ADMS 2500 Lecture Notes - Cash Flow, Accounts Receivable, Accounts Payable

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lilackangaroo206

1 Jul 2014

School

York University

Department

Administrative Studies

Course

ADMS 2500

Professor

all

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ADMS 2500 Full Course Notes

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Victory company"s current year income statement contains the following data: Victory"s comparative balance sheets show the following data (accounts payable relate to merchandise purchases): Compute victory"s current year cash received from customers and cash paid for merchandise purchased. Assume victory"s income statement shows uncollectible accounts expense of. Compute the current year cash received from customers, The lucky company, a sole proprietorship that owns no plant assets, had the following income statement for the current year: Use the preceding information to calculate the net cash flow from operating activities using the direct method. The following information was obtained from the forrest company"s comparative balance sheets: Assume forrest company"s 2005 income statement showed depreciation expense of. ,000, a loss on disposition of equipment of ,000 and a net income of ,000. Calculate the net cash flow from operating activities using the indirect method. Refer to the information in the previous problem.

Related Questions

The following income statement and information about changes innoncash current assets and current liabilities are reported. SONADCOMPANY Income Statement For Year Ended December 31, 2015 Sales $2,417,000 Cost of goods sold 1,184,330 Gross profit 1,232,670Operating expenses Salaries expense $ 331,129 Depreciation expense58,008 Rent expense 65,259 Amortization expensesâPatents 7,251Utilities expense 26,587 488,234 744,436 Gain on sale of equipment9,668 Net income $ 754,104 Changes in current asset and currentliability accounts for the year that relate to operations follow.Accounts receivable $ 20,450 increase Accounts payable $ 14,050decrease Inventory 32,325 increase Salaries payable 5,100 decreaseRequired: Prepare only the cash flows from operating activitiessection of the statement of cash flows using the indirect method.(Amounts to be deducted should be indicated with a minus sign.)

greymoose730

I need help with the assessment below. I cannot figure it out for he life of me. Help with these parts below would be greatly appreciated!




Preparing statement of cash flow


(Preparation and Analysis of Statement of Cash Flows) Here are the financial statements of Falcon Company.

Falcon Company
Comparative Balance Sheets
December 31, 2016
Assets				2016		2015
Cash				$13,000		$16,500
Accounts receivable				14,000		7,000
Merchandise inventory				19,000		12,500
Property, plant, and equipment			$35,000		$39,000
Less: Accumulated depreciation			(13,500)	21,500	(12,000)	27,000
Total				$67,500		$63,000
Liabilities and Stockholdersâ Equity
Accounts payable				$15,500		$21,500
Income taxes payable				13,000		10,000
Bonds payable				10,000		5,000
Common stock				12,500		12,500
Retained earnings				16,500		14,000
Total				$67,500		$63,000

	Falcon Company
	Income Statement
	For the Year Ended December 31, 2016
	Sales				$143,000
	Cost of goods sold				97,000
	Gross profit				46,000
	Selling expenses			$14,000
	Administrative expenses			4,500	18,500
	Income from operations				27,500
	Interest expense				3,500
	Income before income taxes				24,000
	Income tax expense				3,500
	Net income				$20,500

Additional data:
1. Dividends of	$18,000	were declared and paid.
2. During the year equipment was sold for 5,000 cash. This equipment originally cost 7,500, and it had a book value of 5,000 at the time of sale.

3. All depreciation expense, 4,000, is in the sellling expense catagory.
4. All sales and purchases are on account.
5. Additional equipment was purchased for 3,500 cash.
Instructions:
(a) Prepare a statement of cash flows using the indirect method.



	(b)(1) Compute the current cash debt coverage ratio.







	(b)(2) Compute the cash debt coverage ratio.




	(b)(3) Compute the free cash flow.

pearkoala914

EXERCISE 14-6 Prepare a statement of Cash Flows; Free Cash Flow (L014-1, L014-2, L014-3] Comparative financial statement data for Carmono Company follow: This Year Last Year *** Assets Cash... ....................... Accounts receivable ........... Inventory Total current assets Property, plant, and equipment ............. Less accumulated depreciation ........... Net property, plant, and equipment ......... Total assets ........ Liabilities and Stockholders' Equity Accounts payable ......... Common stock Retained earnings ......... Total liabilities and stockholders' equity ....... $ 40 150 $ 36 145 39 $250 $220 For this year, the company reported net income as follows: Sales ......... Cost of goods sold ..................... Gross margin Selling and administrative expenses ........ Net income ........................... $275 150 125 90 $ 35 This year Carmono declared and paid a cash dividend. There were no sales of property, plant, and equipment during this year. The company did not repurchase any of its own stock this year. Required: 1. Using the indirect method, prepare a statement of cash flows for this year. 2. Compute Carmono's free cash flow for this year.

ADMS 2500 Lecture Notes - Cash Flow, Accounts Receivable, Accounts Payable

ADMS 2500 Full Course Notes

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