully depreciated equipment costing $60,000 was scrapped, no salvage, and new equipment was purchased for $183,200. |
| (b) | Bonds payable for $100,000 were retired by payment at their face amount. |
| (c) | 5,000 shares of common stock were issued at $13 for cash. |
| (d) | Cash dividends declared and paid, $25,000. |
Required:
| Prepare a statement of cash flows using the indirect method of reporting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. |
Labels and Amount Descriptions
| Labels | |
| For the Year Ended December 31, Year 2 | |
| Amount Descriptions | |
| Cash from sale of common stock | |
| Cash from sale of investments | |
| Cash paid for dividends | |
| Cash paid for purchase of equipment | |
| Cash paid to retire bonds payable | |
| Decrease in accounts payable | |
| Decrease in accounts receivable | |
| Decrease in cash | |
| Decrease in inventories | |
| Depreciation | |
| Gain on sale of investment | |
| Increase in accounts payable | |
| Increase in accounts receivable | |
| Increase in cash | |
| Increase in inventories | |
| Loss on sale of investment | |
| Net cash flow from financing activities | |
| Net cash flow from investing activities | |
| Net cash flow from operating activities | |
| Net cash flow used for financing activities | |
| Net cash flow used for investing activities | |
| Net cash flow used for operating activities | |
| Net income | |
| Net loss |
Statement of Cash Flows
Prepare a statement of cash flows using the indirect method of reporting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
| Posner Company |
| Statement of Cash Flows |
| 1 | Cash flows from operating activities: | ||
| 2 | |||
| 3 | Adjustments to reconcile net income to net cash flow from operating activities: | ||
| 4 | |||
| 5 | |||
| 6 | Changes in current operating assets and liabilities: | ||
| 7 | |||
| 8 | |||
| 9 | |||
| 10 | |||
| 11 | Cash flows from investing activities: | ||
| 12 | |||
| 13 | |||
| 14 | |||
| 15 | Cash flows from financing activities: | ||
| 16 | |||
| 17 | |||
| 18 | |||
| 19 | |||
| 20 | |||
| 21 | Cash at the beginning of the year | ||
| 22 | Cash at the end of the year |
I have already answered questions 1 and 2, I don't need help with those. I posted those for the information in case you need it for the other questions.
[The following information applies to the questions displayed below.]
| Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $10. At the start of January 2015, VGCรขยยs income statement accounts had zero balances and its balance sheet account balances were as follows: |
| Cash | $ | 2,360,000 | |
| Accounts Receivable | 152,000 | ||
| Supplies | 19,100 | ||
| Equipment | 948,000 | ||
| Land | 1,920,000 | ||
| Building | 506,000 | ||
| Accounts Payable | 109,000 | ||
| Unearned Revenue | 152,000 | ||
| Notes Payable (due 2018) | 80,000 | ||
| Common Stock | 2,200,000 | ||
| Retained Earnings | 3,364,100 | ||
| In addition to the above accounts, VGCรขยยs chart of accounts includes the following: Service Revenue, Salaries and Wages Expense, Advertising Expense, and Utilities Expense.
6. Prepare a Statement of Retained Earnings for the month ended January 31, 2015, using the beginning balance given above and the net income from part 5. Assume VGC has no dividends.
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