1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aivan3 [116]
3 years ago
6

Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Con

sultants.
Purchase of equipment $220,000
Increase in inventory 30,000
Increase in prepaid rent 10,000
Payment of dividends 40,000
Depreciation expense 20,000
Increase in accounts receivable 60,000
Increase in accounts payable 10,000
Loss on sale of land 7,000
Net income 70,000
Repayment of notes payable 50,000
Cash received from the sale of land 3,000
Issuance of common stock 250,000
Prepare the statement of cash flows for CEO Consultants using the indirect method.
Business
1 answer:
kvasek [131]3 years ago
3 0

Answer and Explanation:

The preparation of the cash flow statement is shown below:

Cash Flow From Operating Activities  

Net Income $70,000

Add: Depreciation expenses $20,000

Add: Loss on Sale of Land $7,000

Add: Increase in Accounts Payable $10,000

Less: Increase in accounts receivable -$60,000

Less: Increase in prepaid rent -$10,000

Less: Increase in inventory -$30,000

Cash Flow Provided by Operating Activities $7,000 (A)

Cash Flow From Investing Activities  

Purchase of equipment -$220,000

Cash received from the sale of land $3,000

Cash Flow Used by Investing Activities -$217,000 (B)

Cash Flow from Financing Activities  

Payment of dividends -$40,000

Repayment of notes payable -$50,000

Issuance of common stock $250,000

Cash Flow Provided by Financing Activities $160,000 (C)

Net Decrease in Cash -$50,000 (A + B + C)

Add: Cash at the beginning of the period  $95,000

Cash at the end of the period  $45,000

We considered the all three activities of the cash flow statements

You might be interested in
The board of directors of capstone inc. declared a $0.60 per share cash dividend on its $1 par common stock. on the date of decl
Liula [17]

The entry for the dividend declaration is as following:
Debit Cash Dividend $12,000
Credit Dividend Payable $12,000
To acquire the amount we must multiply the dividend per share which is 0.06 with a number of common shares issued which is 20,000. Capston, Inc have to entry this transaction as the dividend declares although the cash has not yet disbursed to comply with the accrual principle.
 
The treasury stock must be ignored because it is the portion of stocks which held by the company in its own treasury and the amount of authorized stock because it is not yet issued and the company doesn't have the obligation to pay that portion of stocks dividend<span>.</span>
3 0
3 years ago
Werner installs custom sound systems in cars. If he installs seven systems per day, his total costs are $300. If he installs eig
sergiy2304 [10]

Answer:

$100

Explanation:

Total cost if he installs seven systems = $300

Total cost if he installs eight systems = $400

Therefore, the marginal cost of installing 8th system is the difference between the total cost of installing eight systems and the total cost of installing seven systems.

Marginal cost of installing 8th system:

= Total cost of installing 8 systems - Total cost of installing 7 systems

= $400 - $300

= $100

The profit maximization conditions says that the marginal cost must be equal to the marginal revenue.

Hence,

William will install eight systems per day only if the eight customer is willing to pay at least $100.

8 0
3 years ago
According to the U.S. Department of Labor Statistics, _____ is the industry earning the highest average annual wage in 2009.
Alchen [17]

Answer:

B. federal government

4 0
3 years ago
Read 2 more answers
Net loss can be thought of as a __________ to the Capital account.<br><br> Debit<br> Credit
xz_007 [3.2K]

Answer:

The answer is Credit.

Explanation:

Net loss can be thought of as a <u>Credit </u>to the Capital account.

6 0
2 years ago
Which of the ten knowledge areas defined in the Project Management Body of Knowledge includes the processes required to ensure t
strojnjashka [21]

Answer:

Project Scope Management is the applicable knowledge area.

Explanation:

Project Management involves the use of knowledge skills, tools,  techniques to meet the requirement of the project. Other knowledge areas in Project Management include;

  • Project Procurement Management
  • Project Risk Management
  • Project Integration Management
  • Project Communication Management
  • Project Human Resource Management
  • Project Time Management
  • Project Cost Management
  • Project Quality Management
  • Project Stakeholder Management

Project Scope Management involves explaining what the project will entail.  It ensures people have a clear understanding of what the project is about.  

5 0
3 years ago
Other questions:
  • A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variabl
    10·1 answer
  • Bailey, a single taxpayer, obtains permission to change from a calendar year to a fiscal year ending June 30, 2019. During the s
    10·1 answer
  • Why are some countries today much poorer than other countries? Are today's poor countries destined to always be poorer than toda
    10·1 answer
  • Your company wants to set aside a fixed amount every year to a sinking fund to replace a piece of industrial equipment costing $
    14·1 answer
  • Fly-By-Night Couriers is analyzing the possible acquisition of Flash-in-the-Pan Restaurants. Neither firm has debt. The forecast
    10·1 answer
  • A company is evaluating a new 4-year project. The equipment necessary for the project will cost $3,050,000 and can be sold for $
    10·1 answer
  • In developing its future strategy, CVS is focusing on Amazon, which is expanding into the healthcare business. What stage of the
    7·1 answer
  • You would use scenario analysis when:________.
    14·1 answer
  • Question 6 Paige Company estimates that unit sales will be 11,100 in quarter 1, 12,300 in quarter 2, 14,500 in quarter 3, and 18
    11·1 answer
  • The use of insurance credit scoring is more common with the sale of homeowner's insurance coverage than it is with automobile in
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!