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trasher [3.6K]
3 years ago
6

Preparation of a statement of cash flows involves five steps:

Business
1 answer:
adelina 88 [10]3 years ago
4 0

Answer:

Preparation of a statement of cash flows involves five steps

1. Compute net cash provided or used by operating activities.

This is the section where all the cash flow that belongs to the operating section are been added and subtracted according to the inflow and outflow of the transaction.

2. Compute net cash provided or used by investing activities.

This is the section where all the cash flow that belongs to the investing section are been added and subtracted according to the inflow and outflow of the transaction.

3. Compute net cash provided or used by financing activities.

This is the section where all the cash flow that belongs to the financing section are been added and subtracted according to the inflow and outflow of the transaction.

4. Compute the net increase or decrease in cash

This is the section where the cash-flow from operating, investing and financing activities is  been balanced.

5. Report the beginning and ending cash balances and prove that the ending cash balance is explained by net cash flows.

After the cash-flow from operating, investing and financing activities is  been calculated, Then, this section is also computed to derive the Closing/Ending cash balance

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The Stores and Service Fund of the City of Monroe had the following account balances as of January 1, 2017:
aleksklad [387]

Answer and Explanation:

The Journal entry is shown below:-

1. No Journal entry is required

2. Cash Dr, $27,000

          To Due from other funds $27,000

(Being the cash collected which is due from others is recorded)

3. Inventory of suppliers Dr, $307,000

            To Accounts payable $307,000

(Being purchase of supplies is recorded)

4. Advance from water utility fund Dr, $15,000

           To Cash $15,000

(Being repayment of advance of water utility fund is recorded)

5. Operating expenses Dr, $296,960

($250,560 + $46,400)

           To Inventory of supplies $296,960

(Being issue of supplied is recorded)

5. Due from other funds Dr, $371,200

($313,200 + $58,000)

            To Revenue charged for services and sales $371,200

(Being the charge of supplies is recorded)

6. Operating expenses of sale and services Dr, $49,400

($15,000 + $16,900 + $17,500)

Operating expenses of administrative Dr, $9,000

            To Accounts payable $58,400

(Being operating expenses is recorded)

7. Cash Dr, $350,000

($310,000 + $50,000)

          To Due from others $350,000

(Being cash received from general fund is recorded)

8. Accounts Dr,$365,000

          To Cash  $365,000

(Being the payment of accounts payable is recorded)

9. Operating expenses cost of depreciation Dr, $14,600

          To Accumulated Dep - Building $10,000

           To Accumulated Dep - Equipment $4,600

(Being depreciation expenses is recorded)

Revenue charged for sales and services Dr, $444,200

          To operating expenses cost of depreciation $14,600

          To operating expenses cost of administrative $9,000

          To operating expenses cost of sale and services $49,400

          To operating expenses cost of sale $371,200

(Being transfer the operating expenses is recorded)

5 0
3 years ago
While at a garage sale, jenna purchased a set of used plastic baby bottles. she noticed the symbol "7" in a triangle on the bott
grigory [225]
<span>I would tell Jenna that she first needs to research what the 7 on the bottom of the bottles means. This number is in reference to the specific type of plastic used in the bottles. She needs to make sure this plastic has not been deemed as dangerous for infants. Once cleared, she should thoroughly wash the bottles and use them.</span>
6 0
3 years ago
Sufficient Dwelling Coverage? Colton Gentry of Lancaster, California, has owned his home for ten years. When he purchased it for
Shtirlitz [24]

Answer:

a. $17,978

b. $300,000

Explanation:

Conditions

  • The  cotton country of lancaster, california has owned his home for ten years
  • purchased it for $178,000, cotton bought a $160,000 homeowner's insurance policy
  • the replacement cost of the home is now $300,000

a.    hence,

the proportion of the house insured = \frac{InsuranceAmount}{PriceOfThe Home} \times 100%

                                                             = \frac{160000}{178000}\times 100

                                                             =   89.89%

Percentage amount covered by the policy

= proportion of the house insured = 89.89%

Amount covered by the policy in dollars

= $20,000 × 89.89%

= $17,978

b

Amount of insurance on the home that cotton should now carry to be fully reimbursed for a fire loss  = current value of the home

= $ 300,000

5 0
3 years ago
The deprecation method that charges more expenses in earlier years than in later years is
vlabodo [156]
Double-declining balance. Keep in mind there are three main ways to depreciate: straight-line, units of production, and double declining balance. Straight-line means depreciating the same amount every year. Units of production is based off your production levels for the year. Double declining means you depreciate more in earlier years (2 times your straight-line rate) and depreciate less in later years. 
4 0
3 years ago
Read 2 more answers
A mutual fund has $2 million in cash and $6 million invested in securities. It currently has 1 million shares outstanding.
Mamont248 [21]

Answer:

a. NAV = 8 per share

b. 250.000 shares

c. 7.95

Explanation:

a. NAV = Market value of shares/number of shares = $8m/1m = $8 per share

b. At the current NAV, it can absorb up to $2 million, or 250,000 shares.

c-1. Its loss by selling 25,000 shares of IBM at $34 instead of $36 = -$2 x 25,000 = -$50,000.

New NAV = $7,950,000 /1m = $7.95

5 0
3 years ago
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