ACCTG 102 Chapter Notes - Chapter 12: Cash Flow, Treasury Stock, Net Income

151 views3 pages

greenlion442

26 Jul 2018

School

Department

Course

Professor

For unlimited access to Textbook Notes, a Class+ subscription is required.

Document Summary

Statement of cash flows (cid:3450) highlights major activities that impact cash flow. Operating(cid:3450) generate cash inflows/outflows related to revenue and expense transactions that affect net income. Investing(cid:3450) generate cash inflows/outflows related to acquiring or disposing of noncurrent assets such as property, plant, and equipment, long term investments and loans to another entity. Financing(cid:3450) generate cash inflows/outflows related to borrowing from and repaying principal to creditors and completing transactions with the company"s owners, such as selling or repurchasing shares of common stock and paying dividends. Free cash flow (cid:3450) company"s ability to fund its capital expenditures for property, plant, and equipment and its dividends from its net cash provided by operating activities. Free cash flow = net cash provided by operating - capital expenditures - dividends. Contributed capital (cid:3450) common stock, preferred stock, treasury stock. Retained earnings (part financing and part operation) This never changes, cash flow statement is exactly as placed below. Cash flow from operations (income +) (loss -)

Related Questions

EXERCISE 14-3 Calculating Free Cash Flow (L014-3] Apex Company prepared the statement of cash flows for the current year that is shown below: i $ 40,000 (6,000 34,000 Apex Company Statement of Cash Flows-Indirect Method Operating activities: Net income ................................ Adjustments to convert net income to cash basis: Depreciation ...... $ 22,000 Increase in accounts receivable .......... (60,000) Increase in inventory .... (25,000) Decrease in prepaid expenses .......... 9,000 Increase in accounts payable ............... 55,000 Decrease in accrued liabilities .......... (12,000) Increase in income taxes payable ......... 5,000 Net cash provided by operating activities ......... Investing activities: Proceeds from the sale of equipment ............. 14,000 Loan to Thomas Company ........ (40,000) Additions to plant and equipment ................ (110,000 Net cash used for investing activities ......... Financing activities: Increase in bonds payable .. 90,000 Increase in common stock ........... 40,000 Cash dividends (30,000) Net cash provided by financing activities. Net decrease in cash ..... Beginning cash balance........... Ending cash balance ...................... (136,000) 100,000 (2,000) 27,000 $ 25,000 Required: Compute Apex Company's free cash flow for the current year.

Dec. 31,2014		Dec. 31,2013
Assets
Cash		$130	$44
Accounts receivable(net)		75	55
Inventories		47	30
Land		107	125
Equipment		60	48
Accumulateddepreciation-equipment		(16)	(8)
	Total	$403	$294
Liabilities andStockholders' Equity
Accounts payable(merchandise creditors)		$51	$44
Dividends payable		8	-
Common stock, $10par		27	14
Paid-in capital inexcess of par-common stock		55	34
Retained earnings		262	202
	Total	$403	$294

The following additional information is taken from therecords:

Land was sold for $45.

Equipment was acquired for cash.

There were no disposals of equipment during the year.

The common stock was issued for cash.

There was a $87 credit to Retained Earnings for net income.

There was a $27 debit to Retained Earnings for cash dividendsdeclared.

a. Prepare a statement of cash flows, using theindirect method of presenting cash flows from operating activities.Use the minus sign to indicate cash out flows, cash payments,decreases in cash and for any adjustments, if required.

Tru-Built Construction Inc.

Statement of Cash Flows

For the Year Ended December 31, 2014

Cash flows from operating activities:

Adjustments to reconcile net income to net cash flow fromoperating activities:

Changes in current operating assets and liabilities:

Net cash flow from operating activities

Cash flows from investing activities:

Net cash flow provided by investing activities

Cash flows from financing activities:

Net cash flow provided by financing activities

Cash at the beginning of the year

Cash at the end of the year

Was Tru-Built Construction Inc.'s cash flow from operations moreor less than net income? LESS OR MORE

purplepug292

Statement of Cash FlowsâIndirect Method

The comparative balance sheet of Mavenir Technologies Inc. for December 31, 2014 and 2013, is shown as follows:

		Dec. 31, 2014	Dec. 31, 2013
Assets
Cash		$246,880	$232,300
Accounts receivable (net)		89,440	83,430
Inventories		252,460	247,030
Investments		0	95,700
Land		129,500	0
Equipment		278,560	218,400
Accumulated depreciation-equipment		(65,210)	(58,890)
	Total	$931,630	$817,970

Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$168,630	$161,140
Accrued expenses payable (operating expenses)		16,770	21,270
Dividends payable		9,320	7,360
Common stock, $10 par		50,310	40,080
Paid-in capital in excess of par-common stock		189,120	111,240
Retained earnings		497,480	476,880
	Total	$931,630	$817,970

The following additional information was taken from the records:

The investments were sold for $111,970 cash.

Equipment and land were acquired for cash.

There were no disposals of equipment during the year.

The common stock was issued for cash.

There was a $59,040 credit to Retained Earnings for net income.

There was a $38,440 debit to Retained Earnings for cash dividends declared.

Required:

Hide

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required.

Mavenir Technologies Inc.

Statement of Cash Flows

For the Year Ended December 31, 2014

Cash flows from operating activities:

Adjustments to reconcile net income to net cash flow from operating activities:

Changes in current operating assets and liabilities:

Net cash flow from operating activities

Cash flows from investing activities:

Net cash flow used for investing activities

Cash flows from financing activities:

Net cash flow provided by financing activities

Cash at beginning of the year

Cash at end of the year

taupegnat329

ACCTG 102 Chapter Notes - Chapter 12: Cash Flow, Treasury Stock, Net Income

Document Summary

Get access

Related Documents

ACCTG 102 Lecture Notes - Lecture 22: Cash Flow Statement, Treasury Stock, Cash Flow

ACCTG 102 Lecture Notes - Lecture 13: Net Income, Preferred Stock, Accrual

ACCTG 102 Lecture Notes - Lecture 23: Cash Flow Statement, Accrual, Net Income

Related Questions